DSP Mutual Fund has launched DSP MAAF, an open-ended scheme offering long-term returns similar to equities but with added market resilience. DSP MAAF aims to reduce overall risk by diversifying investments across various asset classes, including domestic equities, international stocks, debt instruments, goldETFs, commodities, and ETF & ETC Derivatives.
DSP MAAF can invest 35-80% in equities, with 50% in international equities, 10-50% in debt, 10-50% in Gold ETF, 0-20% in other commodities, and up to 10% in REITs & InvITs. Kalpen Parekh, MD & CEO, DSP Mutual Fund say, “Our multi asset fund adds global stocks, precious metals & bonds to Indian equities, thus enabling investors to take advantage of cycles of each of these and eventually stay invested in the fund for longer due to lower fluctuations as against a single asset class.”
Historical data suggests that the best-performing asset class can vary over time, making it difficult to predict the winner each year. To optimize investment, DSP MAAF allocates assets based on long-term expected returns, realized volatility, and correlation among asset classes. Adding low correlation assets can smooth investor experiences, even during downturns. Multi asset models have shown similar returns to domestic equities with lesser volatility.
