Overview

Irrespective of the market cycle, one question that investors find difficult to answer is - “Is it the right time to invest in equities?”. History tells us that it is near impossible to predict the direction of the markets in the near term. But still, the majority of the investors focus on timing the market. In a falling market, investor hesitate to invest in equities as the belief is that the markets will fall further. Investors wait for a correction in an equity market that is rallying thinking that the market has run up significantly. And as they say, more money is lost waiting for a correction than the actual correction. Staying invested is another challenge as equity markets go through peaks and troughs. If there is a problem, then naturally there has to be a solution. What if there was a product that would “buy low and sell high” i.e. move money from debt to equity when equity market valuations are low and vice versa. PGIM India Balanced Advantage Fund endeavours to do just that – it dynamically manages the asset allocation across equity and debt based on the valuations of the equity markets so that investors can buy low and sell high for long term wealth creation.

PGIM India Balanced Advantage Fund runs on a time-tested asset allocation model that is dynamic. It is a solution for investors who would not like to guess the direction of equities but want to allocate assets to debt and equity in a tax-efficient dynamic asset allocation model and most importantly prefer a journey of equity investing that is much smoother and less volatile.

What is PGIM India Balanced Advantage Fund?

Balanced Advantage Fund (BAF) is an open-ended dynamic asset allocation fund that will dynamically manage the asset allocation across equity and debt, based on the valuations of the equity markets. So that the investors can buy low and sell high in the equity markets for long term wealth creation. The scheme seeks to reduce the volatility by diversifying the assets across equity and fixed income.

Why choose PGIM India Balanced Advantage Fund?

  • An open-ended dynamic asset allocation fund with a floor of minimum 30% equity
  • A fund whose asset allocation is decided by the model based on the time tested DAAAF model to help ‘buy low and sell high’
  • A dynamic model that considers 15 years rolling PE* average as the long-term average PE* to capture changing trends in the equity markets. So, the model always remains relevant compared to static asset allocation models
  • It is a tax-efficient dynamic asset allocation model, as the fund is categorized as an equity-oriented scheme. 65% minimum allocation to equity would be a mix of directional equity and arbitrage
  • An endeavour to deliver reasonable downside protection and lower volatility
  • A solution that helps overcome emotional/behavioural biases for disciplined investing

Who should invest in PGIM India Balanced Advantage Fund?

PGIM India Balanced Advantage Fund Features

Mr. Aniruddha Naha

Senior Fund Manager – Equity

PGIM India Asset Management Pvt. Ltd.

Aniruddha Naha, Senior Fund Manager – Equity, also manages PGIM India Diversified Equity Fund and PGIM India Midcap Opportunities Fund. Aniruddha has done his Masters in Finance & Control and has over 18 years of industry experience in the equity and debt market.

Mr. Kumaresh Ramakrishanan

CIO-Fixed Income,

PGIM India Asset Management Pvt. Ltd.

Kumaresh Ramakrishanan, CIO-Fixed Income, has over 21 years of experience in the Indian Fixed Income Market. He also manages other schemes namely PGIM India Equity Savings Fund (Debt portion), PGIM India Hybrid Equity Fund (Debt portion), PGIM India Arbitrage Fund (Debt portion), PGIM India Overnight Fund (jointly with Mr. Kunal Jain), PGIM India Ultra Short Term Fund (jointly with Mr. Kunal Jain), PGIM India Money Market Fund (jointly with Mr. Kunal Jain), PGIM India Low Duration Fund, PGIM India Short Maturity Fund (jointly with Mr. Puneet Pal), PGIM India Credit Risk Fund, PGIM India Dual Advantage Series –1, PGIM India Fixed Duration Fund – Series AB, AH, AP, AQ, AR, AT & AU, AY, AZ, BA, BB, BC and BE. He is a Bachelor of Engineering (BE) from Bombay University (K J Somaiya College of Engineering) and an MBA in Finance from Bombay University (Narsee Monjee Institute of Management Studies)

Mr. Anandha Padmanabhan Anjeneyan

Fund Manager,

PGIM India Asset Management Pvt. Ltd.

