Nippon India Multi Asset Fund follows a simple asset allocation model that provides a tax-efficient diversified solution for long term investors.
The fund maintains a stable allocation across domestic equity (50%), international equity (20%), commodities (15%) and debt (15%).
International equity is passively invested in the MSCI World Index to capture global equity opportunities. Domestic equity is actively managed akin to a large & midcap fund, with a strong focus on bottom up stock picks.
Commodities exposure of 15% includes minimum 10% in gold and the balance either in gold or tactically in other commodities including silver and oil.
Debt allocation is managed akin to a short term fund – low on duration, low on credit risk.
Over the last 12 months, the fund has outperformed peer group average by 2% - outperformance driven in initial period by overseas equity allocation and more recently by stock picks in domestic cyclicals and a clear underweight on global cyclicals.
Taxation is akin to the erstwhile debt fund tax rules – 20%LTCG with indexation benefits, which suits investors in higher tax brackets.
This fund is part of a complement of 6 asset allocation solutions that Nippon India MF has made available (2 inflation fighters and 4wealth creators) to suit almost all unique investor needs and risk appetites.