Multi Asset Mutual Fund
Multi Asset Mutual Fund: As the new year is approaching, this question is arising in the minds of investors that which mutual funds will remain on top in 2025? Where will they get strong returns on investment? If you are also looking for the answer to this question, then multi-asset mutual fund can be a better option. Let us know why multi-asset mutual funds can give excellent returns in the new year and reduce risk.
Flexibility with the fund manager
What makes a multi-asset fund different is that it gives fund managers the flexibility to optimize the portfolio. For example, in the equity segment, fund managers can invest in largecap, midcap and smallcap stocks, ensuring the right mix of stability and high growth opportunities. Similarly, in the debt segment, the fund manager can adjust the duration depending on market conditions and invest in government securities or high quality corporate bonds. Multi asset funds allow all options to be fulfilled in a single investment option.
Why invest in multi asset funds?
Multi asset funds provide a one-stop solution for building a complete portfolio. A balanced allocation across asset classes minimizes risks, ensuring consistent and stable returns. Multi asset funds take advantage of the fact that asset classes often perform differently under different market conditions. Historically, data shows that investing in gold along with equity and fixed income allocations improves portfolio performance. This strategy reduced the probability of negative returns, while increasing the probability of returns greater than 10 percent. While past performance does not guarantee future results, the analysis shows that gold is an effective option for diversifying a portfolio and can contribute significantly to portfolio performance.
Let us understand with an example how this fund works?
If you want to reduce risk in investment and want diversification then multi estate fund is the best option. Baroda BNP Paribas Multi Asset Fund is an example of how a well-diversified portfolio with different asset classes can deliver strong risk-adjusted returns, putting you on the path to financial success. Can face any deadlock well. Baroda BNP Paribas Multi Asset Fund combines the growth potential of equity, stability of debt, diversification of gold and income potential of units of REITs/InvITs. This unique blend acts as a multivitamin for your portfolio, providing essential nutrients for continued portfolio health and performance. Apart from this, multi asset funds like Quant Multi Asset Fund Direct-Growth, ICICI Prudential Multi Asset Fund Direct-Growth, UTI Multi Asset Allocation Fund Direct-Growth have given excellent returns.
Since its inception, the fund has delivered strong returns of 19.98 per cent per annum, which is a better performance than its benchmark’s return of 18.91 per cent per annum. Talking about portfolio allocation till November 30, 20024, about 69 percent investment is in equity, 15 percent investment is in gold and 16 percent investment is in debt and cash. The goal of this fund is to take advantage of the uptrends in each asset class, while minimizing portfolio losses during market fluctuations.
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