MF– Groww launches Multi Asset Allocation Fund, should you invest? Know here 

Mutual Fund– Grow Mutual Fund has launched a Multi Asset Allocation Fund. This is an open-ended scheme that will invest in a variety of assets. These will include shares, debt, commodities, gold and silver. In the last few years, investors’ interest in multi asset allocation funds has increased. The reason for this is that these funds increase and decrease allocation in different assets according to the situation. Due to this, the fall in any one asset does not affect this fund much.

The NFO will remain open till September

Investment in the NFO of Groww Multi Asset Allocation Fund can be made till September 24. This fund will invest more than 65 percent in shares. It will do this to take advantage of tax rules. If more than 65 percent investment is made in equity, the tax rules of equity funds apply on the fund. Long term capital gains up to Rs 1.25 lakh from equity funds are tax exempt. This fund will invest the remaining 35 percent in debt and commodities.

This fund will use SHAASTRA i.e. Strategic Holistic Asset Allocation and Systematic Technical Risk Assessment. The fund managers of this fund are Paras Matalia, Kaustubh Sule and Wilfred Gonsalves. A lump sum investment of minimum Rs 500 can be made in this fund. A minimum of Rs 100 can be invested through SIP. An exit load of 1% will be charged if redemption is done before 30 days. There will be no exit load on redemption after that.

The benchmark of this fund is the blended index

This multi asset allocation fund from Grow is benchmarked to a blended index comprising Nifty 500 Index TRI (60%), CRISIL Composite Bond Fund Index (30%), Gold INR (5%) and Silver INR (5%). Grow Mutual Fund says that this scheme is ideal for investors who want to enjoy the benefits of investing in different asset classes through a single portfolio.

Should you invest?

The average return of the multi asset allocation category has been 8.12 percent in one year and 16.46 percent in 3 years. However, experts say that one should not decide to invest in a fund by looking at its past returns. Experts can take advice from their financial advisor regarding investing in this fund.

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