Home / Mutual Funds / News /  NJ MF launches its first product, a balanced advantage fund

NJ Mutual Fund has announced the launch of its first product, NJ Balanced Advantage Fund, an open-ended dynamic asset allocation fund.

The scheme aims to invest in equity and debt securities through a rule-based active investment philosophy, a release issued by the company said.

The new fund offer (NFO) will open for subscription on the 8 October and close on 22 October. The scheme will offer both regular and direct plans. Its benchmark is the NIFTY 50 Hybrid Composite Debt 50:50 Index.

According to a release issued by NJ Mutual Fund, the fund will be managed according to proprietary protocols that are tested across various market cycles and long time horizons.

About the NJ Balanced Advantage Fund launch, Rajiv Shastri, director and chief executive officer at NJ Asset Management Pvt. Ltd, said, “This launch marks the culmination of a process that began over a decade ago. Since 2010, our portfolio management services (PMS) have offered rule-based active investment approaches to discerning investors, which has made us among the largest PMS providers in the country. Combined with our learnings as one of India’s largest mutual fund distributors serving retail investors for more than 27 years, we are confident that our philosophy will be embraced by them as well."

In an interview with Mint in May, Shastri had said NJ will focus on passive and rules-based products.

“We have a factor-based approach to investing. Our factors are quality, value, momentum and low volatility. We don’t follow the traditional mutual fund approach of qualitative analysis, speaking to company managements, etc. Instead we develop techniques to measure these factors based on data. This approach and these factors have proven to be successful internationally as well. Our model throws up the stocks to be selected and even the asset allocation split. There is no human intervention once the protocol gives the results. The current unhedged equity exposure indicated by our protocol is about 40%. We will use derivatives to maintain a 65% gross equity exposure at all times. The expense ratio of the regular plan will be 1.85%," said Shastri.

Referring to the new fund, Amol Joshi, founder, Plan Rupee Investment Services, said there was no conflict of interest just because a distributor launches an MF. “We have MFs that are bank promoted, where bank is also distributor and contributes a substantial percentage of asset mobilization. Also, we have MFs promoted by financial entities that also have a wealth management arm," he said.

“As long as the promoter/distributor follows code of conduct for distributors, this is not an issue," added Joshi.


Neil Borate

Neil heads the personal finance team at Mint. A former colleague called them 'money nerds' and that's what they are. They cover topics like mutual funds, taxation and retirement, all to improve your chances of building wealth. Neil graduated with a degree in law and economics. He passed the CFA Level I exam and began his writing career at Value Research, a mutual fund research firm in 2016. He joined the personal finance team Mint in 2019. Everyday, the Mint Money Team tackles personal finance questions such as where to invest and where to borrow, through articles, charts and reader queries. They also have a daily podcast - 'Why Not Mint Money' and an annual ranking of mutual funds - the Mint 20.
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