Why Choose Multi-Asset Allocation Funds in 2024?
Mutual funds have become a favored investment option for individuals aiming to enhance their wealth growth. With a variety of mutual funds available, selecting the right one can be daunting. Multi-Asset Allocation Funds fall under hybrid funds, investing at least 10% in three or more asset classes, usually a mix of equity, debt, and another asset such as gold or real estate.
Investing in Multi-Asset Allocation Funds offers numerous benefits. Primarily, they present lower risk compared to other hybrid funds due to diversification across multiple asset classes, mitigating risks linked to singular asset classes.
Additionally, these funds generally have a smaller stock allocation, leading to potentially lower returns than pure equity funds in a rising stock market. Nevertheless, they offer increased stability and can yield better returns during market downturns.
Ideal for those with a minimum investment horizon of three years, Multi-Asset Allocation Funds are tailored for long-term performance.
Among the leading Multi-Asset Allocation Funds in 2024 are: Quant Multi Asset Fund, SBI Multi Asset Allocation Fund, ICICI Prudential Multi Asset Fund, HDFC Multi Asset Fund, and Axis Multi Asset Allocation Fund. Over recent years, these funds have consistently delivered returns.
To invest in these funds, you can register through the ET Money app or their website. Select your desired fund, investment amount, and mode (SIP or Lumpsum). Complete your investment by providing KYC details.
In summary, Multi-Asset Allocation Funds are an excellent option for portfolio diversification and risk reduction. These funds combine various asset classes, offering potential for stable, consistent long-term returns. Selecting the right fund is crucial, aligning with your investment goals and risk appetite.
- PFRDA
- SWIFT
- AUM