Home / Mutual Funds / News /  NJ Mutual Fund raises 5,200 crore in Balanced Advantage Fund NFO

MUMBAI : NJ Mutual Fund has raised around 5,200 crore in the new fund offer (NFO) of its balanced advantage fund (BAF). NJ Mutual Fund received its licence on 30 April 2021 and is part of the NJ Group, one of India's largest mutual fund distribution firms. The bulk of the collections has come through the NJ's own mutual fund distribution arm, with around 230 crore coming from about 140 non-NJ distributors and registered investment advisers NJ Mutual Fund has a total of about 225,000 investors from more than 600 districts in 35 states and Union territories, its chief executive officer Rajiv Shastri told Mint. As a mutual fund distributor, NJ Wealth contributes more than 118,000 crore of the MF industry’s current AUM. The group also has a portfolio management service (PMS) that manages about 3,000 crore in assets.

We calculate an allocation to equity based on both fundamental and technical parameters. The equity portion is then invested using a multi-factor approach based on value, quality, momentum and volatility factors, said Shastri. "The initial allocation to unhedged equity is 40% or so," he added. As a fund house, NJ is focused on a rules-based and smart-beta driven approach rather than a fund manager driven one. "There is a growing opportunity in rule-based investing that has attracted a lot of attention and AUM in developed markets, which is more or less missing in India. A cursory look at fund flows indicates that not only a bulk of fresh flows but also a dominant portion of assets are now managed through rule-based methodologies in developed markets. This is an almost vacant space in the Indian retail MF marketplace, which we plan to inhabit," Shastri told Mint in an interview in May.


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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