Motilal Oswal AMC will launch the Motilal Oswal Multi Asset Fund on July 15. This is an an open ended fund belonging to multi asset allocation category, the fund's investment objective is to generate long term capital appreciation by investing in a diversified portfolio comprising of Equity, International Equity Index Funds/ Equity ETFs, Debt and Money Market Instruments and Gold Exchange Traded Funds.
"Different asset classes react differently to business cycles, changes in economy & geo-political realities and hence have different levels of risk. Allocating funds solely to a single asset class is not prudent as it is prone to behave inconsistently, go through its own cycles and may not garner efficient inflation and risk adjusted returns. Asset allocation tries to balance the risk by dividing assets among investment vehicles. Low correlation among different asset classes provide the portfolio with an effective hedge lowering the volatility of the portfolio," a press release stated.
Fund aims to invest in four asset classes, namely, Equity, International Equity, Debt and Gold
Lower correlations among assets helps to reduce portfolio volatility
Favourable Risk adjusted returns over any individual asset class
Investments in Gold and International Equities : to provide a hedge against inflation & diversification