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Take it easy through market ups and downs
UTI Balanced Advantage Fund is an open-ended dynamic asset allocation fund.
UTI Balanced Advantage Fund is a disciplined, model driven asset allocation solution, that dynamically rebalances portfolio between equity and fixed income based on valuations as per prevailing market conditions.
UTI Balanced Advantage Fund focuses on the three D’s to provide risk-adjusted tax efficient returns:
- Diversification – Mix of Equity & Fixed Income
- Dynamic – Dynamic rebalancing of the portfolio
- Discipline – Model guided asset allocation
Redemption/ switch out within 12 months from the date of allotment –i) up to 10% of the allotted units – Nil ii) beyond 10% of the allotted Units - 1.00 %. Redemption/ switch out after 12 months from the date of allotment – Nil
SIP/SWP/STRIP/Flexi STRIP/Pause SIP
The scheme intends to provide long-term capital appreciation and income by investing in a dynamically managed portfolio of equity and debt instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
UTI Balanced Advantage Fund is a disciplined, model driven asset allocation solution that dynamically rebalances portfolio between equity and fixed income based on valuations as per the prevailing market conditions.
An open-ended dynamic asset allocation fund
- Professionally managed
- Disciplined approach
- Factor driven model-based asset allocation strategy
- Dynamic portfolio rebalancing
- Eliminate behavioral biases
- Tax efficient returns
THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING*:
- Long-term capital appreciation and income
- Investment in a dynamically managed portfolio of equity and debt instruments
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
- Investors looking for long term wealth creation
- Investors looking for a diversified portfolio of equity and fixed income
- Investors looking for a dynamic asset allocation solution to minimise risk of market volatility
- Investors seeking better risk-adjusted and tax efficient reasonable returns
• Portfolio Diversification – Intends to invest 30-90% of the portfolio in net equity; 10-35% of the portfolio in fixed income
• Disciplined approach – Disciplined model-driven approach to dynamic asset allocation and portfolio rebalancing
• Eliminates behavioural biases – Model guided asset allocation based on valuations to eliminate biases
• Professionally managed – Managed by a team with vast experience in research & portfolio management
• Tax efficient – Endeavors to provide equity taxation*
*Note: The asset allocation in the scheme shall be managed dynamically as per stated Investment objective, investment strategy, asset allocation in Scheme Information Document (SID), with an endeavor to maintain at least 65% of the total portfolio of the fund in domestic equity & equity related instruments (based on annual average of the monthly averages of opening and closing figures) to attract equity taxation benefits as per prevailing tax laws. The fund will take exposure to arbitrage to manage gross equity exposures at 65% of total portfolio.
UTI Balanced Advantage Fund (UTI BAF) is a model guided asset allocation strategy that dynamically manages allocation between equity and fixed income. This approach brings in discipline and overcomes emotional biases associated with market volatility. The fund endeavors to deliver better risk-adjusted returns across market cycles to help investors achieve their financial goals over the medium to long-term.
The UTI BAF Model assesses four factors that have been proven for having correlation with the market forward returns to determine the net equity allocation. These factors are:
- Valuation based factors: Have negative correlation with market forward returns
a) 1Y Forward Price to Earnings (PE) Ratio – Higher the P/E ratios, lower the equity allocation
b) TTM* Price to Book (PB) Ratio – Higher the P/B ratios, lower the equity allocation
- Yield based factors: Have positive correlation with market forward returns
a) TTM* Dividend Yield – Higher the dividend yield, higher the equity allocation
b) Yield Gap – Yield gap is difference of Equity Yield (1/1 year Forward Nifty 50 P/E Ratio) and Bond Yield (10-year GSEC Yield). Higher the yield gap relative to history, higher the equity allocation
*TTM – Trailing 12 months
