Over a period of three years, multi-asset funds returned 14%, while Nifty returned 10%.
Given these returns, should investors demand diversification and balanced risk, consider multi-asset funds as part of their strategy?
It should be noted that a multiple-gravation fund connects various asset classes within a single portfolio, such as equity, bonds, gold, silver and international securities.
The purpose of this diversification is to spread risk in various market areas.
Santosh Joseph, CEO of sprouted investor services, stated that multi-asset funds provide investors the benefits of management of single investment products including several asset classes.
This approach simplifies the investment process by consolving various assets under a fund.
According to Joseph, fund house assets determine a structured formula for allocation, adjusting exposure based on market conditions to manage risk and returns.
To ensure diversification of SEBI rules, each of at least three different asset classes requires multiple-transactions money to allocate minimal 10% of its corpus. These funds are considered suitable for a wide range of investors due to their diverse nature.
However, it is important for investors to note that multi-asset funds cannot always perform better from the market during the period of strong market rallies operated by specific areas.
Also read Budget 2025: Gold Market Brace for possible duty hike
For full interview, watch with video
Also read LIC MF launched Multi Asset Allocation Fund: Major things to know before investing in NFO
,
