Motilal Oswal MF will launch Motilal Oswal Multi Asset Fund, an open ended fund that would invest across three asset class – equity, debt, gold.
The fund aims to generate long term capital appreciation by investing in a diversified portfolio comprising equity, international equity index funds/equity ETFs, debt and money market instruments and gold exchange traded funds.
In a press release, the company said, “Different asset classes react differently to business cycles, changes in economy & geo-political realities and hence have different levels of risk. Allocating funds solely to a single asset class is not prudent as it is prone to behave inconsistently, go through its own cycles and may not garner efficient inflation and risk adjusted returns. Asset allocation tries to balance the risk by dividing assets among investment vehicles. Low correlation among different asset classes provide the portfolio with an effective hedge in lowering the volatility of the portfolio.”
