Canara Robeco Balanced Advantage Fund NFO: Review & NAV

Introduction

If you’re already a key player or new to the world of NFOs, you've come to the correct spot to learn about the latest trends, insights, and news influencing this dynamic market. We are today at Canara Robeco Balanced Advantage Fund-NFO Blog committed to giving you insightful knowledge, Financial attributes, past performance if any, etc. on this NFO.

 

Everything You Need To Know About Canara Robeco Balanced Advantage Fund NFO

The Canara Robeco Balanced Advantage Fund NFO under the house Canara Robeco Mutual Fund is a new open-ended balanced advantage Fund Scheme. The scheme seeks to invest dynamically in debt, money market, equity, and equity-related securities to create income and long-term capital appreciation. The lowest investment required to join is Rs.1000 and in multiples of Rs.1 thereafter. The Scheme’s investments will mostly be made in Equity and Equity related instruments, Debt instruments, Securitised Debt, and Money Market Instruments. The Scheme has a 1% Exit Load if redeemed above 12% of the allotted units within a year.

To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

 

 

Canara Robeco Balanced Advantage Fund - NFO Overview

The investment period for the Scheme is set for July 12, 2024, to July 26, 2024, with having offer for Units of Rs.10 for cash and a continuous offer for Units at NAV-based prices. The scheme will reopen on or before August 9, 2024, for continuous sales and re-purchase. The Scheme is a very high-risk Scheme. There is no assurance that the Scheme's investment goal will be met. The Scheme will allocate 65-100% of its investment capital to investing in Equity and Equity-related instruments and the remaining 0-35% portion will be allocated to Debt and Money Market Instruments. Since this Scheme is new hence no past performance record is available. 

 

Fund Overview

Start Date	12 July 2024
End Date	26 July 2024 (The Scheme will re-open for subscription on or before 9 August 2024).
Allotment Date / Subscription Date	Not more than 5 Business days after the closure date of the NFO.
VRO Rating	-
Expense Ratio	NA
Exit Load	1% if redeemed over 12% of allotted units within 1 year Nil if redeemed up to 12% of allotted units within 1 year Nil after 1 year.
Fund Size	NA
Lock-In	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	CRISIL Hybrid 50+50 – Moderate Index
Min. Investment	Rs.1000 and in multiple of Rs.1
Risk	Very High
Short-Term Capital Gains (STCG)	Returns taxed at 15% if you redeem before 1 year
Long-Term Capital Gains (LTCG)	After 1 year, pay a LTCG tax of 10% on returns of Rs.1 lakh+ in a financial year

 

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then generally after 5 business days after the closure date of the NFO; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based prices by logging on to your Demat account and search for “Canara Robeco Balanced Advantage Fund- NFO” on  CRISIL Hybrid 50+50 – Moderate Index.

To Open Your Demat Account, Click Here.

 

The Objective Of The Fund

The Scheme intends to create income and long-term capital appreciation by making dynamic investments in debt and money market instruments, as well as equity and equity-related instruments. Nevertheless, there can be no promise or guarantee that the Scheme's investment goal will be met.

Asset Allocation (% of Net Assets) Of The Scheme's Portfolio Will Be As Follows:

Types of Instruments	Min Allocation (% of Net Assets)	Max Allocation (% of Net Assets)
Equity and Equity related instruments	65	100
Debt and Money Market Instruments	0	35

 

Peers Of Canara Robeco Balanced Advantage Fund

Balanced Advantage Funds	6 M Return	AUM / Fund Size (Cr)
360 ONE Balanced Hybrid Fund	13.02%	751.94
WhiteOak Capital Balanced Hybrid Fund	11.52%	120.37

 

Risk Factors In This Scheme

• Purchasing money market instruments carries a moderate credit risk, or the chance that the issuer won't be able to make the principal and interest payments.

• Equities and securities linked to them are prone to daily price changes and are therefore considered volatile. Trading volumes and settlement times may limit the liquidity of investments made in the Scheme.

• Several variables impacting capital markets generally, including foreign investments, currency exchange rates, interest rates, price and volume fluctuation in the stock markets, changes in policy by the government, political, economic, and other developments, and stock exchange closures, could impact the value of the Scheme's investments.

• Changes in interest rates will have an impact on the NAV of the Units to the extent that the Scheme's corpus is invested in money market instruments. The value of a portfolio of money market instruments should decrease as market interest rates climb.

 

Past Performance Of Index Funds

Index / Debt Funds	NAV (Rs)	Annualized Return (1Y)	Return/Risk
Franklin India Balanced Advantage Fund-Direct Plan-Growth	14.13	28.52%	Very High
Kotak Balanced Advantage Fund Direct-Growth	20.91	22.80%	Very High
HDFC Balanced Advantage Fund-Growth	503.52	41.10%	Very High
SBI Balanced Advantage Fund - Direct Plan-Growth	15	24.76%	Moderately High

 

Canara Robeco Balanced Advantage Fund NFO-Who Can Invest?

This Fund is ideal for you if you are looking for long-term capital growth combined with income production and want to invest in a dynamically managed portfolio of debt and money market securities as well as instruments related to equity and debt.

 

 

Canara Robeco Balanced Advantage Fund NFO-Growth Fund Managers

• Shridatta Bhandwaldar

• Ennette Fernandes

• Suman Prasad

• Amit Kadam
  
  

Conclusion

The Scheme comes under a very high-risk category and has no previous performance track record. It plans to invest in Equity and Equity-related instruments and Debt and Money Market Instruments. There is no guarantee that the goals of this Scheme will be achieved. Research well according to your objectives, and the time horizon of your investment. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.