Ukraine crisis: Mitigate volatility with multi-asset funds, say experts

According to the Sebi norms, multi-asset funds must have 10 per cent exposure each to equities, debt and gold

The BSE Sensex fell a steep 2,702 points (4.7 per cent) on Thursday after Russia attacked Ukraine. Investors keen to safeguard themselves from downside risk may seek refuge in a diversified category like multi-asset funds, which invest across equity, debt and gold.  

Flexible asset allocation

According to the Securities and Exchange Board of India (Sebi) norms, multi-asset funds must have 10 per cent exposure each to equities, debt and gold.

Aggressive hybrid funds need to maintain a minimum 65 per cent allocation to equities. This can make them susceptible when there is a downturn of the magnitude seen on Thursday. “In our multi-asset