NJ Mutual Fund to launch balanced advantage fund

NJ Mutual Fund, which recently got MF license from SEBI, will be launching a balanced advantage fund (BAF).

The new fund offer (NFO) will open on October 8, 2021.

The fund will follow a rule-based investment strategy, as per NJ MF's filings.

The role of a fund manager is limited in a rule-based fund, as the scheme buys and sells securities on the basis of certain pre-defined rules. In NJ's case, these rules have been developed in-house.

“This launch marks the culmination of a process that began over a decade ago. Since 2010 our portfolio management services have offered rule-based active investment approaches to discerning investors, which has made us among the largest PMS providers in the country,” said Rajiv Shastri, director and chief executive officer at NJ MF.

NJ, which is also the country’s largest MF distributor in commission terms, will be able to take advantage of its wide distribution network to grow its MF business over time.

Also read: NJ India: The distributor of schemes will now run a data-driven mutual fund house

Soon, several new fund houses could be launching their funds in the market.

Flipkart co-founder Sachin Bansal-backed Navi MF has filed for ten new funds with SEBI.

Recently, the discount brokerage Samco Securities got the approval from SEBI to start its MF business.