THE MARKET

MIGHT BE
TOPSY-TURVY.
YOUR PORTFOLIO
NEED NOT BE.

BALANCED ADVANTAGE FUND

(An Open Ended Dynamic Asset Allocation Fund)

NFO opens: 9th January, 2019 | NFO closes: 23rd January, 2019
This product is suitable for investors who are seeking*:
• Capital Appreciation along with generation of income over medium to long term period.
• Predominant investment in equity and equity related instruments as well as in debt and
money market instruments.
* Investors should consult their financial advisors if in doubt about whether the product
is suitable for them.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Volatility in Equity Markets and the need for Asset Allocation Products
Volatility is an inherent element of equity markets. Investors in equity funds are advised to invest systematically and
with a long-term investment horizon to tide over market volatility. In addition, asset allocation is of primary importance
for a more satisfactory equity investing experience. However, many investors may require an equity-oriented product
which has inbuilt asset allocation feature. For such investors, the choice is between equity oriented balanced funds and
balanced advantage funds.

Balanced Funds vs Balanced Advantage Funds

There is a clear distinction between equity oriented balanced funds and balanced advantage funds. Equity oriented
balanced funds maintain a fixed allocation to Equity & Debt asset classes. Typically, such equity oriented balanced funds
maintain minimum 65% allocation to equity. However, even a 65% allocation to equity may not be palatable to investors
during market volatility. This is where balanced advantage Funds come into play.

Balanced advantage funds, allow adjustment of equity allocation depending upon fund manager's assessment of
market volatility. Such adjustment of equity allocation could be a discretionary call by the fund manager or based on an
asset allocation model.

Equity Savings Funds vs Balanced Advantage Funds

• Equity Savings Funds make use of Equity, Arbitrage and Debt investments to provide returns to investors with lower
volatility compared to Balanced funds.

• However, Equity Savings Funds generally have lower unhedged equity exposure between 15-45% as compared to
Balanced Advantage Funds which have the flexibility to invest up to 80% in unhedged equities.

• This provides Balanced Advantage Funds an edge to benefit from a rising market through higher equity exposure as
compared to Equity Savings Funds

Risk Return Matrix

HIGH

Equity
RISK

Balanced Funds
Balanced Funds
Equity Advantage
Savings Funds
Debt Funds
Funds

LOW
RETURNS HIGH
Why Balanced Advantage?
Investment with Inbuilt Asset Allocation Discipline

The basic goal of the asset allocation is to be able to maneuver the investment allocation as per prevailing market
conditions to make money work harder. It follows disciplined investment approach to overcome emotional reaction to
market trends.

Balanced advantage funds will change the asset allocation as per strategies adopted by the fund. Investors, hence
doesn't have to worry about timing the market and getting the allocation right, fund does that for them in a disciplined
manner.

Efficient Allocation between Asset Classes

Apart from being able to change asset allocation as per prevailing condition, the fund gets the allocation right with right
equity allocation for capital appreciation potential, hedged equity/arbitrage and debt exposure for regular income
potential.

Typically, more than 65% of the fund will have equity allocation with/without hedged equity/arbitrage exposure to
ensure tax efficiency while the net long (unhedged) equity exposure may vary depending upon asset allocation
criteria/asset allocation model.

Tata Balanced Advantage Fund (TBAF)

The fund uses a smart proprietary asset allocation model for allocating assets between equity and debt. The fund's
asset allocation model relies on valuation, trend and volatility parameters to decide allocation to equity.

Hedged
Equity/
Arbitrage

Why Tata Balanced Advantage Fund?

Actively managed Equity Allocation

• Closely monitors the market behaviour and shifts the allocation between Equity and Debt

• Active allocation to equity & equity related instruments as per proprietary asset allocation model, the fund will
maintain minimum 65%-100% allocation to equity including hedged equity/arbitrage exposure and debt allocation
between 0%-35%.

Ideal for Investors seeking a valuation aware equity-oriented scheme

• Investments in a mix of equity, hedged equity/arbitrage and debt portfolios.

• The scheme will endeavour to capture market trends and manage judicious mix of debt & equity, making sure the
fund always has equity taxation benefit.

Diligent Risk Management

• Diversification across stocks/sectors.

• Liquidity of stocks/bonds play an important role in risk management.

• Regular monitoring of exposure limits.

Scheme Details:

Scheme Name TATA BALANCED ADVANTAGE FUND

NFO Dates 9th January, 2019 to 23rd January, 2019

Investment Objective The investment objective of the Scheme is to provide capital appreciation and
income distribution to the investors by using equity derivatives strategies, arbitrage
opportunities and pure equity investments.

Type of Scheme An open ended dynamic asset allocation fund

Fund Manager Equity - Rahul Singh & Sonam Udasi. Hedged Equity/Arbitrage - Sailesh Jain.
Debt -Akhil Mittal

Benchmark CRISIL Hybrid 35+65 - Aggressive Index

Min. Investment Amount Rs. 5,000/- and in multiple of Re.1/- thereafter

Load Structure Entry Load: N.A.; Exit Load: 1% of the applicable NAV, if redeemed on or before
expiry of 365 days from the date of allotment.

Plans & Options Regular & Direct Plans with Growth & Dividend Options

Distributed by:

Toll Free Number: 1800-209-0101 | SMS: TMF to 57575

www.tatamutualfund.com