PGIM India Balanced Advantage Fund
(An open-ended Dynamic Asset Allocation Fund)


Key Features

Benchmark Index
Benchmark Index

CRISIL Hybrid 50+50 Moderate Index

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Minimum Application Amount
Minimum Application Amount

Minimum of ₹ 5,000/- and in multiples of ₹ 1/-thereafter.

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Minimum Additional Amount
Minimum Additional Amount

Additional Purchase - Minimum of ₹ 1000/- and in multiples of ₹ 1/- thereafter.

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Exit Load
Exit Load

For Exits within 90 days from date of allotment of units : 0.50%.

For Exits beyond 90 days from date of allotment of units : NIL

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Scheme Overview

Investment Objective

To provide capital appreciation and income distribution to the investors by dynamically managing the asset allocation between equity and fixed income using equity derivatives strategies, arbitrage opportunities and pure equity investments. The scheme seeks to reduce the volatility by diversifying the assets across equity and fixed income.

However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee/ indicate any returns.

Investment Strategy

  • The Fund will allocate money to equity and fixed income asset classes based on the percentage allocation suggested by the Dynamic Advantage Asset Allocation Facility (DAAAF) model.
  • DAAAF is a unique P/E based variation asset allocation facility, that automatically manages asset allocation across equity and debt in different market phases based on an in-house proprietary P/E based investment model. DAAAF manages allocation across equity and debt based on the market valuations and P/E based model & executes three critical strategies:
  • Enter: When the equity market is undervalued i.e. Current P/E is significantly lower, it switches or increases allocation from the debt allocation to the equity allocation.
  • Exit: When the equity market is overvalued i.e. Current P/E is significantly higher, it switches or decreases allocation from the equity allocation to the debt allocation.
  • Re-enter: When valuations are reasonable vis-à-vis the historical averages, it switches / increases allocation to the equity allocation from the debt allocation.

At the time of initial NFO allotment, the basis on which the fund would be allocating resources is summarized in the following table:

Variation* from Long Term average PE % Equity Allocation
Above 40% 30%
Between 31% and 40% 30%
Between 21% and 30% 40%
Between 11% and 20% 60%
Between 1% and 10% 80%
Below 0% 100%

*PE variation is defined as the deviation of trailing PE of Nifty 50 Index ( observed on a 20 days moving average basis) from 15 year rolling average PE of Nifty 50 Index.

From the subsequent month from the date of allotment, the fund would rebalance the portfolio on monthly basis according to the following table:

Variation* from Long Term average PE Rising Variation***
Less than -20% Directional equity exposure 100%
Between -20% and -11% Maintains exsiting equity exposure plus switches 50% of debt equity for every monthly observation
Between -10% and 0% Maintains exsiting equity exposure plus switches 10% of debt equity for every monthly observation
Between 1 and 10% Maintains exsiting equity exposure
Between 11 % and 30% Maintains exsiting equity exposure
Between 21% and 30% Maintains exsiting equity exposure
Between 31% and 40% Shifts 50% money from debt equity for every monthly observation**
Above 40% Directional equity exposure 100%


Variation* from Long Term average PE Falling Variation***
Above 40% Directional equity exposure 30%
Between 31%% and 40% Shifts 50% money from debt equity for every monthly observation**
Between 21% and 30% Directional equity exposure 50%
Between 11 and 20% Directional equity exposure 50%
Between 1% and 10% Directional equity exposure 65%
Between -10% and 0% Maintains exsiting equity exposure plus switches 10% of debt to equity for every monthly obervation
Between -20% and -11% Maintains exsiting equity exposure plus switches 50% of debt to equity for every monthly obervation
Less than -20% Directional equity exposure 100%

* PE variation is defined as the deviation of trailing PE of Nifty 500 Index (observed on a 20 days moving average basis) from 15 year rolling average PE of Nifty 500 Index.

** This will be subject to the overall equity floor of 30%.

***Fund will have at least 65% exposure to equity and equity related instruments at all points of time. Within this, minimum directional exposure to Equity will not go below 30% and the balance exposure will be invested in derivatives.

The rising and falling variation would be defined as a sequential rise or fall in the variation on a month on month basis that is, the variation for a particular month end would be compared to the variation of the previous month end to ascertain the trend.

The model recommendations would come on the 1st working day of the month, basis which the recommended actions needed to be taken in the portfolio will be executed within 7 working days.

In case there is a deviation from the model recommendation at the end of the execution period (i.e. the 7th working day), the portfolio would be rebalanced within another 7 working days and reasons for the same shall be recorded in writing.

The asset allocations to Equity and Fixed Income asset classes would be governed by the DAAAF Model, however, the selection of specific securities/papers in equity as well as debt will be done at the respective fund manager’s discretion. The Equity portion of the investments would be allocated in a diversified manner and the Fixed Income portion of the investments would be managed through investments in debt securities at the fund manager’s discretion.

The overall investment strategy will be in line with the investment objective and asset allocation of the scheme at all times.

Scheme Performance
Scheme Portfolio
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This product is suitable for investors who are seeking*:

  • Capital appreciation over a long period of time.

  • Investment in equity and equity related securities including the use of equity derivatives strategies and arbitrage opportunities with balance exposure in debt and money market instruments.

  • Degree of risk – VERY HIGH

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Riskometer

Very High - Investors understand that their principal will be at very high risk

fund managers
aniruddha Naha

Mr. Aniruddha Naha

Over 22 years of industry experience in the equity and debt market. 

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Hitash Dang

Mr. Hitash Dang

Over 23 years of experience in the equity markets, sales and Business Development

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Puneet Pal

Mr. Puneet Pal

Over 21 years of experience in Debt Market

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Rahul Jagwani

Mr.Rahul Jagwani

Over 5 years of experience in Equity Research

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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.


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