Multi Asset Investing

Multi-asset funds saw AUM surge 487% to ₹2.07 lakh crore in three years, compared with 115% growth for flexi-cap funds. But should investors hold both, switch to multi-asset or choose only one? Experts explain the key factors to consider.

According to data from the Association of Mutual Funds in India (AMFI), multi-asset allocation funds attracted inflows of ₹4,810.76 crore in June, up from ₹3,928.51 crore in May, reflecting a 22.46% MoM increase.

Multi-asset allocation funds provide diversification by investing across at least three asset classes, helping reduce dependence on any single investment. However, each fund follows a different portfolio allocation strategy, resulting in varying levels of risk and return potential.

Investors can consider multi-asset funds for stability as market volatility rises, using diversification across equities, debt and gold to balance risk and improve long-term wealth-creation potential.

With gold and silver prices soaring, experts recommend multi-asset allocation funds. These funds offer diversification across various asset classes, reducing risk while providing robust returns.

Multi-asset funds simplify investment by balancing across equities, debt, and gold, reducing the burden of portfolio rebalancing for retail investors. While they offer professional management and diversification, they may not be optimal for long-term wealth creation due to lower equity exposure.

Axis recommends constructing a diversified portfolio spanning multiple asset classes to safeguard against market volatility. The brokerage is overweight on equities, neutral on fixed-income assets and gold. Market dynamics will pivot around prevailing narratives, influencing investment decisions.