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1. Edelweiss Balanced Advantage Fund:

The fund has over 70 percent investment into Indian stocks and has over 20 percent investment into debt securities. In comparison to the Nifty benchmark, the fund over a 1-year period has outperformed with returns of 33 percent return.

The top stocks in its portfolio include ICICI Bank, HDFC Bank, Infosys, RIL, Bharti Airtel among others.

Notably, the scheme has been rated 5-star by Value Research also. Rs. 6 lakh worth of investment via the monthly SIP of Rs. 10000 in 5 years has grown in value to Rs. 9.43 lakh. SIP in the scheme can be started for Rs. 500.

2. Nippon India Balanced Advantage Fund Direct Plan

This fund has 65 percent exposure into equities and 25 percent into Debt. Over a 1-year period, the stock has underperformed the Nifty index with return to the tune of 28.5 percent versus Nifty returns of 32 percent.

The mutual fund’s top stock holdings include ICICI Bank, HDFC Bank, Infosys, RIL, HUL, SBI and ITC among others.

With Rs. 10000 per month SIP, the investment in 5 years time has grown to Rs. 8.55 lakh. SIP into the scheme can be started for as less as just Rs. 100.

3. Union Balanced Advantage Fund Direct Growth:

The fund’s 66 percent corpus is deployed into stocks while close to 20 percent is put into debt. The fund’s 1-year return has been at 18 percent. Top stock holdings of the fund include HDFC Bank, ICICI Bank, RIL, Infosys, TCS, HDFC, Bharti Airtel among others.

The mutual fund scheme is also ranked by Value Research Online as 4-star rated scheme. Minimum SIP amount is Rs. 2000.

In 3 years time, Rs. 10000 SIP on a per month basis i.e. Rs. 3.6 lakh has grown to Rs. 4.71 lakh.

Should you be investing in Balanced Advantage schemes?

The dynamic asset or balanced advantage scheme can be the best way out for those facing the tricky situation of redeeming funds at current market highs. Instead to resorting to such a take, investors shall be better off investing in balanced advantage schemes. The allocation herein to stocks is based on the market conditions i.e. exposure to stocks is increased when markets trend higher while it is cut down in an otherwise situation. So, with exposure to both debt and stocks, downside risk as well as volatility over the longer tenure is curtailed to just half.

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Against the IPO issue price of Rs. 1125, Nykaa on its listing day nearly doubled investors money and hit a price of Rs. 2248 per share in the previous session. Post the listing in trade on November 11, 2021, the stock of Nykaa primarily given the profit booking in the stock tumbled to day’s low price of Rs. 2043.75, which is an over 7 percent fall from the previous day’s closing price of Rs. 2205.80 per share.

Does the current decline in Nykaa stock price offers an opportune time to buy into the stock?

Motilal Oswal’s AVP Retail Research believes Nykaa’s key strengths lies in its inventory-led business model for beauty and personal care (BPC) segment, which allows it to offer authentication for all its products and ensures availability and efficient distribution. The online BPC market is highly underpenetrated at just 8% in India and is growing at a very fast pace of 60% p.a. over CY16-20. Given 35% market share of Nykaa in online BPC, we believe Nykaa is rightly placed to tap the high growth digital/online penetration in BPC/Fashion market. We like Nykaa given its leadership position in online BPC market, customer centric approach, profitable tech platform and capital efficient business model

Now given the strong fundamental, the stock is certainly a buy and here we would point out what analysts suggest on Nykaa counter.

Accumulation at current levels suggested on Nykaa stock

Profit booking in the counter of Nykaa is expected to prolong for some more time and it can take the scrip to price levels between Rs. 2000-1800 levels. There is suggested that investors can ‘Accumulate’ Nykaa scrip from here on in a calibrated way.

“Valuation could be a concern for Nykaa shares after a big listing gain. However, Rs. 2000 could act as a support level in the near term. It is difficult to buy after a big gain at opening however fresh investors can accumulate in parts where they can invest 25 per cent at current levels while if it witnesses any correction towards Rs.1800 level then they can add more”- Santosh Meena, Head of Research, Swastika Investmart Ltd is quoted as saying in a report.

For other investors who betted on the scrip for listing gains, they can put a stop loss of Rs. 1950, while still aggressive investor class can continue to ‘Hold’ the scrip for long term.

Target price for Nykaa

The stock of Nykaa is seen to hit a target price of Rs. 3600 in two year time and investor are suggested to buy the scrip at Rs. 1900 levels for the period with a stop loss maintained at Rs. 1770- says GCL Securities -Ravi Singhal.

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