Multi-asset allocation fund: Invest for a diversified, low-risk portfolio

But steer clear of them if you desire complete control over asset allocation

There is buzz around the Multi-Asset Allocation (MAA) Fund category. Kotak Mutual Fund’s new fund offer (NFO) for an MAA Fund is underway and the one by Shriram Asset Management Company has just ended. Bank of India and Quantum’s NFOs are in the pipeline. As many as 13 funds in this category manage Rs 35,601 crore. These funds garnered only 6.8 per cent average return in 2022 but are up 11.9 per cent year-to-date.

Investment approach

According to the Securities and Exchange Board of India (Sebi), these funds must invest in a minimum of three asset classes, with at least