Anandha Padmanabhan is an Equity Analyst and Fund Manager, and also manages the PGIM India Emerging Markets Equity Fund. He has been appointed as Dedicated Fund Manager for Overseas investments w.e.f January 10, 2020. He has over 10 years of experience in the Equity Market. He is an ACA, CFA & FRM.

Instruments Indicative Allocations
(% of total assets)
Risk Profile
High/Medium/Low
Equity & Equity Related Instruments** 65% - 100% Medium to High
Debt & Money Market Instruments 0% - 35% Low to Medium

For more details on asset allocation, please refer Scheme Information Document of the Scheme

CRISIL Hybrid 50+50 Moderate Index

Not Applicable

  • 10% of the units allotted may be redeemed/switched-out to debt schemes without any exit load within 90 days from the date of allotment
  • Any redemptions/switch-outs over the above-mentioned limit would be subject to an exit load of 0.50%, if the units are redeemed/switched-out to debt schemes within 90 days from the date of allotment of units
  • Nil - If the units are redeemed/switched-out after 90 days from the date of allotment of units
  • No exit load will be charged for switches and STP into any open-ended equity scheme, hybrid scheme and fund of funds scheme

Regular Plan and Direct Plan.
Growth, Dividend Pay-out and Dividend Reinvestment

Initial Purchase – Minimum of ₹ 5,000/- and in multiples of ₹ 1/- thereafter.

Minimum of ₹ 1,000/- and in multiples of ₹ 1/- thereafter.

Minimum 5 installments of ₹ 1,000/- each and in multiples of ₹ 1/- thereafter for Monthly and Quarterly SIP.

Minimum SIP Top up amount for Monthly and Quarterly SIP is ₹ 100/- and in multiples of ₹ 1/-

It is a complimentary feature added to the Systematic Investment Plan, available to eligible investors. A Group Life Insurance cover by a Life insurance company chosen by the AMC, shall provide the Insurance Cover to investors subject to such investor being an Eligible Investor*** under the facility without any extra cost. The premium for providing such life insurance cover shall be borne by the AMC.

Product Literature

Product Presentation

How Does The DAAF Model Work

Application Form

This product is suitable for investors who are seeking*:

  • Capital appreciation over a long period of time.

  • Investment in equity and equity related securities including the use of equity derivatives strategies and arbitrage opportunities with balance exposure in debt and money market instruments.

  • Degree of risk – MODERATE

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Riskometer

Moderate – Investors understand that their principal will be at moderate risk.

*PE variation is defined as the deviation of trailing PE of Nifty 50 Index ( observed on a 20 days moving average basis) from 15 year rolling average PE of Nifty 50 Index

***For terms and condition please refer disclosure document of Smart SIP facility

*“PGIM India Balanced Advantage Fund” offered by PGIM India Asset Management Private Limited (erstwhile DHFL Pramerica Asset Managers Private Limited) or its affiliates is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL) and its affiliates. IISL and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for a particular purpose or use) to the owners of “PGIM India Balanced Advantage Fund” or any member of the public regarding the advisability of investing in securities generally or in the “PGIM India Balanced Advantage Fund” linked to Nifty 50 Index or particularly in the ability of the Nifty 50 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty 50 Index in the Scheme Information Document.” The information contained herein is provided by PGIM India Asset Management Private Limited (erstwhile DHFL Pramerica Asset Managers Private Limited) (on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance* (or such earlier date as referenced herein) and is subject to change without notice. The AMC has no obligation to update any or all of such information; nor does the AMC make any express or implied warranties or representations as to its completeness or accuracy. There can be no assurance that any forecast made herein will be actually realized. These materials do not take into account individual investor’s objectives, needs or circumstances or the suitability of any securities, financial instruments or investment strategies described herein for a particular investor. Hence, each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard. The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein. These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Distribution of these materials to any person other than the person to whom it was originally delivered and to such person’s advisers is unauthorized, and any reproduction of these materials, in whole or in part without the prior consent of the AMC, is prohibited. The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/disinvestment in the securities market and/or suitability of the fund based on their specific investment objectives and financial positions and using such independent advisors as they believe necessary.

© 2021 Prudential Financial, Inc. (PFI) and its related entities. PGIM, the PGIM logo, and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.