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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

Illustration: Binay Sinha
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Illustration: Binay Sinha

Sanjay Kumar Singh
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

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First Published: Feb 25 2022 | 6:10 AM IST

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