Fund houses, which adopt different methods in multi -asset allocation fund category, are earning profits during the ongoing decline in the market. While the multi -asset allocation funds introduced in the last two years adopted a huge investment strategy in equity, the selected fund house like Whiteok Capital, Edelweiss, DSP, Quantum and Mahindra Manulife has placed a strategy of investment in more flexible, date. The Nippon India Multi Asset Allocation Fund, presented in the year 2020, also remained due to its unique fund structure.
These schemes are included in some schemes of the category giving positive returns during the last year, whether it is a systematic investment plan (SIP) or a lump sum investment. Apart from this, some fund-off-funds (FOF) multi-asset solutions like Franklin India, ICICI Prudential and Motilal Oswal have also emerged as leading performances during this period.
Statistics of Value Research show that regular plans of Edelvis and Whiteok Multi Asset Allocation Funds have given SIP returns of about 7.5 per cent during the last year, which is much better than the average return of the category -5.8 per cent. However, it is worth noting that many of these schemes are relatively new and do not have long -term track records. Experts emphasize that the selection of multi -asset allocation funds should suit the risk capacity and financial goals of the investor, not only on the basis of recent performance.
Vishal Dhawan, founder and CEO of Plan Ahed Wealth Advisors, said, many types of schemes are given according to the needs of different investors in the multi-asset category. Those who have the ability to take more risk and want to invest for a long time can give priority to equity-oriented schemes, while low-deadline orthodox investors can opt for a date-Haavi fund.
While Edelweiss and Quantum operate their multi -asset allocation funds as a date oriented fund, Whiteok, DSP, Nippon and Mahindra Manulife are considered to be the most accurate in the multi -asset allocation funds, which provide more flexibility for allocation in equity, loans and which. Multi asset allocation funds are hybrid schemes, which allow fund managers to allocate in asset classes based on market conditions. However, this allocation is affected by the tax structure (equity or hybrid) of the fund. Equity taxation requires a minimum of 65 per cent gross equity allocation while hybrid schemes have to be kept at least 35 per cent in equity. Both structures are eligible for taxation of long-term capital gains but the holding period vary: one year for equity schemes and two years for hybrid schemes.
Fund managers and experts reported that multi -failure funds with high flexibility have gained in recent months as they have been able to put a large part of their funds in gold, silver and debt securities. Ramesh Minister, CIO of Whiteok Capital AMC, said, “Our fund is absolutely accurate.” In the last one year, current allocation, strong equity portfolio performance and more investment in gold have increased the return. In addition, investment in RITS, Invits and Arbitrase strategies has increased the success of funds.
DSP MF has described allocation in gold and foreign equity as the reason for the good performance of funds. Aparna Karnik, head of quantitative investment and analytics at DSP Fund, said, “The structure of our funds gives more flexibility to invest in precious metals and foreign equity.” This has caused help to limit negative risks in recent months as about 15 percent of the funds have been allocated to these asset classes. In contrast, equity oriented multi -asset allocation funds are bound by 65 per cent of gross equity allocation.
First Published – March 4, 2025 | 10:15 pm IST
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