As the name suggests, a multi-asset allocation fund is a type of mutual fund scheme that invests in multiple asset classes.
As per SEBI’s categorization of mutual funds, a scheme is classified as a multi-asset allocation fund when it invests in at least three different asset classes with a minimum allocation of 10% in each asset class.
For example, a multi-asset allocation fund may allocate:
- 10% in one asset class,
- 35% in another asset class,
- and 55% in a third asset class.
These asset classes may include equities, debt instruments, gold, or other permissible asset categories.
Multi-asset allocation funds are generally open-ended mutual fund schemes and have NAVs (Net Asset Values) that represent the value of one unit of the scheme.
Investors can invest through SIPs (Systematic Investment Plans) or lump sum investments. They can also redeem units and receive payments subject to the rules and terms of the scheme.
You can learn more about mutual funds, SIPs, investing concepts, and portfolio-building strategies through the Mutual Fund Learning Hub.
Important MF related links
2. What is a dynamic asset allocation fund?
