Unifi Mutual Fund has introduced its first-ever dynamic asset allocation scheme, the Unifi Dynamic Asset Allocation Fund, designed to generate returns that outpace inflation across different economic cycles.

The New Fund Offer (NFO) opens on March 3, 2025, and will be available for subscription until March 7, 2025. The scheme will reopen for continuous investment from March 21, 2025. The scheme is suitable for investors looking for low volatile, inflation-beating returns over an investment horizon of two years or more, according to a statement.

“The fund management team has complete discretion to allocate 0% to 100% across various segments of debt and equity in any proportion. The flexibility shall be used consciously to limit the downside across economic cycles while striving to achieve consistent real returns over inflation, VN Saravanan, Chief Investment Officer of Unifi Mutual Fund said.

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One of the key advantages of the fund, as per the statement, is its ability to adjust to market conditions without requiring investors to actively switch between asset classes. This ensures a hassle-free investment experience, particularly during fluctuating economic cycles. Also, the fund’s allocation strategy will be guided by near- to mid-term growth-inflation trends, ensuring that investment decisions align with prevailing market conditions.

Investment decisions will be based on four key economic phases: rising growth with falling inflation, rising growth with rising inflation, falling growth with rising inflation, and falling growth with falling inflation, he added.

The fund will maintain a significant allocation to government securities, AAA bonds, hedged equity, and special situations arbitrage across all economic conditions. Meanwhile, exposure to credit instruments and diversified equity will be adjusted based on the economic outlook, increasing during periods of rising growth and reducing when growth projections weaken.