Multi-asset funds must hold a minimum of 10 per cent in three asset classes: equity, debt, and gold.
Beyond this, they have the leeway to layer the fund with global equities, exchange-traded commodity derivatives (ETCDs), gold and silver exchange-traded funds (ETFs), real estate investment trusts (Reits), and infrastructure investment trusts (Invits).
By diversifying, these funds aim to capture gains in some assets while mitigating losses in others.
Their popularity has increased as stock valuations remain high.
Returns rotate
The basic premise behind multi-asset funds is that asset classes perform differently depending on economic cycles and market phases.
Debt yielded strong returns in 2014 and 2016, but faltered in 2022.
A decade ago, gold lagged from 2013 to 2015, while equities excelled.
Currently, gold is surging while equity markets face volatility.
Investors often latch on to an asset class after it has moved up considerably.
هذه القصة مأخوذة من طبعة November 08, 2024 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة November 08, 2024 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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