Franklin Templeton collects nearly Rs 800 crore for its balanced advantage fund

Franklin Templeton Mutual Fund (FT MF) has collected Rs 780 crore-Rs 800 crore in flows for its balanced advantage fund's new fund offer (NFO), according to industry sources.

Mirae Mutual Fund had also recently launched its balanced advantage fund, which collected Rs 746 crore of flows in its NFO, through a mix of sales from bank branches and mutual fund distributors.

Sources suggest that the flows for Franklin India Balanced Advantage Fund (FIBAF) came in largely through mutual fund distributors. The new fund offer (NFO) had closed for subscription on August 30.

FIBAF’s NFO opened on August 16. Moneycontrol was first to report that FT MF's first fund launch since the debt funds crisis will be on August 16.

While the wind-up episode is still fresh in investors’ minds, FT MF has now largely paid back the dues to unitholders.

How FIBAF will work?

FIBAF will keep majority of its equity allocation in large caps.

The exposure to large caps will range between 60-85 percent of the equity corpus, while exposure to mid- and small-caps would be in the range of 15-40 percent.

On the debt side, the fund will invest in higher-rated debt securities on the credit risk curve, but within that the fund will take interest rate views.

FIBAF and Mirae's BAF enters a crowded category where there are already 25 schemes. Five new BAFs were launched in 2021. BAF is the largest category in the hybrid segment, managing investor assets worth Rs 1.86 trillion.