Nippon India Asset Allocator FOF

Nippon India Mutual Fund has announced the launch of Nippon India Asset Allocator FOF (Fund of Funds). It is an open-ended scheme that will invest its assets in units of equity-related schemes, debt-related schemes, gold ETF, and liquid schemes of Nippon India Mutual Fund. It may also invest in money market instruments. As per scheme documents, the fund will follow an in-house proprietary model for the allocation of its assets in different schemes.

The New Fund Offer (NFO) starts from 18th January 2021 and will close on 01st February 2021.

The fund will reopen for continuous sale and repurchase on or before 15th February 2021.

Investment Objective 

The investment objective of the scheme is to provide long-term capital growth to investors by investing in units of equity schemes, debt schemes, gold ETFs, and liquid schemes of the Nippon India mutual fund.

Investment Strategy of Nippon India Asset Allocator FOF

The scheme will follow an in-house proprietary model to make investments.

What is an in-house proprietary model?

The fund will use an in-house proprietary model to allocate its assets in equity, debt, and gold schemes. Also, the rebalancing of the allocation will be done on a monthly basis.

The In-house proprietary model is based on the following parameters:

• Trend Following
• Valuations
• Yield Curve
• Macro Fundamentals
• Relative Asset Class Momentum

Features

• The Fund will be investing in units of equity, debt, Gold ETF, and liquid schemes of Nippon India Mutual fund.
• The fund proposes to hold a diversified multi-asset portfolio. The diversification of the portfolio could help in benefiting from the cyclical nature of asset classes.
• It will allocate its asset based on a select time-tested and set of Macro & Market Variables.
• The fund will follow an in-house proprietary model to allocate its assets in different asset classes.

Why invest in Nippon India Asset Allocator Fund of Fund?

• This fund gives an exposure of equity, debt, gold, and money market instruments.
• The fund offers a solution which aims to capture the change in trends among & within asset classes through a dynamic asset allocation model.
• The fund aims to achieve a fine blend of variables through its model which can help to increase risk-adjusted returns.
• The fund aims to benefit from three layers of alpha which are:

1. Rule-based allocation in different asset classes.
2. Rule-based allocation within each asset class.
3. Return potential by investing in actively managed schemes.

Who Should Invest?

This scheme is suitable for investors who are -

• Interested in long-term capital growth.
• Interested in capital growth and income by making investments in equity, debt, gold, and liquid schemes of the Nippon India Mutual Fund.
• Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern-

About the scheme-

SIP Details