LIC MF Balanced Advantage Fund

Overview
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About BAF
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An Open Ended Dynamic Asset Allocation Fund

The investment objective of the scheme is to provide capital appreciation/ income to the investor from a dynamic mix of equity, debt and money market instruments. The Scheme seeks to reduce the volatility by diversifying the assets across equity, debt and money market instruments. However, there is no assurance or guarantee that the investment objective of the Scheme will be realized.

Investors looking for long term wealth creations.
Circle-imgInvestors looking for diversification of investments.
Circle-imgInvestors who are looking for product with lower volatility than the pure equity product.
Circle-imgInvestors who are uncomfortable buying stocks at extremely high valuations.

This product is suitable for investors who are seeking.

Capital appreciation over a long period of time.
Investments in a dynamically managed portfolio of equity and equity related instruments,debt and money market instruments.
Risk - Moderately High.
.

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

Top holding where the fund has invested ( As on 31-Oct-2023 )

Government Bond11.95 %
HDFC Bank Ltd.11.27 %
ICICI Bank Ltd.7.88 %
Reliance Industries Ltd.5.17 %
State Bank of India4.97 %
Infosys Ltd.3.79 %
ITC Ltd.3.48 %
Tata Capital Housing Finance Ltd.3.44 %
Tata Consultancy Services Ltd.2.86 %
Mahindra & Mahindra Ltd.2.85 %
Others33.18 %
Cash & Cash Equivalent:9.15 %

Monthly Portfolio / Fortnightly Portfolio Download Half Yearly Portfolio

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Portfolio Composition (As of 31-Oct-2023)

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Sector Allocation As % Of Nav (As of 31-Oct-2023)

Fund Information

Inception : 12/11/2021
Entry Load : Nil
Exit Load : 12% of the units all ...more

NAV in INR as on 08-Dec-2023

Direct-Dividend11.7062
Direct-Growth12.0582
Dividend11.4642
Growth11.6248

Additional Fund Information as on 31-Oct-2023

Fund Size in INR (CR) 963.58
Portfolio Turnover 0.45
Expense Ratio (%) NA
Expense Ratio (Direct) (%) NA
First Tier Benchmark(s) NIFTY 50 Hybrid Composite debt 50:50 Index
Fund Manager Mr. Yogesh Patil (Equity Portfolio, managing since 12/11/21), Mr. Jaiprakash Toshniwal (Equity Portfolio Co Fund Manager, managing since 06/06/22) / Mr. Rahul Singh (Debt Portfolio, managing since 12/11/21)

Net equity allocation of the portfolio for the week ended 8th December 2023

Net Equity Allocation 56.49

Performance

Lumpsum
SIP

Investment Strategy

The Fund will allocate money to equity and fixed income asset classes based on the percentage allocation suggested by internal model developed by LIC Mutual Fund. Internal Model is a unique model derives the equity asset allocation after taking into account valuation ratios such as PE, P/BV, Mcap to GDP and prevailing interest rate (Like 10 year Gsec, Reverse repo). The model is designed to reduce the human bias and manages asset allocation across equity and debt in different market phases. The key attribute of the model is as below:

The model takes into account the historical trend and Forward estimates of PE, Earnings yield P/B and Mcap to GDP. The range is decided based on the last more than 10 year historical data points.

The PE range is decided on the base of the prevailing interest rate and the earnings yield. This way, we try to capture the effect on interest rate on the PE.

The equity allocation across range is decided based on the linear progression model between the derived range of the valuation inputs

WHY CHOOSE LIC MF BALANCED ADVANTAGE FUND?

May reduce the impact of losses in adverse market conditions on predefined parameters.

Circle-imgOptimum Asset allocation – Allocation through Fundamental Based Mathematical Model (FMM).

Circle-imgTax efficiency – The fund endeavours to keep its gross equity exposure greater than or equal to 65% to enable investors to avail equity taxation Benefit.

Circle-imgAim to generate near equity returns with lower volatility.

WHO SHOULD INVEST?

Investors looking for long term wealth creations.

Circle-imgInvestors looking for diversification of investments.

Circle-imgInvestors who are looking for product with lower volatility than the pure equity product.

Circle-imgInvestors who are uncomfortable buying stocks at extremely high valuations.

How does the fund work?

Where will the fund invest?

The corpus of the Scheme shall be invested in any (but not exclusively) of the following securities:

Equity and equity- related securities

Derivative Instruments

Debt and Money Market securities

Any other eligible instruments

How do we invest?

Deciding the asset allocation – We input various parameters such as interest rate, future earnings yield and price to earnings ratio in our model. The model output is the net equity exposure, basis on which we calculate the mix between net equity exposure, arbitrage and debt.

Stock / security selection – We select stocks based on our internal research and investment framework. The portfolio is constructed keeping in mind the investment objective of the fund.

Rebalance of Asset allocation – We rebalance the asset allocation based on the model output.

Rebalance of portfolio – The stock selection is on the discretion of the Fund manager. Fund Manager looks into various aspects of business environments including valuations and other parameter while rebalancing the portfolio with an objective of optimizing the returns.

Fund Documents

Fund Documents	Documents PDF
Fact Sheet
Scheme Information Document
KIM and Application form
Product Leaflet
Product Presentation

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Fund Snapshot