The Many Benefits of Multi-Asset Funds

Good investment experience while achieving various financial goals is what investors should look for. There are multiple assets available for investments, each with its own distinct quality, valuation dynamics, risk parameters and performance cycle.

Darshan Mahendra Parekh

Mutual Fund Distributor.

The prudent way to create long-term wealth is by having proportionate exposure to various asset classes, be it equity, debt, commodities or real estate. It is needless to say that asset allocation is a well-proven and successful investment strategy. One may look at investment vehicles which diversify your portfolio in various asset classes.

Not only such an investment approach saves you from the asset concentration risks but helps you get an optimum mix of long-term returns from multiple assets. It is here that multiasset mutual funds establish their effective relevance and emerge as an evergreen investment strategy. These funds invest in three or more assets with a minimum exposure of 10 per cent to each. They take care of the asset allocation and work on the simple principle of mitigating asset concentration risks.