Investors beat volatility with asset allocation MFs
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Investors beat volatility with asset allocation MFs
TNN / May 3, 2021, 04:00 IST
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Mumbai: Extreme volatility in recent months in the three most popular asset classes for common people — stocks, bonds and gold — has prompted investors to lap up asset allocation funds. These mutual funds divide investors’ money in a judicious manner among the three asset classes.
The funds also try to provide protection from extreme volatility in the prices of these assets. Financial planners say these funds have historically given higher returns than fixed deposits (FDs), but at a lower risk.
Consider this: In the one year to March 2021, total assets managed by these funds jumped nearly 47% to Rs 15,551 crore. Investments in asset allocation fund of funds too grew, at an even faster rate of 61%, to Rs 11,475 crore, official data showed. In comparison, the total assets of the fund industry grew by 41.4% to Rs 31.4 lakh crore.