Mahindra Manulife Mutual Fund launched ‘Mahindra Manulife Multi Asset Allocation Fund,’ catering to investors seeking diversified exposure across asset classes such as equity, debt, Gold or Silver ETFs and other Gold or Silver related instruments. The New Fund Offer (NFO) opens today, February 20, and runs till March 5, 2024. Subsequently, the fund will reopen for subscription from March 15, 2024.
This hybrid fund aims to mitigate volatility by diversification across asset classes and thus aims to combine the stability of fixed income, the growth potential of equity and tactical exposure to gold or silver. Following the second-highest industrywide inflow of Rs. 22,415 crores in 2023 into the multi-asset allocation fund category, over four asset management companies have introduced NFOs in this category in 2024.
NFO Details
Investors can invest a minimum investment of Rs 1,000 and in multiples of Re 1 thereafter for lumpsum investments.
Investors can also opt for the SIP route with a minimum investment of Rs. 500. If investors redeem any investment within 3 months from the date of allotment, they face an exit load of 0.5 per cent.
Multi-Asset Allocation Fund
The Securities and Exchange Board of India (Sebi) mandates a minimum allocation of 10 per cent to three distinct categories such as equity, debt, gold or commodities, or REITs/InvITs units for multi-asset allocation funds. The Scheme aims to balance risk and reward by apportioning investments across specified asset classes and offers LTGC taxation with the benefit of indexation to the investors.
Asset Allocation Pattern
The fund's asset allocation pattern comprises of equity & equity-related instruments (35-80 per cent), debt and money market securities (10-55 per cent), units of gold and silver ETFs & other related instruments (10 to 30 per cent), and units issued by REITs and InvITs (0-10 per cent).
Mahindra Manulife Mutual Fund employs top-down and bottom-up methodologies while selecting equity and equity-related instruments.
Anthony Heredia, MD & CEO of Mahindra Manulife Investment Management Private Limited, said "Markets will always present opportunities along with challenges, and diversification between asset classes done thoughtfully is one of the best ways to make the best of the opportunity, without losing sight of risk. The Mahindra Manulife Multi Asset Allocation Fund presents an opportunity for investors to access multiple asset classes within one product, including equity, debt and gold/silver ETFs.”
Multi-Asset Allocation Fund Performance Metrics
According to data from the Association of Mutual Funds of India (AMFI), 11 funds in the multi-asset allocation fund category, over the past year, gave collective average returns of 26.54 per cent, its best performance historically. The returns over the past three years were 15.7 per cent, and in five years, it was 17 per cent.
