"A multi-asset allocation fund works well to ensure a diversified portfolio with ingredients that have a very low correlation with each others movements and ensure optimal risk-adjusted returns over the long term," says Sailesh Raj Bhan, CIO-Equity Investments, Nippon India Mutual Fund.
Hybrid funds are a category of mutual funds that invest in more than one asset class. While some schemes combine equity and debt, there are others that could also include gold, silver and REITs.
Multi asset allocation is a relatively less volatile vehicle compared to aggressive hybrid equity schemes, and it also offers indexation benefits in case the equity allocation is maintained between 35 percent and 65 percent.
Edelweiss Multi Asset Allocation Fund will invest your money across various asset classes, like equity, debt, real-estate investment trusts, infrastructure trusts, and so on. The NFO opens June 5.