Multi-Asset Allocation Fund

Portfolio diversification is a major benefit of this fund as your fund managers assess the market and diversify your portfolio among different types of assets and companies. Moreover, asset diversification slightly reduces the risk related to returns, thus making it a suitable fund option to invest for all.

With multi-asset funds, you can expect stable returns from your invested money. This fund provides stable returns even in scenarios of market fluctuation as the assets invested include not only equity stocks but also debt funds, stocks, etc. For example, consider a fund that has invested equally in both equities and gold. Now, if the market turns bearish but the value of gold remains stable or even increases, then the overall investment portfolio will also remain stable.

A fund manager has to manage multi-asset fund growth in real-time. This is because it is important to invest as per market conditions. For example, if the value of one asset is steadily declining, it may be wise to shift the investment to another asset. Thus, multi-asset mutual funds allow flexibility regarding investment.

Multi-asset mutual funds are best for medium to long-term investors. You can invest for a tenure of 3 to 5 years, which will help you yield significant returns and avert risks of market fluctuations. 

The best multi-asset allocation fund has a great scope for managing your investment risk. This is because your money is put in different asset classes, such as equities, debt funds, golds and others, which diversifies your risks as well. 

The portfolio of the fund will decide how it will be taxed. If a minimum of 65% of the portfolio is invested in equities and equity-related instruments, then it will be taxed like an equity fund. Otherwise, it will be taxed like a debt fund. Hence, as an investor, you can easily get taxation benefits from such funds.

Multi-asset funds are designed for the medium to long term, ideally more than 3-5 years. They're not suitable for quick, short-term financial goals.

Reflect on what you aim to achieve with your investment. Multi-asset funds provide balanced growth and are more about stability than high returns. Ensure the fund's strategy aligns with your financial objectives.

Are you comfortable with a conservative risk profile? Multi-asset funds are generally lower risk compared to single asset funds. If you're open to higher risks for greater potential returns, you might want to explore other options.

Understand the expense ratio of the fund. Multi-asset funds require active management, which can lead to higher fees. These costs can impact your net returns, so it's vital to consider them in your decision.

Look at the fund's track record to gauge its consistency and reliability. While past performance isn't indicative of future results, it can provide valuable context for your decision.

The success of a multi-asset fund heavily depends on the fund manager's skill. Research the manager's background and performance history to ensure they have a solid track record of managing diversified investments.

Download the INDmoney app, create an account, and complete your KYC to get started without any fees.

Once you're in, navigate to the mutual fund section and select multi-asset allocation funds.

Choose a fund by looking at its performance, risks, size, fees, and investments.

Decide how you want to invest: regularly through SIP or a one-time lump sum. Select the option you prefer on the fund's page.

Enter the amount you want to invest, either as SIP or lump sum.

Set up your payment. For SIPs, enable auto-pay via bank or UPI. For lump sums, use UPI, net banking, NEFT, or RTGS to make the payment.