Mumbai, Jan. 14-
Asset classes have one thing in common, they are differently co-related to each other and their performance depends on factors which may be independent to each other. Hence a combination of asset classes may help to balance out volatility.
Mirae Asset Mutual Fund has launched Mirae Asset Multi Asset Allocation Fund NFO, An open-ended scheme investing in equity, debt & money market instruments, Gold ETFs, Silver ETFs and exchange traded commodity derivatives.
The NFO which has been opened on January 10, 2024 is said to be closing on 24 January 2024.
Managed by Harshad Borawake (equity part) and Amit Modani (debt part) and the minimum investment will be Rs.5000 and Rs. 500 for SIPs. Also, Siddharth Srivastava will manage the Overseas Investments Portion & Ritesh Patel will manage the Commodity Investments.
The combination of asset classes has provided better investment experience over the years and the fund aims to capture the business cycle benefits of different assets over a period. As the table suggests, winners keep changing and hence its is difficult to predict which asset class may perform consistently, thus the case for Multi-Asset.
As per the table of each year returns across Equity, Gold, Debt and Multi-Asset, Multi-Asset has been consistent most of the time, especially in last 3 years
Speaking on the NFO Launch Harshad Borawake, Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd. said “A mix of asset class may act as a hedge due to which the market volatility could be managed better, Mirae Asset Multi Asset Allocation Fund aims to bring this investment experience to investors. Such a product may be suited for Investors seeking to participate across diverse asset classes but want to do it under one scheme”.
3 year daily average rolling returns across S&P BSE 200 TRI, Multi-Asset Benchmark and Nifty50- TRI showcases that Multi-Asset benchmark chosen for the scheme has consistently outperformed Nifty 50-TRI over 1, 3 & 5 year. Also, the Average Standard Deviation is comparatively lower compared to the other two indices.
Swarup Anand Mohanty, Vice Chairman & CEO, Mirae Asset Investment Managers (India) Pvt.. Ltd. added “Investors primary concern is riding volatility and wealth creation, that may be achieved with combination of assets, it may help an investor get away with the hassle of predicting which asset class will do well & allows the combination which may work in much more consistent manner. Multi Asset aims to solve the Jigsaw Puzzle of Volatility.”
Mirae Asset Multi Asset Allocation Fund NFO closes on 24th Jan 2024 & will re-open for continuous Sale and Repurchase from 1st February 2024.
