Now Reading: Only one multi-asset mutual fund carries low risk rating
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Only one multi-asset mutual fund carries low risk rating
Of 34 multi-asset allocation funds in India, only one scheme, Edelweiss Multi Asset Allocation Fund, carries a 'Low' risk rating from Value Research, according to AMFI's June data. Five funds are rated…
The Story in Brief
Of 34 multi-asset allocation funds in India, only one scheme, Edelweiss Multi Asset Allocation Fund, carries a 'Low' risk rating from Value Research, according to AMFI's June data. Five funds are rated 'High' risk and 28 are classified 'Very High' risk. No fund falls in the three intermediate categories.
The risk varies sharply because portfolio mixes differ widely. Edelweiss's fund holds nearly 60% in debt and 48% in cash. In contrast, the five High-risk funds have bigger equity stakes, while the Aditya Birla Sun Life scheme, rated Very High, invests 71% in equity. Multi-asset funds must spread across at least three asset classes, but their risk levels depend on the actual allocation, not the category name.
The Indian Opinion
The riskometer reveals what glossy ads hide: multi-asset funds are not all low-risk by default. The narrative that diversification automatically reduces risk oversimplifies the truth. A fund holding 70% equity clearly belongs in Very High territory, just like any equity-heavy scheme. The real test for investors is not the label but the portfolio mix. Look at the debt-equity split before clicking 'invest'.
Source: livemint.com
This story was synthesised by AI from the source linked above.
