It invests in both equities and fixed income, adjusting allocations between these asset classes based on a predefined model. The fund aims to capture upside during bull markets and protect against downside during bear markets using the PROCYCLICAL EEHI model, according to the fund manager.
The scheme, which was launched on August 20, 2009, has generated a return of 11.34% since its inception. Over the past 10 years, it has generated a return of 11.94%. Over the past five and three years, the scheme has achieved returns of 16.62% and 13.30% respectively.
If an investor had taken a monthly SIP of Rs 10,000 in the plan since inception, the current value would be Rs 49.67 lakh, with an XIRR of 12.49%.
Over the past 10 years, the SIP yield was 13.42%, resulting in a present value of Rs 2,40,000. Over the past five years, a monthly SIP of Rs 10,000 would have grown to Rs 91,636, with an XIRR of 17.15%. A lump sum investment of Rs 1 lakh made at the inception of the fund would have grown to Rs 5.01 lakh today, reflecting a CAGR of 11.34%. Based on annual returns since inception (2009-2024), the scheme has generated negative returns only in 2011 and 2016. The highest return since inception was about 29.02% in 2014.
The scheme is managed by Bhavesh Jain and Bharat Lahoti (equity investments) and Rahul Dedhia (debt investments). The minimum investment amount is Rs 100 per application, with additional investments in multiples of Rs 1. The scheme is based on the NIFTY 50 Hybrid Composite Debt 50:50 index.
Approximately 10% of the allocated units can be redeemed without any exit charge within 90 days from the date of allocation. Any redemption in excess of this limit within 90 days will be subject to the following exit charge:
• If redeemed or exchanged before 90 days have passed from the date of unit allocation: 1.00%
• If redeemed or exchanged after 90 days from the date of unit allocation: NONE
The scheme is suitable for investors seeking to build wealth over the long term while mitigating capital erosion over the medium term. It is ideal for those primarily seeking equity and equity-related securities, including arbitrage opportunities, with a balanced exposure to debt and money market securities.
“With a 15-year track record, the Edelweiss Balanced Advantage Fund has delivered returns comparable to the Nifty 50, with much lower market volatility. Using a market momentum-based asset allocation model, the fund increases equity exposure in rising markets and reduces it in falling markets, capturing upside and minimising downside to achieve optimal performance,” said Bhavesh Jain, Co-Head of Factor Investing at Edelweiss MF.
He also mentioned, “Since the fund’s inception, it has provided investors with 84% of the Nifty50’s returns while experiencing only 49% of the index’s volatility.”
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.