Different asset classes perform differently and there's no consistent winner in this game. Since each asset class has unique characteristics and a distinctive way to react to market and economic conditions, their performance doesn’t move in tandem.
Different asset class, Different Times, Different Performance
Outperformance with respect to other asset classes | Source: nseinida.com, MFIExplorer, world gold council and Amfi India | Data from January 1, 2012 to October 31, 2022| The above illustration is for comparison purpose only and should not constitute as investment advise |Baroda BNP Paribas Mutual Fund does not guarantee returns on investments in these asset classes. Past performance is no guarantee for future returns.
The problem
Performance of asset class gets impacted based on the market cycles which are getting shorter and shorter. This makes it even more difficult to predict which asset class will perform better in the current or certain period and even more difficult to invest in each asset individually
The solution
A Multi Asset Fund managed by an expert fund manager that invests across all three assets aims to help you earn optimal risk-adjusted returns. It can help you to remove all your worries regarding market uncertainty and assist you to achieve your financial goals.
Additionally, a Multi Asset Fund empowers your portfolio with the benefits of all three asset classes:
Benefits of investing in Equity
- Potential for long-term wealth creation
- Inflation-beating returns
Benefits of investing in Debt
- Diversification
- Generates Income
Benefits of investing in Gold
- Hedge against Geo-Political Risk & currency fluctuations
- Better risk-adjusted returns
Furthermore, investment in Multi Asset Fund:
✓ Reduces dependency on the performance of single asset class
✓ Saves the operational hassles of investing in multiple asset classes
So invest in Multi Asset Fund which invests in all three asset classes and aims to strengthen your portfolio to perform better across different market cycles.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.