HDFC Multi-Asset Fund – Your Roadmap to Smart Asset Allocation

Mumbai, 27 May 2024: Investors often fall prey to recency bias, a tendency to favour asset classes that have recently performed well. This inclination can lead to chasing momentum and making investment decisions at inopportune times. Given the unpredictable nature, of market and the varying performance of asset classes across economic cycles, attempting to time the market becomes challenging. Hence, a prudent strategy involves diversification across negatively correlated or less correlated asset classes. HDFC Multi-Asset Fund emerges as a dynamic choice, offering investors a pathway that aims towards balanced growth and stability. Crafted for those seeking long-term capital appreciation and income generation, HDFC Multi-Asset Fund presents an avenue for investment across diverse asset classes.

The Multi-Asset Allocation Funds are particularly well-suited for investors aiming to diversify their portfolios and manage risk effectively, they not only help in mitigating portfolio volatility but also reduce reliance on any single asset class for generating returns. With a strategic allocation to equity, debt, and gold-related instruments, the fund aligns with the goal of achieving better returns while mitigating volatility. By seamlessly blending growth opportunities with risk management, HDFC Multi-Asset Fund positions itself as a good option for investors navigating the financial landscape with prudence and foresight.

Moreover, Multi-Asset Allocation Funds typically exhibit lower volatility compared to standalone equity funds, with an aim to provide investors with enhanced portfolio stability. Tax efficiency is another compelling reason to consider Multi-Asset Allocation Funds. For schemes maintaining over 65% of hedged and unhedged equity allocation, investors may qualify for equity taxation, potentially offering tax benefits. Additionally, by consolidating investments into a single Multi-Asset Allocation Fund, investors can simplify their portfolio management and streamline their investment decision-making process.

Navneet Munot, MD & CEO, HDFC AMC said, “In a volatile and uncertain world that we live in today, sound financial planning and asset allocation are an investor’s best allies. At HDFC MF, we offer investors wide array of hybrid schemes which aim to make asset allocation more accessible and easier for investors. HDFC Multi-Asset Fund, which invests in Equity, Debt and Gold-related instruments is a key pillar of our hybrid offerings platform and a one-stop solution for investors looking to diversify across these asset classes. If Asset Allocation is key, HDFC MF makes it easy.”

Mr. Srinivasan Ramamurthy, Fund Manager – Equity, HDFC AMC commented, “HDFC Multi-Asset Fund is a diversified offering with exposures primarily spread across domestic equities, fixed income and gold along with some REIT exposure. The asset allocation decisions are framework driven that focuses on counter-cyclicality i.e. by taking higher exposures to more attractively valued asset classes at any point in time. The fund also seeks to add value through active security selection within the equity and debt portfolios.”

With an allocation range of 65-80% to equity and equity-related instruments, 10-30% to debt securities and money market instruments, and 10-30% to gold-related instruments, HDFC Multi-Asset Fund offers a balanced risk profile. Moreover, allocations to Units issued by REITs and InvITs, as well as Non-convertible preference shares, further enhance diversification opportunities for investors.

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