Have you ever wondered if your wealth portfolio also needs a health checkup? And if you were to get one, what would it say?
Your physical health deteriorates if your meals are not nutritionally balanced. Likewise, your wealth portfolio also suffers loss if your assets aren’t balanced well
In today’s blog, we’ll focus on Multiple Asset Allocation.
Table of Contents
What is multi-asset allocation?
Multiple Asset Allocation is an investment approach which spreads your money in several different types of assets, such as equity, debt bonds, gold or real estate. This helps balance risk and returns.
It’s like a multi-nutrient meal aimed to keep your portfolio safe and nourished. So, at times when one part of your portfolio performs poorly, others can help control the impact, we call it teamwork!
This mix is revised periodically and rebalanced back to the target if the markets fluctuate more than usual. This is done to keep your risk level aligned with your goals.
What are the benefits of multiple asset allocation?
Some of the main benefits of Multiple Asset Allocation are:
- Diversification: By spreading your investments across multiple assets, you avoid relying on any single asset class. This helps keep losses in control when an asset underperforms.
- Risk reduction: since different asset moves independently or inversely, multiple assets can help lower overall portfolio volatility as opposed to single asset investments.
- Automatic rebalancing: Funds are realigned periodically to target allocation by selling high-performers and buying under performers to maintain balance.
- Flexibility: this approach adapts to economic fluctuations and captures growth in strong assets while keeping losses under control in the weak ones.
- Simplifies investing: offers broad exposure in one vehicle, saving time on research and multiple transactions.
Why is Multi-asset Allocation good for Indian investors?
- Tax efficiency: Multi-asset funds qualify for taxation similar to equity (12.5% LTCG over ₹1.25 lakh after one year) if equity exposure stays above 65%. Unlike pure debt funds taxed at slab rates, ideal for higher earners in progressive tax brackets.
- Gold and commodities counter imported inflation and rupee depreciation, common concerns for Indian investors.
- India’s equity booms contrast with periodic corrections from geopolitics or policy shifts, making single-asset bets riskier. Multi-asset funds align with goals like long-term growth and principal safety, enhanced by gold’s cultural-financial role.
What's the right platform for Multi-asset Allocation?
Multi-asset allocation is important, but practicing it requires greater knowledge in finance, as well as guidance from a trusted professional.
Choose a platform where you can plan your finances under the guidance of a registered investment adviser. At Fydaa, all portfolios are integrated with Multi-asset Allocation, so our users can make use of its diversification and risk reduction benefits.
Our Registered Investment Advisers are just one click away to answer your queries at any step of the process. We do not promise to provide mind-blowing deals, what we do bring to the table is a disciplined approach and structured guidance, so your portfolio stays healthy and nurtured.
DISCLAIMER: Multistrato Capital Advisors Private Limited Type of Registration: Non-Individual. RIA Registration Number: INA000015969 Validity: Perpetual Registered Office Address: #903, EcoStar Building Off Aarey Road, Vishweshwar Road, Goregaon East Mumbai- 400063, India GST number: 27AAHCM9321Q1ZS
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Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
“Investment insecurities market are subject to market risks. Read all the related documents carefully before investing.”
