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:

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
Exit Load	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
Plans Available	Regular Direct
Options	Growth Dividend Payout Dividend Reinvestment
Fund Managers	Mr. Prashant Pimple (Senior Fund Manager) and Mr. Ashutosh Bhargava (Co-Fund Manager)

SIP Details

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
Quarterly SIP	4	₹ 1,500 & in multiples of ₹ 1 thereafter
Annual SIP	2	₹ 5,000 & in multiples of ₹ 1 thereafter