Home / Money / Personal Finance /  Mirae Asset MF files for BAF with Sebi

Mirae Asset Mutual Fund has filed the draft scheme information document (SID) for its upcoming scheme in the hybrid category: Mirae Asset Balanced Advantage Fund (BAF), an open-ended dynamic asset allocation fund.

It aims to capture the potential upside of equities while limiting the downside by moving between equity and debt asset classes.

As per the filing, the fund manager will determine asset allocation depending on prevailing market and economic conditions such as equity valuations, interest rates and view on the asset.

The benchmark will be Nifty 50 Hybrid Composite Debt 50-50 Index. It only offers a ‘growth’ option.

BAFs typically use derivatives to hedge the equity exposure of the scheme. However, the total equity allocation is generally maintained at minimum 65% to enjoy favourable equity taxation.

Nirav Karkera, head - research, Fisdom said, “While the idea and the team behind it holds strong promise, there is no urgency to invest immediately at launch. Perhaps allocating to known funds within the category, while building insights into the scheme’s philosophy and style, will be ideal."

Satya Sontanam
Satya Sontanam is a senior content creator at Mint with a keen interest on data crunching, analysis and the story behind trends. She writes on personal finance including investments, regulations and data stories. Before joining Mint in December 2021, Satya worked as research analyst and also a personal finance writer at The Hindu BusinessLine. Satya is a qualified chartered accountant. In her free time, she enjoys doing yoga and listening to podcasts.
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