Upcoming NFO: The Wealth Company Mutual Fund Files Draft for Balanced Advantage Fund

The Wealth Company Mutual Fund has filed draft documents for its Balanced Advantage Fund, an open-ended hybrid scheme. The fund is designed to shift between equity and debt depending on market conditions.  

The document states that the aim is to generate long-term capital appreciation or income, but it also notes that this is not guaranteed.  

Asset Allocation 

The scheme plans to keep its equity exposure between 65% and 100% of total assets. Debt and money-market instruments would make up 10% to 35%, allowing the fund to move between the two segments.  

The filing caps equity derivatives used for hedging at up to 50% of the equity portion, while debt derivatives can be used up to 20% of the debt side.  

Securitised debt may account for as much as 20%, and credit-enhanced instruments are restricted to 10% of the debt portfolio.  

Investment Details 

Both Direct and Regular plans will be offered, with growth and IDCW options. The minimum investment during the new fund offer is ₹5,000. Additional purchases start from ₹1,000. SIPs begin at ₹250, depending on frequency.  

There is no entry load. Redemptions within 180 days carry an exit load of 1%, and no load applies after that period.  

Transactions and NAV 

Units can be bought or redeemed on business days. The fund house is expected to dispatch redemption proceeds within 3 working days. NAVs will be calculated daily, rounded to 2 decimals, and published on the AMFI and AMC websites. The units are not proposed to be listed on an exchange.  

Benchmark and Team 

The scheme will track the CRISIL Hybrid 50+50 – Moderate Index (TRI) as its benchmark. The equity portion will be managed by Mrs. Aparna Shanker, and the debt segment will be handled by Mr. Umesh Sharma and Mr. Varun Nanavati.  

Read More: Invesco Mutual Fund Reopens Subscriptions in 3 International FoFs! 

Conclusion 

As this is a new scheme, there is no available performance history. Further details will follow once regulatory review is complete and the final offer document is issued. 

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.