The New Year is here and with that is the arrival of several New Year resolutions which usually revolve around health and personal growth, maybe it’s time we add healthy financial practices to the list too.

 

The world is becoming even more geo-politically volatile which has in turn resulted in rising living costs, job uncertainty and the ever increasing need to have a safety net.

 

Let’s look at some healthy and safety practices you should ideally adhere to from this year onwards.

 

Whenever the equity markets hit a new high, it brings along with it a unique set of challenges for investors.

Often many of these challenges are self-inflicted and easily avoidable, humans are anything but simple though.

Investors tend to grapple with fearing a market crash to pondering over an exit with the intent to re-enter the markets at an imaginary low.

Such scenarios have their origin in the belief that making money in the market means buying low and selling high, a very easy method to spot a trader in the garb of an investor.

If you are a long term investor but at the same time if your opinion and beliefs can be swayed easily by market movements then maybe you are not one but how does one wake up someone pretending to be asleep but not asleep?

Equity Investing is simple but not easy, the inability to discern between the two and the urge to reinvent the wheel often leads one in a soup.

 

Quant Mutual Fund is coming out with a NFO in the form of Quant Business Cycle Fund.

Quant Business Cycle Fund would be an open ended fund with no restriction to any caps or sectors and looking for opportunities in businesses and sectors going through a cyclical change. 

The fund would be open for subscription from May 12, 2023 to May 25, 2023.

 

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.

 

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.

 

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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.

 

 

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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.

 

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

 

 

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.

 

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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.

 

 

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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.

 

Union Mutual Fund is coming out with a NFO in the form of Union Multi cap Fund.

Union 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 November 28, 2022 to December 12, 2022.

 

Whenever the equity markets are on the rise, schemes of a particular fund house are outperforming its peers or when a particular mutual fund scheme or a particular sector is generating extra ordinary returns, a very unique set of investors flock the equity markets.

 

Their uniqueness is in reference to their belief that the equity markets will always be on the rise, a sentiment contrary to empirical evidence since the beginning of the equity markets.

 

It is very easy and simplistic to refer to them as optimists when in reality, greed is the trait in play.

 

Baroda BNP Paribas Mutual Fund is coming out with a NFO in the form of Baroda BNP Paribas Flexi cap Fund.

Baroda BNP Paribas Flexi cap Fund would be a flexi cap fund with no restriction to any caps.

The fund would be open for subscription from July 25, 2022 to August 08, 2022.

 

Quant Mutual Fund is coming out with a NFO in the form of Quant Large Cap Fund.

Quant Large Cap Fund would be a large cap fund requiring minimum 80% allocation to large cap stocks at all times.

The fund would be open for subscription from July 20, 2022 to August 03, 2022.

 

Edelweiss Mutual Fund is coming out with a NFO in the form of Edelweiss Focused Equity Fund.

Edelweiss Focused Equity Fund would be a focused equity fund with no restriction to any caps.

The fund would be open for subscription from July 12, 2022 to July 25, 2022.

 

Mutual Funds as a medium of investment has gained acceptance in the past few years.

Despite that, the ratio of mutual fund investors to the actual population is still on the lower side.

With any investment, it is only natural to look out for the advantages that it holds.

 

Imagine a scenario where you recently purchased a couch.

It looks good by itself but something feels off, as if something is missing.

Something that would make the couch look even better.

Before you know it, there are new pillows to match the couch and a side table with an indoor plant that complements the couch.

The entire layout of your living room has now been completely changed, it all started with a new couch.

This is an example of the Dilderot Effect.

 

Axis Bluechip Fund was once the go to large cap fund for most investors in the large cap space.

This was not confined to only those wanting to invest in a large cap fund but also those who did not, they were motivated by returns.

2018 to mid 2020 was the same case for most axis mutual fund schemes & not just Axis Bluechip Fund.

So what exactly has gone wrong & what is ailing Axis Bluechip Fund.

If your money is not working hard 24/7 for you then you will always end up working hard for your money till your last breath.

Compounding does that for you, it works for you even when you are not working.

 

Parag Parikh mutual fund had recently announced in January 2022 that it would not be accepting fresh lumpsum or fresh sip registrations in Parag Parikh Flexi Cap fund from February 2, 2022.

It has now decided to reopen the scheme from 15^th March 2022 considering there is no clarity yet with regards to the increasing of the limit.

 

Invesco Mutual Fund is coming out with a NFO in the form of Invesco Flexi cap Fund.

Invesco Flexi cap Fund would be a flexi cap fund with no restriction to any caps.

The fund would be open for subscription from January 24, 2022 to February 07, 2022.

 

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.

 

IIFL Mutual Fund is coming out with a NFO in the form of IIFL Quant Fund.

IIFL Quant Fund as the name suggests, would be a quant fund.

The fund would be open for subscription from November 08, 2021 to November 22, 2021.

 

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

LIC Balanced Advantage Fund as the name suggests, would be a balanced advantage fund.

The fund would be open for subscription from October 20, 2021 to November 03, 2021.