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This Dynamic Asset Allocation Fund Delivered 9.04% Returns On 2 Years SIP - Should You Invest?

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This volatility in the equity market helped the hybrid fund gain edge over other funds. Hybrid Funds have acquired a lot of traction among investors as a preferred investment option. Hybrid funds help investors diversify their investments across many asset classes, allowing them to earn the most profit while taking on the least risk. These funds help investors to divide their assets between stock and debt with these arrangements. Shriram Balanced Advantage Fund is one such fund hybrid fund - the Dynamic Asset Allocation category. This is a new fund, however, it has delivered good returns on investments.

 

Shriram Balanced Advantage Fund - Direct Plan-Growth

Shriram Balanced Advantage Fund - Direct Plan-Growth

The fund was launched on 05 July 2019 by the Shriram Mutual Fund. It is an open-ended small of the category. Under the fund's Direct Plan scheme, the Asset Under Management (AUM) is worth Rs 48.96 crore, whereas, its Net Asset Value (NAV) declared on 18th May 2022 is Rs 13.4117. The expense ratio of the fund is the same as the category average, which is 0.6%. 

It is a highly risky fund. The fund's benchmark is NIFTY 50 Hybrid Composite Debt 50:50. Over a longer period, the fund seeks capital appreciation or generates returns with lesser volatility. The scheme invests in equities, arbitrage opportunities, derivative strategies, as well as debt and money market instruments, where appropriate.

To start investment in this fund, one required a minimum of Rs 5,000 for lump-sum payments and a minimum of 1,000 for additional payments. To start investment via SIP, the minimum investment amount is Rs 1,000. There is no lock-in period in this fund. However, it charges 1% on redemption for units more than 12% of the investment within 365 days of the investment.

Absolute & Annualised Returns
 

Absolute & Annualised Returns

Lump-Sum Investment Returns

Since its inception, it has delivered 10.76% average annual returns.

TenureAbsolute ReturnsAnnualised Returns
1 Year6.99%6.99%
2 Year38.04%17.49%
Since Inception34.12%10.76%

SIP Returns

TenureAbsolute ReturnsAnnualised Returns
1 Year0.19%0.36%
2 Year9.04%8.58%
Portfolio

Portfolio

The fund has a 67.8% equity allocation, with 54.4 per cent in large size stocks, 3.26 per cent in mid-level stocks, and 2.71 per cent in small-cap stocks. 4.33 per cent of the fund's assets are in debt, with 4.33 per cent of those assets invested in very low-risk securities.

The financial, energy, consumer staples, healthcare, and technology sectors make up the majority of the fund's equity holdings. In comparison to other funds in the category, it has less exposure to the Financial and Energy sectors. The fund's debt portion has a very low credit rating, meaning that the borrowers it has lent to are of poor quality.

Reliance Industries Ltd., HDFC Bank Ltd., LIC Housing Finance Ltd., Housing Development Finance Corp. Ltd. (HDFC), and ICICI Bank Ltd. are among the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

Read more about: sip shriram mutual funds mutual fund
Story first published: Thursday, May 19, 2022, 21:33 [IST]
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