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Equity market is volatile by nature.Our dynamic asset allocation model aims to optimise your equity
investments as per the prevailing market situation regularly.
So that you can aspire for better risk-adjusted returns!
Unbiased model basedequity allocation
Attempts to generate better
risk-adjusted returns
Actively managedstock portfolio Equity Taxation
Reliance Balanced Advantage Fund
This product is suitable for investors who are seeking*:
• Long term capital growth.
• Investment in equity & equity related instruments, debt, money market instruments and derivatives.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Reliance Balanced Advantage Fund (An open ended dynamic asset allocation fund)
Keeps adaptingas per the situation...
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Contact your financial advisor for further details or Call 1860 266 0111* | www.reliancemutual.com
Sponsors: Reliance Capital
Nippon Life Insurance Company
*Loc
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Reliance Balanced Advantage FundReliance Balanced Advantage Fund
Rationale for Dynamic Equity Funds
Equities, one of the Best Asset Classes for Long Term Wealth Creation
………………. But Equity returns can be unpredictable and volatile
Common Source: BloombergThis illustration should not be construed as a promise, guarantee on or a forecast of any minimum returns and should not in any way construed to returns of any of Reliance Mutual Fund Scheme. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment.
However, one can make volatility their friend and benefit by:
1. Avoiding Emotional Bias
Rs 1 lakh invested in S&P BSE Sensex on Jan 1, 1980 would have grown to Rs 3.2 crs as of Aug 31, 2019
Over the last decade 50% of the calender years S&P BSE SENSEX delivered less than 10% returns.
Resulting in Lower Investor Returns – ‘Behaviour GAP’‘As the investor attempts to time the markets’
81.0
17.4
-24.7
25.69.0
29.9
-5.0
2.0
28.0
5.9
-55.0
-30.0
-5.0
20.0
45.0
70.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Calendar Year (Jan-Dec)
S&P BSE SENSEX YEARLY RETURNS (LAST DECADE) [%]
Rs 1 Lakh invested in Jan 1, 1980
Rs 3.2 crs as ofAug 31, 2019
Would have Grown to
15.6% CAGR
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Jan-80
Apr-81
Aug-82
Dec-83
Apr-85
Aug-86
Dec-87
Mar-89
Jul-9
0No
v-91
Mar-93
Jul-9
4No
v-95
Feb-97
Jun-98
Oct-99
Feb-01
Jun-02
Oct-03
Jan-05
May-06
Sep-07
Jan-09
May-10
Sep-11
Dec-12
Apr-14
Aug-15
Dec-16
Apr-18
Aug-19
S&P BSE Sensex
Reliance Balanced Advantage Fund
2. Lowering Downside Risk
This is only for illustration purpose.
Hence Losing Less is also equally important criteria for Long Term Wealth Creation
3. Aim to gain from growth potential of Equity
Our Solution aims to benefit from equity growth potential with lower volatility through hedging strategies
A model based Dynamic Asset Allocation Fund that aims to offer Triple Benefits of
1. Emotion Free Asset Allocation - Model Based Asset Allocation
2. Lowers Downside Risk – Through Hedging
3. Long Term Alpha – through Active Stock selection and Sector
Asset Allocation Strategy
• In house proprietary Model to determine unhegded equity allocation
If an investment of Rs 100 becomes Rs 50, it’s a 50% Decline but for the Rs 50 to become Rs 100 again requires a 100% GAIN
Presenting Reliance Balanced Advantage Fund
Reliance Balanced Advantage Fund
• Trend following a unique parameter which aids in maximizing Upside Potential and Limiting downside
• Lower valuations and higher momentum leads to higher equity allocation and vice versa
Fund Strategy:
• Coreassetallocationthrough:ValuationsandTrendfollowing• ModelbasedPortfoliorebalancingfromtimetotimebasis• InvestmentUniverse:Alllistedlargeandmidcapstockswhichhavederivatives.• Largecaporientedportfolio• Welldiversifiedportfolioacrossstocksandsectors.• Debtexposure:Debtportfoliowillbeconservativefocusedontheshorterend.Itwillbecombinationofliquidandshortterm
fixedincomesecurities.
Investment Rationale
• RelianceBalancedAdvantageFundaimstodeliverriskadjustedreturnsacrossmarketcycles• ModelBasedAssetAllocationaimstominimize‘EmotionalBias’andhelpsinimplementing‘BuyonLows&SellonHighs’• Activeequitystockselectiontoaidindifferentialreturns• ‘AlphaPotential’infullmarketcyclethrough: • DownsideRiskManagementinFallingMarkets • UpsideparticipationinRisingMarkets
Source: RMF Research, Bloomberg
Risk factor & Disclaimer: Tradingvolumesandsettlementperiodsmayrestrictliquidityinequityanddebtinvestments.InvestmentinDebtissubjecttoprice,credit,andinterestraterisk.TheNAVoftheSchememaybeaffected,interalia,bychangesinthemarketconditions,inter-estrates,tradingvolumes,settlementperiodsandtransferprocedures.TheNAVmayalsobesubjectedtoriskassociatedwithinvestmentinderivatives,foreignsecuritiesorscriptlendingasmaybepermissiblebytheSchemeInformationDocument.Forfurtherdetails,pleasereferSchemeInformationDocument(SID).
The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable.Thesponsor,theInvestmentManager,theTrusteeoranyoftheirdirectors,employees,affili-atesorrepresentatives(‘entities&theiraffiliates”)donotassumeanyresponsibilityfor,orwarranttheaccuracy, completeness, adequacy and reliability of such information. Recipients of this information areadvisedtorelyontheirownanalysis,interpretations&investigations.Readersarealsoadvisedtoseekindependentprofessionaladviceinordertoarriveataninformedinvestmentdecision.Entities&theiraffiliatesincludingpersonsinvolvedinthepreparationorissuanceofthismaterial,shallnotbeliableinanywayforanydirect,indirect,special,incidental,consequential,punitiveorexemplarydamages,includingonaccountoflostprofitsarisingfromtheinformationcontainedinthismaterial.Recipientaloneshallbefullyresponsibleforanydecisiontakenonthebasisofthisdocument.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.