LIC Mutual Fund is to launch LIC MF Balanced Advantage Fund, an open-ended dynamic asset allocation fund, which would invest across equity and debt & money market instruments using several parameters like valuation and earning drivers.
LIC MF Balanced Advantage Fund is a hybrid scheme that would follow fundamental driven mathematical model. The model uses interest rates, one year forward price earnings ratio and earnings yield to arrive at the optimum asset allocation level.
In a press release, Dinesh Pangtey, CEO, LIC Mutual Fund said, “Bond yields, in a way, represent the opportunity cost of investing in equities and perception of risk appetite. We would be using this inverse relationship between equity and debt in BAF for switching from equity to debt and vice versa.”
The fund managers for the fund will be Yogesh Patil for equity portion, and Rahul Singh for the debt portion.
