NFO Analysis: Mahindra Manulife Balanced Advantage Yojana

Mahindra Manulife Mutual Fund offers various types of schemes such as equity-oriented, debt-oriented, hybrid and Fund of Fund schemes. The total assets under management of the Mahindra Manulife AMC are Rs 6,686.43 crore as of September 2021, which is launching a hybrid scheme-balanced advantage fund. This is an open-ended fund that seeks to invest and generate income through a dynamic mix of equity, debt and money market instruments. 

Subscription date: The NFO was launched on December 9, 2021, and will close on December 23, 2021. 

Objective of the scheme: The main investment objective of the scheme is to offer capital appreciation and generate income through dynamic asset allocation among equity, debt and money market instruments. The scheme seeks to diversify its assets in the above-mentioned instruments and reduce the volatility.  

Investment strategy: The investment strategy of the scheme is to optimize the potential of equity and debt over short to medium term period. The equity portfolio construction is based on a top-down approach and bottom-up stock selection. The goal is to construct the equity portfolio using the GCMV (Growth, Cash-flow generation, Management, Valuation) investment framework. In the case of debt portfolio, the scheme will invest in liquid, debt and money market securities by balancing the maturity and credit profile and aims to follow a duration strategy that looks to optimize yields. 

Fund Manager: Manish Lodha (Equity), Fatema Pacha (Equity) and Rahul Pal (Debt).

Benchmark: Nifty 50 Hybrid Composite Debt 50:50 Index TRI. 

This fund will be suitable for investors with moderate-risk appetites as the fund manager of this scheme will allocate the capital towards equity and equity-related instruments and debt. Investors willing to diversify their portfolios and want to include equity and debt can consider investing in this scheme. NFO is not the best option to invest in as there is no historical data available to track the performance. As this is not a new theme which the fund is offering, so it’s better to invest in schemes that already have historical data. Otherwise, investors who are willing to invest should have a high-risk appetite.