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Multiple Advantage Fund ( Multi Asset Fund)

Posted By: Admin

Worried about Equity  markets going down, investing in  Gold  prices are very  volatilite, &  Fixed Deposits interest is too low. If these are your problems.   If you have noticed that in the case of  all the three asset classes, the trend won’t be the same. So how about having all the three asset classes at a single Investment. Welcome Multi Asset Fund. Risk will be drastically reduced because of the asset allocation of Equity, Debt & Gold. So we have an option in mutual funds which is Multi Asset Fund.

Let’s have a look at Multi Asset Fund

Multi Asset funds  has various asset classes like equity, debt instruments, cash, International stocks & also gold in its portfolio to diversify & also to reduce the risk. This fund is considered a hybrid category from a classification perspective. Equity holdings ( 30-40%) will be in large cap & mid cap stocks due to low & medium risk. The debt allocation ( 30-40%) consists of government securities, treasury bills & Crisil AAA & AA rated bonds & debentures and other instruments (30-40%) like gold, Triparty repo etc. Some multi-asset funds nowadays are investing in international stocks to diversify & reduce the risk in the portfolio. 

Taxation

As this fund is considered a hybrid fund. It will be taxed under Debt fund category taxation. If the fund is held  for more than 3 years it will be considered as long term capital gain which will be taxed at 10 % flat. If it is sold before 3 years it is considered as short term capital gain which is taxed at  investors taxation rate.

Conclusion

Those who don’t want to take more risk and also need an inflation adjusted return can invest in these funds as it has all the asset classes. Below are the historical performance of various multi asset funds.

 

Historical  Performance %

Fund

1-Y

3-Y

5-Y

7-Y

10-Y

Nippon India Multi Asset Fund

-

-

-

-

-

Axis Triple Advantage Fund

38.36

14.01

11.48

10.45

10.28

HDFC Multi Asset Fund  

37.15

12.24

10.47

9.73

10.12

ICICI Prudential Multi Asset Fund

44.44

12.98

14.07

11.74

13.39

Motilal Oswal Multi Asset Fund

-

-

-

-

-

SBI Multi Asset Allocation Fund

21.3

10.87

9.41

10.22

10.11


By Narayanan






  

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