Close your eyes and picture a beautiful garden in full bloom. As you walk through this picturesque garden, you notice a dazzling array of colours and shapes. There are delicate roses in shades of red and pink, vibrant daisies with bright yellow petals, and regal purple irises standing tall and proud. Each flower is unique, with its own fragrance and beauty.

It is the diversity of this garden that makes it so enchanting. The combination of different colours, textures, and scents creates a tapestry of beauty that is impossible to replicate with just one type of flower. More so, a garden with only one type of flower may easily become vulnerable to disease, weather fluctuations, and pests, who can find an easy target in the abundance of a single plantation.

Just like the lack of diversity can leave a stunning garden vulnerable, the lack of diversity in your investment portfolio can increase the vulnerability of your investments.

Power of a Well-Diversified Portfolio

Your investment portfolio is like a garden that requires a diverse selection of assets to flourish. While investing in just one type of asset may yield short-term gains, it may put your portfolio at risk of market fluctuations and unforeseen circumstances.

On the other hand, a well-diversified asset allocation provides a strong foundation for long-term financial success. A diversified portfolio consisting of different asset classes such as equity, debt, commodities and real estate can help you achieve a balanced portfolio that offers potential for growth while minimizing risk.

By spreading your investments across different asset classes, you can protect your portfolio from the potential downfall of any one asset class. For example, equity investments may experience high volatility, while fixed-income instruments tend to be more stable. Meanwhile, commodities like gold or silver can act as a hedge against inflation or other economic changes.

Build a Diversified Investment Portfolio with Aditya Birla Sun Life Multi Asset Allocation Fund

Achieve your goal of building a diversified portfolio with Aditya Birla Sun Life Multi Asset Allocation Fund that combines the power of equity, debt and commodity into a single fund.

The equity component of the fund helps to grab the market opportunities while the debt component of the fund helps to tackle the market volatility and the commodity investment helps to hedge against inflation in every market condition.

It is an open-ended scheme that aims to provide long-term capital appreciation with reasonable returns and lower volatility.

Also Read : What are open ended schemes

Asset Allocation in Aditya Birla Sun Life Multi Asset Allocation Fund

The fund invests 65% - 80% in equity and equity-related instruments, 10% - 25% in debt and money market instruments, 10% - 25% in commodities and up to 10% in units issued by REITs and InvITs. The Scheme may invest in foreign securities upto 20% of the net assets of the Scheme.

Also read: All You Need To Know About Portfolio Diversification

Investment Approach of Aditya Birla Sun Life Multi Asset Allocation Fund

Equity & Equity Related Instruments: The scheme will follow a bottom-up approach to stock-picking. The equity portfolio shall be structured so as to keep risk at acceptable levels and invest across Market cap.

Also read: What are Flexi-Cap Funds? Things You Should Know Before Investing

Debt & Money Market Instruments: The scheme will invest in debt securities and money market instruments issued by corporate and/or state and central government with the aim of controlling volatility and providing cash flows on a continuous basis. Rigorous in-depth credit evaluation of the securities proposed to be invested in will be carried out by the investment team of the AMC for its fixed income investments.

Commodities: The scheme shall invest in the appropriate ETFs with commodity underlying or any other permissible instruments linked with commodity prices.

REITs & InvITs: Investments will be made based on the various factors such as liquidity, sector outlook and returns expectations. The investment across asset class within the stated range will be based on opportunities available in the different asset classes and future outlook for the Markets.

Who Should Consider Investing in Aditya Birla Sun Life Multi Asset Allocation Fund?

The Aditya Birla Sun Life Multi Asset Allocation Fund would be a suitable investment option for individuals who aim to achieve long-term capital appreciation through a diversified portfolio. This fund is particularly appropriate for investors who have a long-term investment horizon.

Know more about: What is SIP?

Key Takeaway

Like a garden with a diverse variety of flowers, each offering its individual advantages and enhancing the overall attractiveness and productivity of the area, a well-structured investment portfolio should also incorporate a balanced mix of assets that can assist in enduring market fluctuations and attaining sustainable financial success over time.

To know more about Aditya Birla Sun Life Multi Asset Allocation Fund, or contact your financial advisor today.

Aditya Birla Sun Life Multi Asset Allocation Fund

(An open ended scheme investing in Equity, Debt and Commodities.)

This product is suitable for investors who are seeking*

• Long term Capital Appreciation
• Investment in equity and equity related securities, debt & money market instruments and Commodities

 

*Investors should consult their financial advisers if in doubt whether the product is suitable for them

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.