Canara Robeco Mutual Fund, India’s second oldest asset manager, announced the launch of its Canara Robeco Balanced Advantage Fund, an open-ended dynamic asset allocation fund aimed at optimizing market gains while minimizing risks. The New Fund Offer (NFO) will be open from July 12 to July 26, 2024.
The fund, which will allocate at least 65% to equities to benefit from equity taxation, also invests in debt and money market instruments to cushion against market volatility. CEO Rajnish Narula highlighted the fund’s objective to dynamically adjust exposure to equities and debt, targeting long-term capital appreciation and income generation.The asset allocation is guided by a proprietary three-factor model, using Trailing P/B, Equity Risk Premium, and Forward P/E to navigate various market conditions. Head of Equities, Shridatta Bhandwaldar, emphasized the model’s back-testing over 20 years to ensure robust performance.
The fund employs a top-down approach for sector allocation and a bottom-up approach for stock selection, blending compounders and cyclicals. The debt portfolio focuses on government bonds and AAA-rated corporate papers for stability and liquidity, managed dynamically to capture yield curve mispricing.National Head of Sales and Marketing, Gaurav Goyal, introduced special features like the Auto Switch facility to transfer investments into the NFO on its last day and the Smart STP for staggered investments. The fund is benchmarked against the CRISIL Hybrid 50+50 – Moderate Index and managed by a team of experts including Shridatta Bhandwaldar, Ennette Fernandes, Suman Prasad, and Amit Kadam.
