When you invest in mutual funds, you
consider various points like expected returns, goals, time horizon, etc. but
unfortunately most investors do not take into consideration tax implication of
their mutual funds.
It is important to do so since they affect the
overall returns and other decisions like the structure of your portfolio and
the timing of your exit.
HSBC Mutual Fund is
coming out with a NFO in the form of HSBC Multi cap Fund.
HSBC Multi cap Fund
would be a multi cap fund with minimum allocation requirement to large, mid and
small caps.
The fund would be open for subscription from January 10, 2023 to January 24, 2023.
As we are in a new year, it is only natural to have new
goals to improve your life.
This could be anything from eating healthy, reading more to
even self- care.
It does not harm to consider your financial health too while
you are at it.
After all there is no better time to review your financial health than at the beginning of a new year.
Whiteoak Capital
Mutual Fund is coming out with a NFO in the form of Whiteoak Capital Balanced
Advantage Fund.
Whiteoak Capital
Balanced Advantage Fund as the name suggests, would be a Balanced Advantage
fund.
The fund would be open
for subscription from January 20, 2023 to February 03, 2023.
NFO details for Whiteoak Capital Balanced Advantage Fund
|
Scheme Opens |
20/01/2023 |
|
Scheme Closes |
03/02/2023 |
|
Fund Manager |
Mr. Ramesh Mantri Ms. Trupti
Agrawal Mr. Piyush
Baranwal |
|
Benchmark |
Crisil Hybrid 50+50-
Moderate Index |
|
Minimum Investment |
500 |
|
Fund Category |
Dynamic Asset
Allocation |
|
Exit Load |
1% if units are
redeemed/switched out within 1 month from date of allotment. Nil thereafter |
Whiteoak Capital
Balanced Advantage Fund would be a dynamic asset
allocation or balanced fund.
Additional reading: Click Here to read our complete report on ESG mutual funds
Whiteoak Capital Balanced Advantage Fund
Investment Objectives
The investment
objective of the fund is to generate capital appreciation by dynamically
allocating its assets between equity and specified debt securities.
There is no guarantee
that the investment objectives of the scheme would be achieved.
Whiteoak Capital Balanced Advantage Fund
Allocation
The asset allocation
for the fund would be something like this
|
Asset
Class |
Minimum
% |
Maximum
% |
|
Equity and Equity Related instruments |
0 |
100 |
|
Debt & Money Market Securities |
0 |
100 |
The above figures are
only indicative and not fixed, the fund managers have the liberty to move
across the asset classes depending upon prevailing market conditions as long as
they remain within the mandate permitted.
What is a balanced advantage fund?
A dynamic asset allocation fund is more
popularly known as a balanced advantage fund.
A balanced advantage fund is a type of
hybrid fund.
It invests in debt, equity and arbitrage
positions although the allocation is not fixed and can also sit on cash if the
fund manager desires so.
Unlike other hybrid funds like multi asset,
aggressive and conservative, a dynamic asset allocation or a balanced fund does
not have a fixed mandate to follow.
The fund manager can move across different
asset classes based on the prevailing market conditions.
The importance of a balanced fund is more
felt during a bearish market phase since it can cut down its equity portion and
at the same time make periodic equity purchases in the dip.
This is unlike other pure equity funds who
at all times have to maintain their mandate irrespective of the market
situation.
This fund is suitable for investors seeking:
Capital appreciation while generating income over medium to long term.
Investments in a dynamically managed portfolio of equity and equity related instruments and debt and money market instruments.
A nfo means a new fund from a mutual fund
house which was not available earlier.
With growing acceptance of mutual funds as
a form of investment, mutual fund houses periodically introduce new fund offers
so as to complete their basket of investments available for investors.
A NFO is usually what results in the
beginning of a mutual fund scheme.
Other reasons being merger of schemes
within the same fund house or merger or acquisition of two or more fund houses,
these are rare instances though.
NFO meaning
A nfo or a new fund offer is a method by
which a mutual fund scheme raises the initial investment into the fund.
The new fund offer is available for
purchase for a limited number of days only.
After which it becomes unavailable for
fresh purchase or redemption for a couple of days.
Once this time duration is complete, the
nfo no more remains a nfo and is treated like any other open ended mutual fund
scheme.
In which you can invest and redeem as and
when you please, considering it is an open ended fund and you comply with the
necessary exit load calculations.
Should you invest
in a nfo?
You
can consider it if:
The new fund offer is a category of fund
that is not existent in your mutual fund portfolio.
If it is going to be a part of your
satellite portfolio.
If it adds a unique touch to your mutual
fund portfolio.
If you understand the functioning,
objectives and risks attached with the new fund offer.
The nfo mutual fund is aligned with your
risk profile.
You
should avoid it if:
The new fund offer is not going to add
anything of unique significance to your mutual fund portfolio.
If the nfo is going to be a part of your
core portfolio.
If the only reason you are investing is due
to FOMO (Fear of missing out).
If you do not understand the investment
style and risks attached with the nfo.
The nfo mutual fund is not aligned with
your risk profile.
Should you invest in Whiteoak
Capital Balanced Advantage fund?
Since this is a balanced advantage fund,
there is enough scope for the fund manager to move across asset classes.
Every fund manager in the dynamic asset
allocation category has the freedom to manage the fund as per her liking
therefore there is no one method and comparison.
It is better to allow the fund progress for
some months before even considering it, so you can have a better understanding of
the fund and then arrive at a conclusion whether the functioning of the fund is
aligned with your objectives or not.
Unlike equity funds, a balanced advantage
fund has less restrictions and more flexibility meaning every fund manager will
manage it in a manner that she feels fit.
With a balanced advantage fund, how it does
in a bull market is of less importance compared to how it performs in a bear
market and that is how its nav should also be judged.
If high returns is all you focus on then a
balanced advantage fund should not take your time and money.
For portfolio enquiries, email us with your doubts at info@themutualfundguide.com
Money in the right hand is an asset, in the wrong a liability.
You can tell a lot about a person by not how much he makes
but by how he manages what he makes.
Money is not the most important thing in your life, neither
is it any less important than your health and relationships.
If you do not respect your money, do not expect it to reward
you.
Money gives you options when you feel like you had none, this is both a blessing as well as a curse depending on you.
Baroda BNP Mutual Fund
is coming out with a NFO in the form of Baroda BNP Paribas Multi Asset Fund.
Baroda BNP Paribas
Multi Asset Fund would be an open ended multi asset allocation scheme investing
in Equity, Debt & Gold ETF.
The fund would be open for subscription from November 28, 2022 to December 12, 2022.
The most common misconception when it comes to investing in
mutual funds by a retail investor is chasing the ‘best mutual funds’ which ironically is also the major reason for
falling investor returns.
There is no such thing as the best mutual fund scheme and if you
are in pursuit of one then it is imperative you cut your losses as soon as
possible.
Often in the pursuit of the ‘best mutual funds’ investors end up with an extremely large number of mutual fund schemes.
