Weekend Bytes
Asset allocation in a jiffy with a Multi-Asset Fund
We all need asset allocation...consider Multi-Asset Fund
- Asset allocation is a basic need for each one of us in our financial journey.
- Each asset class (equity, debt, gold, etc.) behaves differently across different economic cycles.
- Asset allocation reduces dependency on a single asset class to generate returns.
- Mitigates fluctuation of portfolio returns.
How can you go about doing Asset Allocation?
- Determine financial goals.
- Ascertain risk appetite.
- Determine optimal asset allocation.
- Invest in different asset classes directly.
- Rebalance portfolio periodically in a tax efficient way.
Or Simply invest in a Multi-Asset Fund.
About HDFC Multi-Asset Fund
HDFC Multi-Asset Fund is an open-ended scheme investing in Equity and Equity related instruments, Debt & Money Market Instruments and Gold related instruments.
Why invest in HFDC Multi-Asset Fund?
- Timing the market for various asset classes is difficult as different asset classes behave differently across different economic cycles.
- Combining negatively correlated/ less correlated asset classes.
- Strong case of diversification
- Mitigates volatility of portfolio returns
- Reduces dependency on a single asset class to generate returns
- Financial model driven approach to asset allocation
- Benefits of equity taxation*
*As per prevailing provisions of the Income Tax Act, 1961. In view of individual nature of tax consequences, each unit holder is advised to consult their own professional tax advisors. Gross Equity exposure of >=65%
What is the current investment strategy of HDFC Multi-Asset Fund?
Gold Allocation to act as hedge against market uncertainties and inflation
What is the current asset allocation of HDFC Multi Asset Fund?
- Unhedged Equity – 53.67%
- Arbitrage – 13.79%
- Gold – 12.85%
- REITs & INVITs – 3.64%
- Debt and Cash equivalents – 16.05%
Data as on May 31, 2023. For complete portfolio details, refer www.hdfcfund.com
The current investment strategy is subject to change depending on the market conditions.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
