JioBlackRock Mutual Fund to launch balanced advantage fund in September. Check dates and key details

Synopsis

JioBlackRock Mutual Fund will launch the JioBlackRock Balanced Advantage Fund in September, with the NFO open for subscription from September 11 to September 25. The fund will invest dynamically in equity and debt instruments. Here are the key details, including the NFO dates, asset allocation, benchmark, fund managers and risk level.

JioBlackRock Mutual Fund will launch the JioBlackRock Balanced Advantage Fund in September. The new fund offer (NFO) for the balanced advantage fund will open for subscription on September 11 and close on September 25.

The fund will reopen for continuous sale and repurchase within five business days of the allotment date. The fund house had filed the draft offer document with Sebi for the hybrid fund on August 13.

JioBlackRock Balanced Advantage Fund will be an open-ended dynamic asset allocation fund investing in debt and equity instruments only, and the investment objective will be to generate long-term capital appreciation with income generation by investing in a dynamically managed portfolio of equity and debt instruments.

Also Read |JioBlackRock Mutual Fund files draft with Sebi for balanced advantage fund

The performance of the fund will be benchmarked against Nifty 50 Hybrid Composite Debt 50:50 Index (TRI) and will be managed by Tanvi Kacheria, Sahil Chaudhary, Virendra Kumar, Arun Ramachandran, Vikrant Mehta, and Siddharth Deb.

The scheme shall offer two plans, viz. regular plan and direct plan. Each plan will offer only a growth option, and that will be the default option. The minimum application amount for lumpsum investment will be Rs 500 and any amount thereafter. For SIP, the minimum application amount will be Rs 500 and in multiples of Re 1 thereafter with a minimum of six instalments.

The minimum amount for switch-in to the scheme will be Rs 500 and any amount thereafter and the minimum amount for additional purchase will be Rs 500 and any amount thereafter.

The fund will allocate 65-90% in equity and equity-related instruments and 10-35% in debt and money market instruments.

Investment strategies

The investment objective of the scheme will be pursued through an active investment strategy that employs a systematic approach to asset allocation between equities and fixed income, and to security selection for equity portfolio construction.

The portfolio construction process is powered by BlackRock's technology platform - Aladdin, which has been licensed to JioBlackRock AMC. This process is augmented by an optimization process which leverages the composite research score along with other inputs from the investment team such as risk constraints, transaction cost, market liquidity, sector or stock constraints and such other inputs.

The fund will be suitable for investors seeking long-term capital appreciation and income generation through a dynamically managed portfolio of equity and debt instruments.

According to the scheme’s riskometer, investment in the fund carries a “very high” risk, while the benchmark is classified as “high risk”.

Also Read | NFO Alert: Jio-BlackRock enters India's ETF market with Nifty50 fund

In July, the fund house filed draft documents with the market regulator for two funds - JioBlackRock Corporate Bond Fund and the JioBlackRock Nifty 50 ETF. Out of these two funds, the JioBlackRock Nifty 50 ETF, the first Exchange Traded Fund (ETF) by the JioBlackRock Mutual Fund, completed its NFO period on August 11. The fund house is yet to announce the NFO dates of its corporate bond fund.

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