LIC Mutual Fund has announced the launch of LIC MF Balanced Advantage Fund (“LICMF BAF”), an open-ended Dynamic Asset Allocation Fund, which would invest across equity and debt & money market instruments using several parameters like valuation and earning drivers.
LICMF BAF is a Dynamic Asset Allocation Fund, would aim to generate return, largely through asset allocation strategy, thereby minimizing the impact of losses in adverse market conditions. LICMF BAF model would precisely use this relationship to determine optimum asset allocation level for the scheme. The model uses Interest rates, one year forward Price Earnings ratio and Earnings Yield, to arrive at the optimum asset allocation level.
Mr. Dinesh Pangtey, CEO, LIC Mutual Fund Asset Management Ltd said, “We at LIC MF would be using this inverse relationship between equity and debt in LICMF BAF for switching from equity to debt and vice versa, based on Fundamental Driven Mathematical Model.” The New Fund Offer (NFO) opens on Wednesday, October 20, 2021, and would close on Wednesday, November 3, 2021.
