Multi asset allocation funds: A one-stop solution for long-term wealth creation

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Multi asset allocation funds have gained immense popularity amongst both seasoned and new investors in recent times and in a candid conversation with Moneycontrol, Chintan Haria, Principal – Investment Strategy, ICICI Prudential Asset Management Company explained why. He also highlighted the nature and benefits of these funds, along with the caveats.

Haria highlighted the appeal of multi asset allocation funds, stating, “It serves as a comprehensive asset allocation tool for long-term wealth creation, offering exposure to various assets within a single investment vehicle,” since this category of funds provide exposure to a minimum of three asset classes, including debt, commodities (such as gold, silver), and equities, each constituting at least 10% of the portfolio.

The flexibility of multi asset allocation funds allows for exposure to commodities, enhancing their appeal. Fund managers can reallocate resources between assets within defined limits, further diversifying the portfolio. Regarding taxation, Haria explained the varying tax implications depending on the fund structure.

Haria addressed risk factors, emphasizing the importance of a long-term investment horizon for reaping diversification benefits.. At the same time, he stressed that multi-asset allocation funds cater to all investor profiles, offering potential for wealth creation while mitigating risks through diversification and professional management.

Click here to watch the entire discussion.

An investor education and awareness initiative

Visit www.icicipruamc.com/note to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website http://www.sebi.gov.in/intermediaries.html For any queries, complaints & grievance redressal, investors may reach out to the AMCs and/or Investor Relations Officers. Additionally, investors may also lodge complaints on https://scores.gov.in if they are unsatisfied with the resolutions given by AMCs. SCORES portal facilitates you to lodge your complaint online with SEBI and subsequently view its status. Further, investors may also lodge complaints through Online Dispute Resolution Portal (‘ODR’) Portal available at https://smartodr.in/login.

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Moneycontrol journalists were not involved in the creation of the article.