Getting Agile. Staying Relevant

Asset allocation is critical in wealth creation. Every asset class behaves differently and provides varying returns across changing economic cycles. With the asset class winners changing, distribution becomes a dynamic process. Multi-asset mutual funds have long been a favourite for Indian investors. These funds primarily take exposure in the three asset classes — equity, debt and gold – to address the asset allocation needs of an investor. Equity, for example, aims to provide capital appreciation, while debt seeks to provide stability to the portfolio, and gold plays the potential safe haven, providing a hedge against inflation and currency depreciation. With the rapidly evolving financial scenario, mutual funds, too are undergoing major changes. The cryptocurrency segment has started launching MF-like investment instruments. Some companies have introduced systematic...