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.
この記事は Business Standard の November 08, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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この記事は Business Standard の November 08, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
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