JP Morgan Asset Management India Pvt Ltd has launched the opened-ended Balanced Advantage Fund with an investment objective of generating long-term capital appreciation and current income from equity-related and fixed income securities.

The new scheme aims at capitalising on the positive outlook in both equity and fixed income markets while maintaining tax advantage.

The fund will invest 30-60 per cent of the assets in equity, 30-60 per cent in fixed income, and 5-10 per cent in fully-hedged arbitrage exposure.

The new fund will remain open from March 18 to April 15 and will be benchmarked against the Crisil Balanced Fund Index. The minimum initial application amount is ₹5,000 and the fund has an SIP option. There is an exit load of 1 per cent if units are redeemed or switched within 18 months of allotment.

Relevance of balance fund

Nandkumar Surti, MD and CEO of the AMC, said: “The relevance of balanced funds has increased because of the tax treatment of debt funds. Hence, we have introduced the Balanced Advantage Fund to provide our investors with an option of optimal returns and tax advantage as the fund is less volatile and may provide better risk-adjusted returns.”

Harshad Patwardhan, Executive Director, Head – Equities, said: “We believe that this is an opportune time for investors to be invested in equities. We expect improving macro indicators will pave the way for strong corporate earnings growth over the next three to five years.”

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