Upcoming NFO: JioBlackRock Mutual Fund Files Draft for Balanced Advantage Fund with SEBI

JioBlackRock Mutual Fund has filed the draft Scheme Information Document (SID) for the JioBlackRock Balanced Advantage Fund with SEBI. The scheme has been classified as a Hybrid – Balanced Advantage Fund and will invest in equity and debt instruments.  

Investment Objective 

The scheme will invest in a dynamically managed portfolio of equity and debt instruments. Its stated objective is to generate long-term capital appreciation along with income generation. The SID states that there is no assurance that the objective will be achieved.  

Asset Allocation 

Under normal circumstances, 65% to 90% of the scheme’s total assets will be allocated to equity and equity-related instruments. Debt and money market instruments can account for 10% to 35% of the assets.  

The scheme can use equity derivatives for hedging, which can bring net equity exposure below 65%. The SID gives an example where gross equity exposure of 70% can be reduced to 30% after a 40% hedge.  

Investment Details 

The minimum lump-sum investment is ₹500, while the minimum SIP amount is also ₹500. Additional purchases can be made with a minimum of ₹500. The draft specifies nil exit load and an New Fund Offer (NFO)price of ₹10 per unit. NFO dates have not been specified.  

Benchmark and Plans 

The fund will use the Nifty 50 Hybrid Composite Debt 50:50 Index (TRI) as its Tier I benchmark. It will offer Regular and Direct Plans, with Growth as the only option under both plans. 

Investment Process 

For equity investments, the scheme will consider valuation, quality, sentiment, and fundamental momentum. The portfolio construction process will use BlackRock’s Aladdin platform, along with inputs covering risk limits, transaction costs, market liquidity and sector or stock restrictions. 

The debt strategy will consider credit risk, interest rate risk and liquidity while investing across debt and money market instruments. The portfolio can be rebalanced when required, with derivatives permitted for hedging, non-hedging, and portfolio rebalancing.  

Read More: NFO Alert: UTI Mutual Fund Launches UTI Balanced Hybrid Fund! 

Conclusion 

The proposed fund will invest across equity and debt, with net equity exposure adjustable through derivatives. The draft specifies a ₹500 minimum investment. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.