Why are multi-asset allocation funds gain traction?
Jun 29, 12:06

With stock markets reeling under multiple headwinds, cautious investors who want to spread their risk seem to have invested in multi-asset allocation funds (MAAF). AMFI data shows that the category received net inflows of Rs 1,900 crore for the nine consecutive months. MAAF are hybrid schemes allocating at least 10% in equity, debt and gold. with a single fund, investors get an opportunity to buying into three different asset classes. Such diversification helps to reduce the overall risk the portfolio faces. Introduced in 2018, the category has not yet delivered impressive returns. Investors can wait and watch till they prove their mettle.

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