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360 ONE Asset Launches Balanced Hybrid Fund

In Business
September 05, 2023

360 ONE Asset Management Limited (formerly known as IIFL Asset Management Limited) (“360 ONE Asset”), announced the launch of ‘360 ONE Balanced Hybrid Fund.’ The fund is the first balanced hybrid fund in the category. It is an open-ended balanced scheme investing in equity and debt instruments.

The New Fund Offer (NFO) will remain open from 4 th Sep 2023 to 18 th Sep 2023. The minimum application amount is Rs. 1000 (and in multiples of Re.1 thereafter.)

360 ONE Balanced Hybrid Fund provides investors access to both equity and fixed income asset classes along with the benefit of flexibility as fund managers would have the ability to dynamically adjust the allocation within the range of 40-60% for both equity and debt, to align investments with prevailing market conditions.

The equity portfolio shall be based on the SCDV (Secular-Cyclical-Defensives-Value Traps) framework which enables the Fund to invest across different market segments. It adopts a bottom-up stock selection approach, based on in-depth fundamental research to capitalise on opportunities. The fixed income allocation is positioned as an accrual-driven strategy with a focus on maintaining high credit quality (80% – 100% AAA allocation) and low interest rate risk.

This fund is ideal for those with a long-term investment horizon (3 years plus), and are seeking a balanced mix of equity and debt exposure. It aims to minimise volatility and explore investment avenues beyond conventional debt funds.

Commenting on the fund, Anup Maheshwari, Co-founder & CIO, 360 ONE Asset, said, “We are excited to launch the first scheme under the balanced hybrid category. This comes at an opportune time from an asset allocation perspective considering market valuations are on the higher side. We believe that this fund is well-positioned to meet the needs of investors who are looking for a balanced investment approach with the objective of generating favourable risk-adjusted returns.”

Mayur Patel, Fund Manager, Listed Equity, 360 ONE Asset, said, “The introduction of 360 ONE Balanced Hybrid Fund enables us to take advantage of opportunities across market capitalizations and sectors. The fund should benefit from the SCDV investment framework, which has a track record across our other equity funds. The fundamentals of the economy remain strong, and corporate earnings are expected to grow at a healthy pace. We remain positive on the long-term prospects of the Indian equity market.”

Milan Mody, Fund Manager, Fixed Income, 360 ONE Asset, said, “Amid global uncertainty, domestic macros remain strong, both externally (current account deficit) and internally (fiscal consolidation and capex focus). We believe we are at the peak of the rate hike cycle and the risk–reward has turned in favour of careful deployment into certain areas of the yield curve offering reasonable risk-adjusted returns. We intend to play a high accrual strategy with a conservative duration, with reasonable credits offering relatively stable returns as a cushion during market volatility.”

Mayur Patel and Milan Mody are the fund managers of the scheme and have more than 18 years of experience in the industry.