NJ Mutual Fund has launched its first product – NJ Balanced Advantage Fund – an open-ended dynamic asset allocation fund. The scheme will invest in equity and debt securities through a rules-based proactive investment philosophy, the company said in a release.
The New Fund Offer (NFO) will open for subscription on October 8, 2021 and close on October 22, 2021. This plan will offer both regular and direct plans. The benchmark of the scheme is Nifty 50 Hybrid Composite Debt 50:50 Index.
According to NJ Mutual Fund, the fund will be managed as per proprietary protocols that are tested over different market cycles and longer time horizons.
Rajeev Shastri, Director & CEO, NJ Asset Management Pvt. Ltd. said, “This launch marks the culmination of a process that began a decade ago. Since 2010, our portfolio management services have offered savvy investors a rules-based proactive investing approach, which has earned us one of the largest PMS providers in the country. With our learning as one of India’s largest mutual fund distributors serving retail investors for over 27 years, we are confident that our philosophy will be adopted by them as well.
“We have a factor based approach to investing. Our factors are quality, price, momentum and low volatility. We do not follow the traditional mutual fund approach of qualitative analysis, talking to company management etc. Instead we use these Develop techniques to measure factors. Based on data. This approach and these factors have also proven successful internationally. Our model throws at picking stocks and even dividing asset allocation There is no human intervention after the protocol results. The current unhedged equity exposure represented by our protocol is around 40%. We will use derivatives to maintain 65% of the gross equity exposure at all times. Regular plan expenses The ratio will be 1.85%,” he said.
NJ Group, established in 1994, is one of the largest mutual fund distributors in India. It partners with small mutual fund distributors across India, thereby gaining a national presence. NJ India contributes more than Invest ₹1,15,000 crore for the Current Assets Under Management (AUM) of the Indian Mutual Fund industry through over 20,000 active partners.
NJ launched its Portfolio Management Services (PMS) business in 2010, which manages approx. ₹2,200 crore assets. in an interview with Mint In May 2021, Shastri said that NJ would focus on passive and rules-based products.
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