Canara Robeco Mutual Fund has launched a new Multi Asset Allocation Fund.
This fund aims to generate alpha returns during market uptrends while minimizing the impact of downturns on investors’ money.
It will invest in various asset types, including stocks, debt, gold, and silver ETFs.
Investing in Multiple Asset Classes
The Multi Asset Allocation Fund can adjust its investments across different asset classes based on market conditions.
This flexibility helps protect investors from losses in a falling market.
The fund will allocate 65-80% of its capital to equities, 10-25% to gold and silver ETFs, and 10-26% to debt and money market instruments. It will also invest in REITs and InvITs.
Stock Investments Based on Market Conditions
Shridatta Bhandwalder, Head of Equity at Canara Robeco Mutual Fund, stated that the portfolio will be adjusted according to market conditions.
The fund’s equity allocation will be based on internal research, considering factors like the economy, earnings, and valuations.
The equity allocation can range from 30% to 80%, with the fund investing up to 80% in equities when conditions are favorable to maximize returns.
Focus on Strong Companies
When market conditions are unfavorable, the focus will shift to reducing equity exposure to protect the portfolio.
While stock selection is secondary in the asset allocation process, diversification will be prioritized in the equity portfolio.
The fund will invest only in stocks of companies that are leaders in their sectors or have a strong performance track record across market cycles.
Should You Invest?
The Multi Asset Allocation Fund invests in a variety of assets. Currently, there are 26 similar funds available in the market.
Investors should remember that multi-asset funds come with risk, but this fund aims to shield the portfolio from losses during market declines.
Before investing, consider your risk tolerance, investment horizon, and tax implications.
