Diversified equity funds (large, mid and small) have declined between 11 and 19 per cent over the past six months. Multi-asset allocation funds (MAAFs), a hybrid category of funds, have done a much better job of containing the downside by declining 5.6 per cent over the same period.
Amid market turbulence, investors seeking stability with reasonable returns may MAAFs. These schemes invest across equities, bonds and commodities, with a minimum 10 per cent allocation to each asset class. In addition, they may invest in units of Infrastructure Investment Trusts (InVITs) and Real Estate Investment Trusts (ReITs).
