Going the Multi-Asset way

Let us look at these two contrasting statements.

Both of these statements reflect common investor sentiments, driven more by emotion than disciplined investment strategy. Holding large amounts of cash in bank accounts or Fixed Deposits may indicate fear, while maintaining higher than desired exposure to equities could signal overconfidence. These emotions are not conducive to a long-term investment strategy which is designed to withstand market threats, bubbles, and volatility.

Constructing a long-term investment strategy is like embarking on a sailing voyage. Before setting sail, one develops a navigation plan that identifies a destination and lays out an optimal course to reach that destination. Similarly, HDFC Multi-Asset Fund (“The Fund”) uses a model-based approach to asset allocation with an aim to help investors achieve their financial goals.

During a sailing journey, tools such as a compass, GPS, and radar monitor progress and keep the ship on the correct path. Likewise, HDFC Multi-Asset Fund uses metrics like Trailing P/E, Forward P/E, Trailing P/B, and Earning Yield/Bond Yield to monitor equity levels and rebalance the portfolio based on the model. When markets are expensive, the fund trims equity allocation; when markets are attractive, it increases equity allocation. Refer below the equity allocation based on the model and actual allocation since the model was introduced:

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The investment strategy is subject to change depending on the market conditions. The model-based investing started from January 28, 2021 onwards. TTM -Trailing 12 Months, PE – Price to Earnings, PB – Price to Book Value, Earnings Yield = Trailing 12 Months Earnings Per Share/ Market Price Per Share, G Sec Yield = 10 Yr G Sec. GFC is Global Financial Crisis. Depending on the market and other conditions, the asset allocation may or may not be based on the model. Actual Asset Allocation to Equity (% of Net Assets) as on May 31, 2024. Past performance may or may not be sustained in future and is not a guarantee of any future returns.

HDFC Multi-Asset Fund's strength lies in its ability to diversify across various asset classes—equities, debt, and gold—each playing a unique role in the portfolio. This diversification mitigates risk and has the potential to enhance returns, with an aim to provide a stable journey through market fluctuations. The fund’s model-driven strategy is not only about responding to current market conditions but also about anticipating future trends and making proactive adjustments. Portfolio positioning as on May 31, 2024:

Furthermore, HDFC Multi-Asset Fund’s rebalancing mechanism endeavors to align your portfolio with your long-term goals. By systematically adjusting the asset mix, the fund helps to smooth out the ride, endeavoring that you’re not overly exposed to any single market movement. This disciplined approach transforms emotional reactions into calculated decisions, encouraging a more resilient investment strategy.

Get ready to sail with HDFC Multi-Asset Fund. Let its model-driven approach and diversified portfolio guide you through the complexities of the market, helping you reach your financial destination. With HDFC Multi-Asset Fund, you’re not just investing; you’re navigating a course towards long-term financial growth.

To know more about HDFC Multi-Asset Fund click here.