UTI Mutual Fund announced the launch of the UTI Balanced Advantage Fund, an open-ended dynamic asset allocation fund suitable for investors seeking
- Long-term capital appreciation and income
- Investment in a dynamically managed portfolio of equity and debt instruments.
The scheme opened for public subscription on July 21, 2023, and will close on August 04, 2023. The scheme re-opens for continuous sale and repurchase on August 17, 2023.
Q. What kind of mutual fund scheme is this?
This is an open-ended index fund replicating/tracking NIFTY50 Hybrid Composite Debt 50:50 Index. The portfolio of the scheme will be dynamically managed based on valuation and a fundamentally driven in-house proprietary asset allocation model.
Q. What is the main objective of investing in this fund?
The scheme intends to provide long-term capital appreciation and income by investing in a dynamically managed portfolio of equity and debt instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
Indicative allocations (% of total assets)
Equity & equity-related instruments
Debt and Money Market instruments (including securitized debt)
Low to Moderate
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) in India have launched many such similar funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Mutual Fund House
Name of the fund
Invesco Mutual Fund
Invesco India Balanced Advantage Fund
HDFC Mutual Fund
HDFC Balanced Advantage Fund
Bank of India Mutual Fund
Bank of India Balanced Advantage Fund
Axis Mutual Fund
Axis Balanced Advantage Fund
LIC Mutual Fund
LIC MF Balanced Advantage Fund
PGIM India Mutual Fund
PGIM India Balanced Advantage Fund
Edelweiss Mutual Fund
Edelweiss Balanced Advantage Fund
Q. How will the scheme benchmark its performance?
Nifty 50 Hybrid Composite Debt 50:50 Index is the benchmark for UTI Balanced Advantage Fund. Benchmark has been chosen on the basis of the investment pattern/objective of the scheme and the composition of the index. A benchmark may be changed in the future if a benchmark better suited to the investment objective of the scheme is available. The performance will be benchmarked to the Total Returns Variant of the Index.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:
- Redemption/switch out within 12 months from the date of allotment
i) Up to 10% of the allotted units – Nil
ii) Beyond 10% of the allotted units – 1.00%
- Redemption/switch out after 12 months from the date of allotment – Nil
Q. Who will manage this scheme?
Sachin Trivedi is the dedicated fund manager who would be looking after the “Equity” aspect of the fund while Anurag Mittal would be looking after the “Fixed Income” aspect of the fund.
Q. Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.