Use multi-asset allocation funds if you are a new investor in the market

Evolved investors should use the option only as part of diversification of funds

After the run-up in equities over the past year, investors are worried about losing their gains due to a reversal in the market’s direction. They are keen to diversify into non-equity assets. Multi-asset allocation funds (MAAFs) have, hence, become popular in recent months.  

Two new fund offers (NFOs) from this category are open currently—from Bank of India (February 7 to 21) and HSBC Mutual Fund (February 8 to 22).

Says Kailash Kulkarni, chief executive officer, HSBC Asset Management Company (AMC): “This scheme aims to spread risk and optimise performance to deliver risk-adjusted growth in the long run.” 

Altogether 19 funds held assets under