JioBlackRock Mutual Fund is using a rules-based model to decide how much of its Balanced Advantage Fund should be invested in equities and which stocks should make the cut. The framework combines global risk sentiment with four local signals before applying six factors to a universe of 250 companies.
The model can move the fund’s equity allocation across predefined brackets ranging from 20% to 90%. It then selects stocks by weighing expected returns against risk, liquidity and trading costs.
