{"id":4511,"date":"2023-07-27T12:05:42","date_gmt":"2023-07-27T12:05:42","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=4511"},"modified":"2023-07-27T12:07:02","modified_gmt":"2023-07-27T12:07:02","slug":"what-are-multi-asset-funds","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/what-are-multi-asset-funds\/","title":{"rendered":"What are Multi-asset Funds?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Ever wondered why gold price increases when the Equity markets undergo correction or if there is news of economic recession? The last time this happened, many investors missed the bus to ride the Gold ETF upswing and vowed to take action the next time, but again missed it in the recent correction phase.<\/span><\/p>\n<p><strong>Is there a solution to this?<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Yes, Multi-Asset Funds or MAF are the solutions to this problem. Simply speaking, these mutual funds shift money from one asset to a different asset like equity, global stocks, gold, debt, real estate and related instruments. They invest in at least 3 or more asset classes at a time, which gives you asset diversification automatically.<\/span><\/p>\n<h2><strong>Why should you invest in a Multi-asset Fund?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Any retail investor who does not have time, knowledge or discipline to manage the asset allocation manually should ideally prefer investing in multi-asset mutual funds, which does the diversification across asset classes for him.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Diversification:<\/b><span style=\"font-weight: 400;\"> Mutual Fund houses have mathematical models which suggest the fund manager to enter or exit an asset when that particular asset is oversold or overbought. So, your money is managed through a rigorous process.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">\u00a0<\/span><b>Avoid Confusion:<\/b><span style=\"font-weight: 400;\"> They say that 70% of the time markets are in range or do not follow a particular trend. These are the times when a retail investor makes mistakes. This makes MAF an ideal fund to invest in when there is confusion about where to invest<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\"><strong>Difference between Multi-asset Fund and Balanced Advantage Fund<\/strong><\/span><\/h2>\n<p><img decoding=\"async\" class=\"wp-image-4512 size-full\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi.png\" alt=\"\" width=\"788\" height=\"544\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi.png 788w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-300x207.png 300w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-768x530.png 768w\" sizes=\"(max-width: 788px) 100vw, 788px\" \/><\/p>\n<figure id=\"attachment_4513\" aria-describedby=\"caption-attachment-4513\" style=\"width: 1024px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-4513 size-large\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_1-1024x492.png\" alt=\"\" width=\"1024\" height=\"492\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_1-1024x492.png 1024w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_1-300x144.png 300w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_1-768x369.png 768w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_1-1536x738.png 1536w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_1.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-4513\" class=\"wp-caption-text\">The securities are quoted as an example and not as a recommendation, source: www.moneycontrol.com<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">As you can see in the 2-year comparison chart between Nifty 50 and\u00a0 ICICI Prudential Multi-asset Fund, there is a huge outperformance of MAF when equity markets were down due to the presence of multiple assets like debt, gold etc.<\/span><\/p>\n<figure id=\"attachment_4514\" aria-describedby=\"caption-attachment-4514\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-4514 size-large\" src=\"https:\/\/paytmmoney.wpengine.com\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_2-1024x492.png\" alt=\"\" width=\"1024\" height=\"492\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_2-1024x492.png 1024w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_2-300x144.png 300w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_2-768x369.png 768w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_2-1536x738.png 1536w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2023\/07\/Multify-Karo-with-Multi-asset-Funds-_2.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-4514\" class=\"wp-caption-text\">The securities are quoted as an example and not as a recommendation, source: www.moneycontrol.com<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">As you can see in the 5-year comparison chart between Nifty 50 and ICICI Prudential Multi-asset Fund, there is outperformance of Nifty 50 in periods where equity markets were in a super bullish zone.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This implies that timing asset diversification is a difficult task for a retail investor and at least 5-10% of funds should be allocated ideally in a Multi-asset Fund.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Happy Investing!<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><b>Disclaimer:<\/b> <span style=\"font-weight: 400;\">Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking \u2013 INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete Terms &amp; Conditions and Disclaimers visit: <\/span><a href=\"https:\/\/www.paytmmoney.com\/stocks\/policies\/terms\"><span style=\"font-weight: 400;\">https:\/\/www.paytmmoney.com<\/span><\/a>. <span style=\"font-weight: 400;\">The securities are quoted as an example and not as a recommendation. Brokerage will not exceed the SEBI prescribed limit<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ever wondered why gold price increases when the Equity markets undergo correction or if there is news of economic recession? The last time this happened, many investors missed the bus to ride the Gold ETF upswing and vowed to take action the next time, but again missed it in the recent correction phase. Is there<a href=\"https:\/\/www.paytmmoney.com\/blog\/what-are-multi-asset-funds\/\">Continue reading <span class=\"sr-only\">&#8220;What are Multi-asset Funds?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":24,"featured_media":4515,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-classic-ns.php","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/4511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=4511"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/4511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/4515"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=4511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=4511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=4511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}