Asset allocation schemes yet to gain traction among mutual fund investors

Asset allocation schemes — which offer diversification between equity and debt — in the same fund are yet to gain traction among mutual fund (MF) investors. Industry experts and advisors say lack of investor understanding and instances of mis-selling had impacted investor sentiment on asset allocation 

strategies. 

According to data from Association of Mutual Funds in India (Amfi), asset allocation categories have seen net outflows of Rs 6,714 crore in the current financial year. Experts say investors are yet to understand that these funds are not to be compared with performance of equity schemes, given the debt component within an asset allocation