1 min read.Updated: 15 Sep 2020, 09:47 AM IST Written By Avneet Kaur
A multi-asset fund can be beneficial as they provide the convenience of diversification across different asset classes of Equity, Debt and Gold within a single product.
Don't put all your eggs in one basket, is the most common and the best advise given by experts to investors. That's the basic philosophy of diversification. Different asset classes react differently to economic and market events. While the world grapples with uncertainty amidst the current Covid-19 situation, investors are dealing with their own dilemma....Which asset class is best suited for the current conditions? Those who try to time the markets may get disappointed. There is no way to predict the markets and in which way things will head. If you made predictions for various asset classes, the one thing that stands out is one can't predict with certainty which way the markets will head. The other of course is that there is no consistent outperformer, or underperformer.
There have been years when equity markets had a dream run. Bonds have seen times when they were touted as the most dependable of assets. At times it's Gold that has shined the brightest.