Aparna Karnik, SVP, DSP Mutual Fund, says “in terms of our multi-asset framework, we recognise that markets are multidimensional. There are so many factors such as growth, valuations, policy, interest rates, global macros which impact how the two different types of markets – stock market or fixed income – behave. In our framework, we try to estimate long-run trend return estimates of different asset classes.
We try to assess how each of these asset classes looks from a relative attractiveness. Then we try to create a blended portfolio such that there is some representation of each asset class but we look at the risk and return profiles of each of the underlying assets and create an optimum mix of assets with good returns to risk profile.”
