NJ Balanced Advantage Fund

Nippon India Balanced Advantage Fund is a hybrid mutual fund offered by Nippon India Mutual Fund (formerly known as Reliance Nippon Life Asset Management Limited). This scheme began operations on January 1, 2013, and its current management is overseen by Ashutosh Bhargava, Amar Kalkundrikar, and Sushil Budhia, the respective fund managers.

The portfolio has a 78.16% allocation to domestic equities, distributed as follows: 19.47% in Large companies, 19% in Mid Cap stocks, and 10.37% in Small Cap stocks. The fund invests 14.08% of its total assets in debt, including 14.08% in government securities.

The investment objective of the fund is to generate long-term capital appreciation and income by investing in a balanced portfolio of equity and debt securities. The fund aims to provide an investment strategy that strikes a balance between growth and stability by allocating assets between equity, debt and money market instruments based on market conditions and the fund’s outlook.

Pros & Cons

How to invest in NJ Balanced Advantage Fund?

Using 5paisa, investing in the NJ Balanced Advantage Fund is simple. The streamlined procedure eliminates the need for documents. Here are the basic procedures to get you started:

Step 1: Log in to your 5Paisa Account. If you do not have one, click the link to register and create a new 5Paisa account in 3 easy steps. Alternatively, you can download the 5Paisa app on your smartphone for Android or IOS and log in from your device.
Step 2: Search for the NJ Mutual Fund scheme that you want to invest in
Step 3: Select the option that is apt for your requirement and risk appetite
Step 4: Select the investment type – SIP (Systematic Investment Plan) or Lumpsum
Step 5: Input the amount that you’d like to invest and proceed with payment by clicking on the ‘Invest Now’ button

That’s it! This sums up the investment process. Once your payment is successful, you can see the NJ Mutual Fund reflected in your 5Paisa account in 3-4 working days. If you have selected the SIP option, the chosen amount will get deducted every month starting from the date you have made the payment.

What is the expense ratio of the NJ Balanced Advantage Fund?

An investor in a mutual fund may expect to pay the fund’s manager an annualised percentage of their initial investment, known as the Expense Ratio. Fund returns are affected by the cost ratio, which is expressed as a percentage of the fund’s AUM. If you want to keep more of your money in your pocket, it’s better to invest in a fund with a lower cost ratio.

Who should invest in the NJ Balanced Advantage Fund?

When considering an investment in the NJ Balanced Advantage Fund – Direct Plan, a time horizon of more than 3 years is recommended. This type of fund can be suitable for investors who are seeking a long-term investment.

What are the benefits of investing in the NJ Balanced Advantage Fund?

Investing in the NJ (Nippon India) Balanced Advantage Fund can offer several benefits to investors. As a balanced advantage fund, it invests in both equity and debt instruments, providing investors with the potential for higher returns compared to investing in debt instruments alone.

● Diversification

By investing in a balanced portfolio of equity and debt securities, the fund provides an opportunity for investors to diversify their investments and reduce overall portfolio risk. This is because the equity and debt markets tend to move independently, offering a cushion against market volatility.

● Liquidity

Unlike direct equity investments, the fund provides the advantage of liquidity as units can be easily bought and sold on any business day at the fund’s Net Asset Value (NAV).

● Professional management

The fund is managed by experienced investment professionals who use their expertise to make informed investment decisions on behalf of the fund’s investors. The fund manager continuously monitors the portfolio and makes changes as market conditions warrant, providing the benefit of professional management to individual investors.