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Nippon India Mutual Fund is launching a new fund offer (NFO) for Nippon India Asset Allocator Fund of Funds. The opening date of the NFO is January 18, 2021, and the closing date is February 01, 2021.

What is an Asset Allocator Fund of Funds?

Let’s understand Fund of Funds and Asset Allocation Funds first:

  1. What is a Fund of Funds?

    Mutual funds invest in a basket of securities in a manner that helps them achieve the objective of the scheme. A regular mutual fund invests in various assets like equities, bonds, gold, etc. A Fund of Funds or FoF is a mutual fund that invests in other mutual funds instead of stocks/bonds, etc. FoFs can invest in any type of mutual fund schemes like debt funds, exchange-traded funds (ETFs), index funds, commodities, or international funds.

  2. What is an Asset Allocation Fund?

    An asset allocation fund is a type of mutual fund that has a diversified portfolio of investments across different asset classes like equity, debt, gold, real estate, etc. The asset allocation fund can choose the asset classes it plans to invest in in a fixed or variable manner.

With these definitions clear, an Asset Allocator Fund of Funds is a mutual fund that invests in a diversified portfolio of investments across mutual funds focused on different asset classes like equity funds, debt funds, gold funds, etc.

Investment Objective

The Nippon India Asset Allocator Fund of Funds is an open-ended fund of funds scheme that seeks to achieve long-term capital growth by investing in equity-oriented schemes, debt-oriented schemes, and gold ETF of Nippon India Mutual Fund. 

Indicative Asset Allocation

Here is the proposed asset allocation for the scheme:

Invest in direct mutual funds

  • Enjoy 0% commission
  • SIP starting at ₹500
Instruments Indicative Allocation (% of net assets) Risk Profile
Minimum Maximum High/Medium/Low
Equity-Oriented Schemes 0% 100% High
Debt-Oriented Schemes 0% 100% Low to Medium
Gold ETF 0% 25% Medium-High
Money Market Instruments & Units of Liquid Schemes 0% 5% Low to Medium

Benchmark

Since the Nippon India Asset Allocator Fund of Funds scheme is designed to invest across asset classes with the objective of achieving long-term growth, the fund house has chosen CRISIL Hybrid 50 + 50 – Moderate Index as the benchmark for the Fund.

CRISIL Hybrid 50 + 50 – Moderate Index

This index endeavours to track the performance of a hybrid portfolio of S&P BSE 200 (50%) and CRISIL Composite Bond Fund Index (50%). It tries to capture the returns on a balanced portfolio of equity and debt. It has been in existence since 2002.

Fund Details

The Nippon India Asset Allocator Fund of Funds is available as a Regular Plan or Direct Plan. Further, investors can choose between a Growth and Dividend Plan under Regular/Direct Plans. Also, under the Dividend Plan, investors can choose between the Dividend Payout option and the Dividend Reinvestment option.

Other Details

Scheme Name Nippon India Asset Allocator Fund of Funds
Type of Scheme An open-ended fund of funds scheme investing in equity-oriented schemes, debt-oriented schemes, and gold ETF of Nippon India Mutual Fund.
Benchmark CRISIL Hybrid 50 + 50 – Moderate Index
NFO Dates Opening Date – January 18, 2021

Closing Date – February 01, 2021

Fund Managers Mr. Prashant Pimple

Mr. Ashutosh Bhargava

Minimum Amount for Application in the

NFO

Rs. 5,000/- and in multiples of Re.1 thereafter
Additional Purchase Rs. 1,000/- and in multiples of Re. 1 thereafter
Minimum SIP Application Amount
  1. Rs.100/- per month and in multiples of Re. 1/- thereafter for a minimum period of 60 months
  2. Rs.500/- per month and in multiples of Re. 1/- thereafter for a minimum period of 12 months
  3. Rs.1000/- per month and in multiples of Re. 1/- thereafter for a minimum period of 6 months
Minimum Redemption Amount Redemptions can be of a minimum amount of Rs.100 or any number of units. However, for redemptions made by means of the Nippon India Any Time Money Card, there is no minimum amount restriction.
Entry Load Not Applicable
Exit Load 10% of the units allotted shall be redeemed without any exit load, on or before completion of 12 months from the date of allotment of units. 

Any redemption in excess of 10% of units in the first 12 months from the date of allotment shall be subject to the following exit load:

  • 1%: if redeemed or switched out on or before completion of 12 months from the date of allotment of units.
  • Nil: thereafter

Also, the redemption of units is done on a First In First Out (FIFO) Basis.

Plans Each plan is available as a Regular or Direct plan.
Options Growth and Dividend options (Payout and Reinvestment)

Fund Managers

Prashant Pimple – Manager Fixed Income

Prashant Pimple comes with a strong 19 years of experience in capital markets. He started his professional journey as a Management Trainee with Small Industries Development Bank of India, moved on as a Trader (Fixed Income) with the Saraswat Co-operative Bank Limited, Assistant Manager handling the fixed income part of the treasury with the Bank of Bahrain and Kuwait, Fund Manager of Debt Schemes with ICICI Bank Limited, Fund Manager of Debt Schemes with Nippon Life India Asset Management Limited, Portfolio Manager of Debt Schemes with Fidelity Mutual Fund, and finally as a Senior Fund Manager with Nippon Mutual Fund.

Other funds managed by him are:

  • Nippon India Dynamic Bond Fund
  • Nippon India Short Term Fund
  • Nippon India ETF Long Term Gilt
  • Nippon India Nivesh Lakshya Fund
  • Nippon India Banking & PSU Debt Fund
  • Nippon India Balanced Advantage Fund
  • Nippon India Retirement Fund – Income Generation Scheme
  • Nippon India Retirement Fund – Wealth Creation Scheme
  • Nippon India Gilt Securities Fund
  • Nippon India ETF Nifty CPSE Bond Plus SDL-2024 Maturity

Ashutosh Bhargava

Ashutosh Bhargava comes with a rich experience of over 15 years in the capital markets in India. His professional journey includes the role of an economist with JP Morgan India Services Private Limited and Reliance Capital Limited, an Investment Strategist and Fund Manager with Nippon Life India Asset Management Limited, and finally as Fund Manager with Nippon Mutual Fund.

Other funds managed by him are:

  • Nippon India Quant Fund
  • Nippon India Multi-Asset Fund
  • Nippon India Balanced Advantage Fund
  • Nippon India Tax Saver (ELSS) Fund
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