Asset classes follow their cycles and their rise & falls are often unpredictable. On top of Equity & Debt Market’s normal volatility, when there are complex geopolitical events, even commodities come into play. Reason why.
Many advisors are recommending these products as a ‘safe bet’. They are relatively safe, but definitely not totally risk-free. Many schemes invest 40% in stocks. Therefore, they can be risky.
"Consumer discretionary is a long-term structural theme with the availability of many diverse sets of niche businesses. Indias per capita income is less than $2500, which is very low compared to many other countries, but it is expected to grow rapidly over this decade. With rising per capita incomes, discretionary consumption grows meaningfully."
"Multi-asset allocation funds are gaining popularity among new investors who are looking for a steady growth investment vehicle. These funds provide exposure to different asset classes like equity, debt, and gold, which can help investors diversify their portfolios. While the performance of these funds has been decent, investors should be aware of the cyclical nature of different asset classes. Fund managers play a crucial role in managing the risk and volatility associated with these funds. "