UTI Balanced Advantage Fund opens today: Check details, closing date, fund manager, investment clauses

UTI Mutual Fund has launched its UTI Balanced Advantage Fund, which is an open-ended dynamic asset allocation fund. The new fund offer starts today and will close on August 4, 2023.   

As per the statement issued by the company, the fund will be investing in a diversified portfolio of equity and fixed income. The portfolio of the scheme will be managed, based on valuation and fundamentals driven by in-house proprietary asset allocation model. 

The scheme aims to provide long-term capital appreciation and income by investing in a dynamically managed portfolio of equity and debt instruments. However, the company will not give any assurance that the investment objective of the scheme will be achieved. The scheme does not guarantee/ indicate any returns, the company clarified. 

Who can invest? 

This fund may be suitable for investors who are seeking long-term capital appreciation and income by investing in a dynamically managed portfolio of equity and debt instruments.  

Investment objective 

This is for investors who are looking for:  

> Long-term wealth creation 

> A diversified portfolio of equity and fixed income 

> A dynamic asset allocation solution to minimise risk of market volatility 

> Those seeking better risk adjusted and tax efficient reasonable returns 

Fund Manager 

The Equity part of the fund will be managed by Sachin Trivedi while the Fixed Income component will be managed by Anurag Mittal.

Other details 

During the NFO period, the units of the scheme will be sold at face value, i.e., Rs 10 per unit.

Minimum Application Amount 

The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter. 

Plans and Options Available 

Regular Plan and Direct Plan: The company is offering both plans -- Growth and Payout of IDCW options.

Load Structure 

Entry Load: NA  

Exit Load:  

A. Redemption/ Switch-out within 12 months from the date of allotment: 

(i) up to 10 per cent of the allotted Units – Nil

(ii) beyond 10 per cent of the allotted Units ‐ 1.0 per cent 

B. Nil thereafter 

Benchmark Index 

Nifty 50 Hybrid Composite Debt 50:50 Index 

“For most investors who invest through mutual funds, the challenge is in handling the volatility. They all know the reasons why they should invest in equity and wish to participate in wealth creation through equities but don’t quite know how to handle the volatility that accompanies the journey. Investors need an asset allocation framework and a rebalancing mechanism,” said Vetri Subramaniam, CIO, UTI AMC.

Also read: Is pledging shares and mutual funds better than taking a personal loan?

Also read: Mutual funds: Mid & small-cap mutual funds gave 18-20% returns in 10 years. Should you invest for short duration? 

Also watch: Stocks that share market analysts recommended on July 21, 2023: Titagarh Rail Systems, Polycab India, Bank of Maharashtra, VRL Logistics