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Time of India
4 days ago
- Business
- Time of India
How to earn decent returns with lower risk: Multi-asset allocation funds deliver; outperform Sensex in 3 & 5 years
Multi asset allocation funds have outperformed the Sensex in the past five years. Want to earn decent returns at lower risk? Go for multi asset allocation funds that invest in a mix of equity, debt and commodities. These funds invest in at least three asset classes, with a minimum allocation of at least 10% to each. Indeed, a diversified portfolio is the best way to get past volatile asset prices. In the past three years when asset prices have been very volatile, the multi-asset allocation category has delivered nearly 17% compounded annual returns. Interestingly, much of these gains have come not from equities but the exposure to gold and silver. While the Sensex has delivered a CAGR of 15.05% in the past three years, gold and silver rallied more than 22%. In other words, multi asset allocation funds have delivered higher returns at lower risk. Diversification cuts risk Multi asset allocation funds have outperformed the Sensex in the past five years Investment 1-year returns (%) 3-year returns (%) 5-year returns (%) Sensex 3.81 15.05 17.79 Debt (dynamic bond) 8.29 7.5 5.71 Gold 30.98 22.4 13.33 Multi Asset Allocation funds 5.57 16.96 18.49 Data as on 10 July 2025, Source: Value Research Three and five-year returns are annualised The Franklin Templeton Multi-Asset Allocation Fund NFO that opens today is an investment worth considering for conservative investors who want to diversify across different asset classes. The Franklin fund will invest in a mix of equities, fixed income instruments, gold and silver. The fund will be benchmarked against Nifty 500 (65%), Nifty Short Duration Index (20%), domestic price of gold (5%) and silver (5%) and the iCOMDEX composite Index (5%). 'In the current volatile environment — where equity valuations are elevated and bond yields are stabilizing — a portfolio combining these asset classes with commodities like gold can deliver superior risk adjusted returns,' said Avinash Satwalekar, President, Franklin Templeton–India. Other experts agree with Satwalekar. 'This is not the time to be overly aggressive. The path lies in maintaining a diversified portfolio that can absorb shocks and still participate in potential upside,' said Viraj Gandhi, CEO of Samco Mutual Fund. Another big advantage that multi-asset allocation funds offer is the favourable tax treatment of the gains. Both long-term and short-term capital gains from gold and silver ETFs and debt funds are now taxed at the slab rate of the investor. But if these are bundled into a single fund that invests at least 65% in domestic stocks, the tax impact is much lower. 'If a fund invests 65% or more of its corpus in domestic equities, it will be treated as an equity scheme for tax purposes,' says Nishant Khemani, Managing Partner of the Saturn Consulting Group. Long-term capital gains of up to Rs 1.25 lakh a year will be tax free. Beyond Rs 1.25 lakh in a year, the gains will be taxed at 12.5%. Short term gains will be taxed at 20%. The holding period for long-term gains is also shorter at one year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
6 days ago
- Business
- Time of India
NFO Alert: Franklin Templeton Mutual Fund launches multi-asset allocation fund
Franklin Templeton (India) has announced the launch of Franklin India Multi Asset Allocation Fund (FIMAAF), an open-ended multi asset allocation fund investing in equity, debt and commodities. The new fund offer or NFO of the fund will open for subscription on July 11 and will close on July 25. During the NFO period, the units will be available at Rs 10 per unit. The fund will reopen for continuous sale and repurchase on August 4. Also Read | Investing in JioBlackRock Liquid Fund? Find out 1-month to 1-year return of other liquid funds Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo This dynamically managed fund will aim to generate long-term capital appreciation by investing in equities with a blend of growth and value strategies across large, mid and small cap segments, complemented by allocations to debt, money market instruments, and commodities, according to a press release by the fund house. "The launch of this fund reflects our commitment to understanding our clients' priorities, goals and challenges – and delivering solutions that are aligned with their long-term financial objectives. FIMAAF adopts a flexible allocation strategy that is designed with an aim to leverage the distinct risk-return profile of equities, fixed income, and commodities,' said Avinash Satwalekar, President, Franklin Templeton–India Live Events 'In the current volatile environment — where equity valuations are elevated and bond yields are stabilizing — a portfolio combining these asset classes with commodities like gold can deliver superior risk adjusted returns,' he added. He further added, 'We strongly believe that FIMAAF, guided by our proprietary global model integrating macroeconomic indicators with qualitative insights from our portfolio managers, can offer a compelling investment solution for our clients." The fund will be benchmarked against 65% Nifty 500 + 20% Nifty Short Duration Index + 5% Domestic price of gold+ 5% Domestic price of silver + 5% iCOMDEX composite Index and will be managed by Janakiraman Rengaraju, Rajasa K, Rohan Maru, Pallab Roy, Sandeep Manam. Also Read | Quant Small Cap Fund adds Siemens Energy India, 5 others; exits ITC in June For fresh purchase, the minimum amount is Rs 5,000 and for SIP, the minimum amount is Rs 500. For additional purchase, the minimum amount is Rs 1,000. For redemption, the minimum amount is Rs 1,000. The amount for subscription and redemption in excess of the minimum amount specified above is any amount in multiple of Re 1. 