Canara Robeco Mutual Fund has launched Canara Robeco Balanced Advantage Fund, an open-ended dynamic asset allocation fund aiming to generate alpha when markets are doing well and reduce downside risk in times of bad market periods.

The new fund offer or NFO of the scheme is open for subscription and will close on July 26.

"Canara Robeco Balanced Advantage Fund will dynamically alter the exposure to equities and debt aiming for long term capital appreciation with income generation. The fund may be suitable for mutual fund investors seeking a method for dynamically altering their exposure to equity. The fund may also be suitable for those investors who are trying to moderate their participation in market rallies while mitigating potential losses," said Rajnish Narula, CEO, Canara Robeco Mutual Fund.

The asset allocation in the fund will be guided by a proprietary three-factor asset allocation model that has been back-tested over a more than 20-year period.