Multi-asset playbook divides mutual fund industry; hybrids in demand

Three recent launches opt for debt taxation, two stick to equity

The change in debt fund taxation is seen as boosting the demand for hybrid funds. It is no surprise then that asset management companies (AMCs) have launched a raft of new products in the multi-asset category.

However, they seem to be divided on the asset mix and approach.

The multi-asset space, which provides fund houses ample scope to innovate, has seen five launches in as many months.

While two of these schemes — by Kotak Mahindra and Shriram — have adopted the traditional multi-asset structure designed for equity taxation, the rest of the three schemes — by DSP, Edelweiss, and