Mirae Asset Mutual Fund on January 10, 2023, launched the Mirae Asset Multi Asset Allocation Fund, a hybrid investment vehicle diversifying across Equities, Debt instruments, Gold ETFs and Silver ETFs. The New Fund Offer (NFO) is scheduled to run from January 10, 2024, to January 24, 2024.
Investors can invest a minimum investment of Rs 5000 and in multiples of Re 1 thereafter for lump sum investments. For SIPs, it is Rs 500. If Investors redeem investments within 1 year from the date of allotment, they face an exit load of 1 per cent. If redeemed after 1 year from the date of allotment, the exit load is nil.
Multi-Asset Allocation Fund
Multi-Asset Allocation Funds are strategically crafted to allocate investments across diverse asset classes. According to the guidelines set by the Securities and Exchange Board of India (SEBI), these funds fall under the hybrid category, mandating a minimum allocation of 10 per cent to three distinct categories such as equity, debt, gold or commodities, or REITs/InvITs units.
These funds provide the flexibility to adapt to market conditions, enabling capitalization on the market uptrends by investing in profitable asset classes during a bull run or prioritizing stability during market downturns through less volatile options.
Portfolio Strategy
Mirae Asset Mutual Fund outlines its goal of maintaining a diversified portfolio, allocating 65 per cent to equities, 10 per cent to fixed-income assets, and 10 per cent to domestic gold and silver ETFs. Multi-asset allocation funds’ portfolio will undergo systematic rebalancing to maintain the targeted allocation.
Harshad Borawake, Fund Manager, Mirae Asset Investment Managers said, “A mix of asset class may act as a hedge due to which the market volatility could be managed better, Mirae Asset Multi-Asset Allocation Fund aims to bring this investment experience to investors. Such a product may be suited for Investors seeking to participate across diverse asset classes but want to do it under one scheme".
Swarup Anand Mohanty, Vice Chairman & CEO, Mirae Asset Investment Managers (India) Pvt.. Ltd. added “Investors primary concern is riding volatility and wealth creation, that may be achieved with combination of assets, it may help an investor get away with the hassle of predicting which asset class will do well & allows the combination which may work in much more consistent manner. Multi Asset aims to solve the Jigsaw Puzzle of Volatility.”
According to AMFI data, the average return for the top ten funds in this category stands at 22.01 per cent over the past year and 16.53 per cent over the past three years.
