Nippon India Balanced Advantage Fund attempts to capitalize on the
potential upside in equity markets while attempting to limit the
downside by dynamically managing the portfolio through investment
in equity and active use of debt, money market instruments and
derivatives. A model based Dynamic Asset Allocation Fund that aims
to offer Triple Benefits of 1. Emotion Free Asset Allocation through
Model Based Asset Allocation, 2. Lowers downside risk through
hedging and 3. Long Term Alpha – through Active Stock selection and
Sector. The fund follows an in-house proprietary Model (which follows
Valuations & Trend Following) to determine unhedged equity
allocation.
The fund maintains a large cap oriented portfolio diversified across
sectors. Debt portfolio is managed conservatively, focused at the
shorter end through investment in a combination of liquid and short
term fixed income securities.