How does a Multi Asset Allocation Fund work?

A Multi Asset Allocation Fund operates on the principle that various asset classes possess distinct characteristics and perform differently during different market cycles. These funds aim to diversify across asset classes, such as equity, debt, and commodities, in order to take advantage of the unique benefits offered by each class.

It actively adjusts the allocation of investments across different asset classes, depending on the prevailing market cycle. The objective is to position your investment to capture opportunities in any market scenario, while providing reasonable returns and minimizing volatility throughout various market cycles.

Why is Asset Allocation important?

The multi-asset allocation gang of Equity, Debt and Commodities (Gold/silver) can help you in three ways:

Balances risk and reward

Investing involves considering both risk and return. Taking on too much unnecessary risk can put your money at stake and hinder your financial goals. Conversely, being overly conservative may result in minimal returns, leaving you short of your goals. For balancing the two you need the power of asset allocation which can give you the right mix of assets of varying risk-return profiles.

Adjusts your portfolio as per market conditions

As we know every asset class performs differently through market cycles. Asset allocation seeks to capitalise on high performers in each market cycle while balancing the overall volatility of the portfolio to get you a winning combination through all market cycles.

Keeps investing disciplined

By eliminating the ‘emotion’ factor from investing decisions, asset allocation keeps you disciplined and on track to achieve financial goals.

Opting for multi asset allocation fund as a part of your core portfolio can give you base-level diversification and help your investments benefit from market volatility.

Reasons to invest in a Multi Asset Allocation Fund

• • Long Term Wealth Creation

  Aims for earning reasonable returns which are consistent over time, giving your investments the potential of building wealth over the long term.

• • Multi-Asset Diversification Benefit

  Provides access to a diversified and balanced portfolio with representation across asset classes.

• • Lower Volatility over the Long Term

  Cushioning equity investments volatility with debt and commodities, this fund has enduring potential in periods of higher uncertainty.

• • Professional Fund Management

  Professional fund management with periodic rebalancing and an active management style, enhances long-term returns potential.

• •Suitable to Any Market Environment

  A balanced multi-asset portfolio with volatility management makes it suitable across market cycles.

• •Tax Efficiency

  By maintaining a minimum 65% equity exposure, this fund can get the benefit of equity tax rates.

Who should invest in a Multi Asset Allocation Fund?

• Investors looking for long-term capital appreciation with a volatility management strategy that can give better risk-adjusted returns.

• Investors looking to build a diversified portfolio of instruments across asset classes of equity, debt, and commodities.

• Investors looking to rely on a professional fund manager’s expertise to meet their asset allocation needs.

Give your investments the advantage of three!

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