In current market scenario, where investors are facing real dilemma of choosing the investment asset class.
Investors are unwilling to invest 100% in traditional instruments as they currently offer meager returns, averse to invest all in equity as it carries high risk; also, not going all hog on gold as they think that the rally for gold is over & not investing in debt instruments as the risk of credit default has gone up amid current environment.
Is there any product which can allow investor to invest in all the above asset classes with the changing market dynamics, high downside protection and which aims for reasonable returns?
Interestingly, playing to this opportunity, Motilal Oswal mutual fund is launching a New Fund Offer based around the asset diversification- “Motilal Oswal Multi Asset”. Quick look at the features – open-ended, Multi asset.
Asset Allocation of Motilal Oswal Multi Asset Fund is as follows:
Every asset class has its “season”, and an investor whose portfolio is dynamically aligned to shift into said asset class, is poised to win most. All asset classes have their designated role ranging from generating alpha to acting as hedge, thus helping portfolio to maximize diversification benefits.
The Asset class correlation matrix is as follows:
Different levels of correlation among different asset classes provide the portfolio with an effective hedge
The Result of having the right mix of asset classes, in the right proportion, has led to Multi-Asset as a MF category to outperform its peers across various time periods. Table below highlights category average performance of MF categories.
The fund deserves an allocation in your portfolio for those who desire marginally better & consistent returns without
taking higher risk and looking to make an entry into the prevailing uncertain market.
The fund is suitable for those who are having an average indicative horizon up to five years & more.
In case you wish to understand more about the opportunity or simply discuss the prospects of the funds, feel free to
connect with us and we would be glad to have a chat.