Mahindra Manulife Balanced Advantage Fund NFO launched


Mahindra Mutual Fund is coming out with a NFO in the form of Mahindra Manulife Balanced Advantage Fund.

Mahindra Balanced Advantage Fund as the name suggests, would be a Balanced Advantage fund.

The fund would be open for subscription from December 09, 2021 to December 23, 2021.

Mahindra mutual fund

NFO details for Mahindra Balanced Advantage Fund

Scheme Opens


Scheme Closes


Fund Manager

Mr. Manish Lodha

Ms Fatema Pacha

Mr Rahul Pal


Nifty 50 Hybrid Composite Debt 50:50 Index TRI

Minimum Investment


Fund Category

Dynamic Asset Allocation

Exit Load

10% of units can be redeemed without any exit load before 3 months.

0.5% if redeemed/switched before 3 months.

Nil if redeemed within 3 months


Mahindra Balanced Advantage Fund would be a dynamic asset allocation or balanced fund.


Additional reading: Click Here to read everything you ever wanted to know about a NFO mutual fund

Mahindra 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.



Mahindra Balanced Advantage Fund Allocation

The asset allocation for the fund would be something like this

Asset Class

Minimum %

Maximum %

Equity and Equity Related instruments



Debt & Money Market Securities




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.



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Features of Mahindra Balanced Advantage Fund

  1. Mahindra balanced advantage fund would be a dynamic asset allocation or balanced fund.
  2. It will invest in both equity and debt but in varying and flexible numbers.
  3. It will follow an in house rules based active investing model.
  4. It can move anywhere between 0-100% in equity.
  5. For tax calculation purposes, it will be considered an equity fund.


Additional reading: Click Here to read about mutual fund mistakes you should avoid making

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.


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Taxation on Mahindra Balanced Advantage Fund

For the purpose of taxation, Mahindra Balanced advantage fund qualifies as an equity fund and the taxation charges applicable on it are as follows:


Long term capital gains tax better known as LTCG is applied on any equity mutual fund when the gains from an equity mutual fund which is held for more than a year is more than 1 lakh.

The LTCG rate is 10%.

Capital gains up to 1 lakh are exempt for taxes.

There is no indexation benefit when calculating LTCG.



Short term capital gains tax better known as STCG is applied on gains from an equity mutual fund which is held for 12 months or less.

The STCG rate is 15%.

There is no ceiling benefit in STCG like the 1 lakh ceiling in LTCG.

STCG is charged on from Re 1.


Should you invest in Mahindra Balanced Advantage fund?

This balanced advantage fund would be a new fund offer.

There is no history with regards to both the fund house as well as the fund manager, therefore there is not enough information available to dissect and understand the functioning with this new 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.



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Disclaimer : While due precaution has been undertaken in the preparation of this article, The Mutual Fund Guide or any of its authors will not be held liable for any investments based on the above article. The above article should not be considered financial advice and has been published only for your perusal. Due credit has been given in case wherever required, in case you feel any part violates any rights then do get in touch with us and we shall get it duly removed.  
Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing

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