Stories
Multi-Asset Funds: The New Safe Haven for Investors Amid Market Risks
- •Investors are increasingly turning to multi-asset allocation funds as a 'defensive growth' option during stock market uncertainty, especially with gold not yielding high profits.
- •According to AMFI data for August, multi-asset allocation funds attracted a net inflow of Rs 3,671 crore, closely trailing arbitrage funds.
- •These funds invest in at least three asset classes (typically equity, debt, and gold/silver) with a minimum of 10% in each, offering strategic balance.
- •Leading multi-asset funds like Nippon, White Oak Capital, SBI, and ICICI Prudential have delivered strong 3-year CAGR returns ranging from 14.10% to 18.50%.
- •Multi-asset allocation funds provide an all-weather portfolio, with fund managers actively managing asset mix to protect against market downturns and reduce investor hassle.
Key Questions Answered
Multi-asset allocation funds are a category of hybrid mutual funds required to invest in at least three distinct asset classes, such as equity, debt, and gold or silver, with a minimum allocation of 10% in each. Fund managers actively manage and adjust this asset mix based on prevailing market valuations and trends, providing investors with a diversified, all-weather portfolio through a single scheme.
According to data released by the Association of Mutual Funds in India (AMFI), multi-asset allocation funds recorded a net inflow of Rs 3,671 crore in August. They ranked second in attracting investments within the broader hybrid fund category, narrowly trailing arbitrage funds which brought in Rs 3,789 crore.
The Nippon Multi Asset Allocation Fund leads the category, delivering an impressive return of 18.50% CAGR over a 3-year period. Other similar funds from White Oak Capital, SBI, and ICICI Prudential delivered 3-year returns of 16.70%, 14.80%, and 14.10% respectively.
