Multi Asset Allocation Funds

A Multi Asset Allocation fund must invest at least 10% in each of at least three asset classes. In practice that is usually equity, debt and gold, sometimes with international equity added.

Why the mix helps

These assets do not move together. Gold often rises when equity is under stress and the rupee weakens; debt provides income when equity stalls. Combining them lowers portfolio volatility more than it lowers expected return.

Rebalancing is the quiet advantage

The fund trims what has run up and adds to what has lagged, automatically. Done inside a single scheme, that rebalancing triggers no tax event for you — whereas doing it yourself across three funds would.

Check the actual allocation and tax status

The 10% minimum leaves wide latitude: one fund may hold 65% equity, another 35%. That difference drives both risk and tax treatment, since equity taxation depends on the equity and derivative share. Verify both before choosing.