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.
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
- Yield Curve
- Macro Fundamentals
- Relative Asset Class Momentum
- 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:
- Rule-based allocation in different asset classes.
- Rule-based allocation within each asset class.
- 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-
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Equity related schemes||0%||100%||High|
|Debt related schemes||0%||100%||Low to Moderate|
|Gold ETF||0%||25%||Moderate to High|
|Units of Liquid schemes and money market instruments||0%||5%||Low to Moderate|
About the scheme-
|Name of the fund||Nippon India Asset Allocator FoF|
|Fund launched by||Nippon India Mutual Fund|
|Asset Management Company||Nippon India Life Asset Management Limited|
|Type of scheme||An open-ended FoF scheme investing in units of Equity schemes, Debt schemes, and Gold ETF of Nippon India Mutual Fund.|
|Investment Objective||The investment objective of the scheme is to generate long-term capital growth through investments in units of Equity schemes, Debt schemes, Gold ETF, and liquid schemes of Nippon India Mutual Fund along with money market instruments.|
|Benchmark||CRISIL Hybrid 50+50 - Moderate Index|
|Entry Load||Not Applicable|
10% of units can be redeemed without exit load. Any redemption in excess of 10% will be applicable for exit load as under:
1% of applicable NAV - If units are redeemed or switched out within 12 months.
Nil - If units are redeemed or switched out after 12 months.
|Minimum Application Amount||₹ 5,000 & in multiple of ₹ 1 thereafter|
|Minimum Additional Amount||₹ 1,000 & in multiple of ₹ 1 thereafter|
|SIP Top-up, STP,DTP & SWP||Available|
|Fund Managers||Mr. Prashant Pimple (Senior Fund Manager) and Mr. Ashutosh Bhargava (Co-Fund Manager)|
|Type||Minimum Installments||Minimum Amount|
|Monthly SIP||60||₹ 100 & in multiples of ₹ 1 thereafter|
|12||₹ 500 & in multiples of ₹ 1 thereafter|
|6||₹ 1,000 & in multiples of ₹ 1 thereafter|
|Quarterly SIP||12||₹ 500 & in multiples of ₹ 1 thereafter|
|4||₹ 1,500 & in multiples of ₹ 1 thereafter|
|Annual SIP||2||₹ 5,000 & in multiples of ₹ 1 thereafter|