Why and when do multi-asset allocations work or will they be beneficial?
The exposure in the case of multi-asset allocation funds is to equities, fixed income or debt as well as gold and therefore that asset mix which shares a negative or lesser correlation tends to reduce risk overall portfolio. Let’s say that right now, due to the growing tension between Ukraine and Russia, stocks have collapsed, the gold portfolio should to some extent protect and curb the huge decline due to the fall stocks, with gold seeing a breakout.
So, here are 2 such funds rated 5 stars by Online Value Research that you can consider for portfolio diversification
Axis Triple Advantage Fund
This fund launched by the mutual fund Axis in 2013 has a return since its inception of up to 11%. The fund has total assets under management of Rs. 1648 crores. The fund’s direct plan has an expense ratio of 0.44%.
The fund’s allocation is primarily made up of equities, followed by debt and commodities, with a distribution such that at all times a minimum of 10% is allocated to each of the asset classes.
The main holdings of the fund are held by ICICI Bank, Infosys, TCS, Bajaj Finance, Avenue Supermarts, etc.
The fund’s 1-year returns are 17.03% over the past year, while the 5-year returns are 14.10%.
SIP investment in the fund can be initiated for Rs. 1000 with a 5 year value of Rs. 10000/month SIP at Rs.8.97 lakh.
Quant Multi-Asset Fund:
This is another multi-asset allocation fund rated 5 stars by Value Research. Assets under the fund are at Rs. 201 crores with an expense ratio of 0.56%. The program has an asset allocation with stocks mostly deployed in sectors such as services, construction, consumer staples, communication, finance, among others.
Sip in the fund can be launched again for Rs. 1000. The 1-year return of the fund was 50.07%, while the 5-year return stands at 18.43%. Similarly, in 5 years, the value of Rs. 10,000 monthly SIPs is now at Rs. 11.34 lakhs.
The above story is just for informational purposes and not a buy recommendation in these mutual funds. We are not a concern of professional financial advisers, so do your analysis and seek help from financial advisers on investment decisions.