Mutual Funds Day 34: Multi Asset Funds

We covered the important categories of Equity, Debt, and Hybrid funds. There is a type of hybrid fund that requires special mention — it is the Multi Asset category.

A Mutual fund that invests in different asset classes at the same time is called a Multi Asset fund, the different assets could be equity, gold, debt, international funds, etc. (RBI’s regulation may or may not allow international equity investing so the AMCs may have to comply with the framework and rules).

This is an excellent choice if you have the patience to hold only 1 mutual fund as it automatically takes care of all the assets a modern-day individual should invest in. The rule says the fund manager should invest a minimum of 10% in each asset class. Normally the fund manager will have more weight in equity to improve the total returns, the rest could be debt or gold. He may even keep a sizeable amount as cash if the stock markets are over-valued.

Examples:

https://viswaram.com/mutual-funds-day-35-index-funds-115f5221df44

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