• Sai Sahana

AssetPlus NFO Review: Franklin India Balanced Advantage Fund

Franklin AMC has recently launched an NFO which is open for subscription from August 16, 2022, to August 30, 2022.


FUND DESCRIPTION


A fund that invests in a dynamically managed portfolio of equity and equity-related securities, fixed income, and money market instruments and periodically rebalances the portfolio based on market valuations.


FUND STRATEGY


An equity stock would be selected based on two metrics –

1. Fundamentals, growth potential of the company in the long run, and macro-economic trends of the industry using their in-house qualitative model.


2. Valuations – Quantitative parameters like the Price to Earnings (PE) ratio and Price to Book Value (PBV) ratio would be taken into consideration to gauge the value at which a stock is available in the market.



Source: Franklin AMC

As explained in the above image, if the valuations are attractive, higher equity allocation would be maintained to take advantage of the low prices and vice versa.

The investment in fixed income instruments would be strategically managed based on the equity market and bond market conditions.

WHY SHOULD YOU INVEST IN THIS FUND?

  1. The fund managers have the liberty to allocate investments to equity and debt instruments without no minimum restriction in asset classes or market capitalizations.

  2. Lower volatility compared to a pure equity fund and higher returns than a debt fund.

  3. Mitigated risk as your investments are diversified across equity and debt asset classes.

  4. Suitable for investors with a moderate risk appetite.

  5. Experienced fund management team with a strong in-house asset allocation model.

It is of utmost importance that the fund is discussed with your investment manager and then ascertain whether it is suitable to invest in. Always read the scheme documents thoroughly before investing.




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