Canara Robacco Mutual Fund has launched the new multi asset allocation fund. This fund will try to give alpha returns in the market in a rapid pace, while investors will not affect the money at the time of decline. This fund will invest in a variety of assets. These include shares, date, gold and silver ETFs.
Investment in different asset classes
Multi Asset Allocation Fund (Multi Asset Allocation Fund)) According to market conditions, different asset classes have the right to increase or reduce investment. Because of this, such funds protect investors from damage in the event of decline in markets. It will invest 65-80 percent in equity and equity instruments. 10-25 percent will be in gold and silver ETFs. 10-26 percent will be in debt and money markets instruments. it Reits And Invits Will also invest in
Investment according to market status in shares
Sridatta Bhandwaldar, Head (Equity) of Canara Robaco Mutual Fund, said that we will balance the portfolio according to the market conditions. Equity allocation will be decided on the basis of the fund’s internal research. In this, standards like economy, arnigs and valuations will be taken care of. Based on these standards, the fund will be able to change the range of 30-80 percent in its equity allocation. He said that when the conditions are favorable, then 80 percent will invest in equity to increase fund returns.
Investment in shares of good record companies
He said that when these conditions are not favorable, there will be a focus on reducing investment in equity to reduce the value of portfolio. The selection of stock is not given much importance in asset allocation. However, diversification will be taken care of in preparing equity portfolio. He said that the fund will only invest in stocks of companies that will be the leader of its sectors or whose record of performance in different market bicycles will be excellent.
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Should you invest?
Multi asset allocation funds invest in a variety of assets. At present, there are 26 multi asset allocation funds in the market. Investors need to understand that there is also a risk in multi -allocation funds. However, in the event of a decline, the focus of this fund is to protect the portfolio from damage. Before investing, you should take into account the ability to take risk, the duration of investment and the aspect of tax.