The market off late has been extremely volatile owing to the developments on the domestic political front post the result of the recently concluded general election. Adding to this is the ever evolving geo-political tensions and global growth concerns unnerving the investors further. If you are among those who are confused regarding how to go about your investment in such a situation, there a multi-asset approach is what you should opt for. Multi-asset investing takes care of the asset allocation part - a key for successful investment.
The multi-asset investing approach, as is amply clear from the name, is an investment approach through which one gets exposure to various asset classes at any given point of time. Though it is an evergreen strategy, its importance rises manifold during uncertain times. This is because a multi-asset portfolio will comprise of various asset classes like equity, debt, commodities, REITs, InvITs etc. Historical data shows that such a diversified portfolio tends to deliver robust returns over the long term.
A multi-asset investment approach ensures investors do not miss out on the high growth prospects of equity, while also having access to the stable returns provided by debt. Further, Gold as an asset class offers a strong hedge against inflation while REITs and InvITs help generate the extra yield in your portfolio.
One of the easiest way to gain access to multi-asset investing is through a multi-asset fund. This is an offering in the hybrid category wherein an investor will get access to three or more asset classes within a single fund. The professional money management of such funds and their ability to change the allocation as per the market situation saves a lot of time and energy of investors.
One of the oldest offering in this category is the ICICI Prudential Multi-Asset Fund. With a track record of over 22 years, the fund has delivered a robust return of 21.39% CAGR, since inception. As of May 31, 2024 the fund has delivered an impressive return of 31.57% over one year and healthy CAGR returns of 22.24%, 19.45% over three years and five years respectively.