'Equity investments are crucial for portfolio growth but are inherently subject to volatility and periodic corrections. While our long-term outlook for India is positive, some of the factors weighing on the markets in the near term are modest earnings growth, high valuations and geopolitical risks. In such an environment, exposure to other asset classes like debt and gold that have useful and low correlation with equities can help cushion the volatility and drawdowns of the portfolio,' said Janakiraman R , Chief Investment Officer – Emerging Markets Equity-India, Franklin Templeton. 'Keeping this in mind, we are offering a fund that diversifies across multiple asset classes. For equity allocation, Franklin India Multi Asset Allocation Fund uses a bottom-up QGSV framework (Quality, Growth, Sustainability & Valuation) for stock selection and adopts a well-diversified strategy across sectors and market capitalizations,' Janakiraman R added. In respect of each purchase of units, upto 10% of the units may be redeemed without any exit load within one year from the date of allotment. Any redemption in excess of the above limit shall be subject to an exit load of 0.50 %, if redeemed on or before one year from the date of allotment, the exit load will be nil, if redeemed after 1 year from the date of allotment Also Read | Mutual fund SIP inflows surge past Rs 27,000 crore for the first time in June 'Over the last 20 years, the top-performing asset class has varied periodically between equities, fixed income and commodities. Hence, a portfolio with an optimal asset allocation amongst them from time to time can provide investors with a balanced strategy that offers growth potential with lower downside risk,' said Rahul Goswami , Chief Investment Officer, India Fixed Income, Franklin Templeton. 'The debt portion of Franklin India Multi Asset Allocation Fund aims to balance safety, liquidity, and returns by actively managing portfolio maturities according to its investment objectives. Utilizing in-house research capabilities, the team will look beyond credit ratings to identify high-quality fixed income opportunities, primarily focusing on AAA-rated instruments,' Goswami added.
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Business Standard
6 days ago
- Business
- Business Standard
Franklin launches India Multi Asset Allocation Fund; check key details here
Franklin India Multi Asset Allocation Fund: Franklin Templeton (India) is set to launch its Franklin India Multi Asset Allocation Fund, an open-ended multi asset allocation fund investing in equity, debt and commodities. The fund will aim to generate long-term capital appreciation by investing in equities with a blend of growth and value strategies across large, mid and small cap segments, complemented by allocations to debt, money market instruments, and commodities. The new fund offer (NFO) will open on July 11, 2025 and close on July 25, 2025. According to the scheme information document (SID), the scheme aims to generate long-term capital appreciation by investing in equity and equity-related instruments, debt, money market instruments and commodities. However, there can be no assurance that the investment objective of the scheme will be achieved. Avinash Satwalekar, president at Franklin Templeton (India), said, "The launch of this fund reflects our commitment to understanding our clients' priorities, goals and challenges – and delivering solutions that are aligned with their long-term financial objectives. FIMAAF adopts a flexible allocation strategy that is designed with an aim to leverage the distinct risk-return profile of equities, fixed income, and commodities. In the current volatile environment, where equity valuations are elevated and bond yields are stabilising, a portfolio combining these asset classes with commodities like gold can deliver superior risk-adjusted returns.' He further added, 'We strongly believe that FIMAAF, guided by our proprietary global model integrating macroeconomic indicators with qualitative insights from our portfolio managers, can offer a compelling investment solution for our clients." According to the Scheme Information Document (SID), the performance of the scheme will be benchmarked against the Nifty 500 index (65 per cent), Nifty Short Duration Index (20 per cent), Domestic price of gold (5 per cent), Domestic price of silver (5 per cent), and iCOMDEX composite index (5 per cent). During the NFO, investors can invest a minimum of ₹5,000 and an additional purchase of ₹1,000 for subscription. Through a Systematic Investment Plan (SIP), the minimum investment amount is ₹500. According to SID, up to 10 per cent of the units can be redeemed without any exit load within one year from the date of allotment. However, any redemption in excess of the above limit shall be subject to a 0.50 per cent exit load if redeemed on or before 1 year from the date of allotment. No exit load will be charged if redeemed after one year from the date of allotment. Janakiraman Rengaraju, Rajasa K, Rohan Maru, Pallab Roy, and Sandeep Manam are the dedicated fund managers for the scheme. Franklin India Multi Asset Allocation Fund: Who should invest? According to the SID, the scheme is suitable for investors seeking long-term capital appreciation and investment in equity, debt and commodities. However, investor should consult their financial advisors if in doubt about whether the product is suitable.
