As of March 31, 2024, data published by the Association of Mutual Funds in India (AMFI) shows more than a twofold increase in the assets under management over the past five years with AUM surging from *23.80 lakh crore to 53.40 lakh crore. Among the myriad investment avenues tailored to diverse risk appetites and financial objectives, multi-asset allocation (MAA) funds have emerged as a compelling choice, poised to potentially dominate the market in the coming years.
Understanding Multi-Asset Allocation Funds
A type of hybrid funds, multi-asset allocation funds represent a category of mutual funds that invest across a spectrum of asset classes. Unlike equity funds or debt funds, which concentrate on a single asset class, MAA funds diversify their investments across equities, debt instruments, international equities, and commodities such as gold and silver. The Securities and Exchange Board of India (SEBI) mandates that MAA funds should allocate at least 10 per cent of their corpus across three different asset classes. This diversification forms the bedrock of MAA funds, offering investors several advantages.
Advantages
Denne historien er fra May 06, 2024-utgaven av Dalal Street Investment Journal.
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Denne historien er fra May 06, 2024-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
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U.S. Elections and China's Economy Hamper Commodities
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Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
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Sectoral Gains Make A Mark
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