Nippon India Multi Asset Fund has given a return of 32.26% in a year. SBI Multi Asset Fund has given a return of 28.24% in a year. Multi asset funds invest in multiple options simultaneously.
New Delhi. If you are looking for an option that is away from market risk and gives returns along with the full benefits of stocks, then we will clear your confusion. On one hand, the stock market is reaching record highs and on the other hand, it is also falling in between. In such a situation, market experts are also predicting further decline in the coming months. On the other hand, investors investing in mutual funds are confused because they have incurred losses and their future looks unclear. In such a situation, you also need an option that can generate profits from all four directions. Its best option can be a multi asset fund, which invests money in not one or two but four types of assets and the chances of loss are greatly reduced.
If we look at the figures, it is known that even in the falling market, multi asset funds have given excellent returns in the last one year. Nippon India Multi Asset Fund and SBI Multi Asset Fund have given returns of 32.26% and 28.24%. Kapil Hulkar of Equation Financial Services says that a true multi asset fund is one that has a diversified asset allocation portfolio. Investors have to ensure that they choose a multi asset fund that does not change their asset allocation. Only then will one get the true benefit of multi asset funds.
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Why is multi asset investing important
Market rules say that asset classes follow their own cycles. Predicting such cycles is never easy. Therefore, not diversifying your portfolio can also lead to investment losses. Mutual fund analysts believe that investors with a well-diversified portfolio are far safer. This is where investing in multi asset funds becomes important.
Where does this fund invest money
Multi asset funds are hybrid funds that invest in different asset classes such as equity, debt, commodities and commodities like gold and silver etc. As per SEBI regulations, multi asset funds are required to invest a minimum of 10% of their total AUM in each of three or more different asset classes to diversify their asset allocation. To get maximum benefit from multi asset funds, investors need to ensure that their money is invested in multiple places.
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For example, Nippon India Multi Asset Fund invests in three asset classes – equity, commodity and debt. The fund also has exposure to international equities even though SEBI has banned new exposure to global markets from April 1 this year. In such a situation, the existing investment from this fund also benefits as the fourth asset class. This means that this fund earns profit by investing in 4 types of assets.
Tags: Business news, Investment tips, Mutual Funds, Share market
FIRST PUBLISHED : May 27, 2024, 19:47 IST