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Motilal Oswal Asset Management Company has launched a Multi Asset Fund that will invest in equity, international equity index funds/ equity Exchange Traded Funds Debt and Money Market Instruments and Gold ETF.
The fund will open for subscription from July 15. Investors can invest through lumpsum or minimum SIP of ₹500 during NFO and ongoing period.
The open ended fund targets to generate long-term capital appreciation by investing in a diversified portfolio in four different asset class. Having a right asset allocation is the key to navigate such volatile periods.
Asset allocation tries to balance the risk by dividing assets among investment vehicles. Low correlation among different asset classes provide the portfolio with an effective hedge lowering the volatility of the portfolio.
The fund will invest 10-50 per cent in equity, international equity index funds and equity ETFs, 40-80 per cent in debt, money market instruments and 10-20 per cent in Gold ETF.
Lower correlations among assets help reduce portfolio volatility while investments in gold and international equities will provide a hedge against inflation and diversification. Debt and money market instruments will be in AAA papers with a 3-5 year average maturity, said the fund house.
The benchmark for the fund will be Nifty 50 TRI (30 per cent), Crisil Short Term Gilt Index (50 per cent), Domestic Price of Gold (10 per cent) and S&P 500 Index (10 per cent).
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