Ludhiana, August 31, 2021 (News Team): As asset class winners keep changing, asset allocation is critical for wealth creation. HDFC Multi‐Asset Fund, which invests in 3 asset classes viz. Equity, Debt and Gold, aims to meet asset allocation needs of investors. Equity aims to provide capital appreciation, Debt aims to provide stability to the portfolio and Gold is a potential safe haven asset class, which also provides hedge against inflation and currency depreciation.
The HDFC Multi‐Asset Fund scheme invests between 10% to 30% of total assets in Debt instruments and 10% to 30% of Total Assets in Gold related instruments.
Amit Ganatra, Senior Fund Manager of HDFC Asset Management Company Limited (HDFC AMC) said, “Global as well as domestic growth prospects have been buoyed by accommodative monetary and fiscal policies, pent up demand recovery, vaccination drive and turnaround in corporate profitability. In India – corporate earnings cycle has turned around post Covid‐19 and a strong earnings cycle creates opportunities for investors to participate in equity as an asset class. However, there are also uncertainties around possible 3rd Covid‐19 wave, sustainability of recovery, potentially higher inflation and higher valuations post strong market rally. In this kind of an environment, Investors should consider asset allocation strategies as they not only ensure equity participation, but also aim to protect downside by exposure to other asset classes namely debt and gold.
