Some investors do not want to take much risk and they are scared about equity investments. They do not even plan for diversification of their portfolio. Multi-asset mutual funds would be useful for such investors.
What are multi-asset mutual funds?
Multi asset mutual fund schemes would invest in all asset classes like equity, debt and gold. Equity mutual funds invests majority in equity. Debt funds invests majority in debt. On other hand, multi-asset funds invests more in debt (debt + gold) and less in equity. Some of the multi-asset funds invests equally among all these 3 asset classes. These are even called as all-in-one funds. L&T India equity and gold fund, Axis Triple advantage fund, Kotak multi-asset fund, Quantum Multi Asset Fund, Franklin India Multi Asset Solution fund and Peerless 3-in1 fund are some of the mutual fund schemes in this category.
Positives in Multi-asset Mutual funds
These funds have less exposure to equity and stock market volatility would have less impact on such funds. Hence investors of these funds need not worry about any market crash. These funds are diversified across asset classes; hence an individual investor need not worry about diversification of their investments in equity, debt and gold. These are good option for conservative investors who do not want to take high risk.
