This dynamic asset allocation fund has generated returns of 9.04% over 2 years SIP – Should you invest?

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Shriram Balanced Advantage Fund – Direct Plan-Growth

The fund was launched on July 5, 2019 by the Shriram Mutual Fund. It is a small open category. Under the fund’s direct plan, Assets Under Management (AUM) is worth Rs 48.96 crore, while its Net Asset Value (NAV) reported on May 18, 2022 is Rs 13.4117. The fund’s expense ratio is the same as the category average of 0.6%.

It is a very 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 lower volatility. The fund invests in equities, arbitrage opportunities, derivative strategies, as well as debt securities and money market instruments, where applicable.

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

Absolute and annualized returns

Absolute and annualized returns

Flat-rate returns on investment

Since inception, it has generated average annual returns of 10.76%.

Mandate Absolute returns Annualized returns
1 year 6.99% 6.99%
2 years 38.04% 17.49%
Since the creation 34.12% 10.76%

SIP Returns

Mandate Absolute returns Annualized returns
1 year 0.19% 0.36%
2 years 9.04% 8.58%
Wallet

Wallet

The fund has a 67.8% equity allocation, including 54.4% in large stocks, 3.26% in mid-tier stocks and 2.71% in small-cap stocks. 4.33% of the fund’s assets are leveraged, 4.33% of these assets being invested in very low-risk securities.

The financials, energy, consumer staples, healthcare and technology sectors make up the majority of the fund’s equity holdings. Compared to other funds in the category, it has less exposure to the financials and energy sectors. The debt portion of the fund has a very low credit rating, meaning the borrowers it has lent to are low 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.

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