IGI Logo

As the New Year approaches, it’s time to make resolutions that set the foundation for a financially secure future. One such powerful resolution is to leverage the Power of 3 through multi-asset funds to boost your wealth in 2025. With its diversified approach, the Baroda BNP Paribas Multi Asset Fund exemplifies how a portfolio of uncorrelated assets can provide robust risk-adjusted returns allowing you to tackle any speed bumps on the highway to financial prosperity.

The “Multivitamin” for Your Investment Portfolio

The Baroda BNP Paribas Multi Asset Fund combines the growth potential of equities, the stability of debt, the diversification of gold, and the income potential of units of REITs/InvITs. This unique mix acts as a multivitamin for your portfolio, delivering essential nutrients for sustained health and performance.

Since its inception, this fund has delivered an impressive 19.98% return, outperforming its benchmark return of 18.91%. The portfolio allocation as on November 30^th 20024 has approximately 69% in equities, 15% in gold, and 16% in debt and cash, the fund aims to capture the upside of each asset class while cushioning the downside during market fluctuations.

Expertise Meets Flexibility

What sets multi asset funds apart is the latitude it gives fund managers to optimize portfolios. In equities, for instance, fund managers can invest across large-, mid-, and small-cap stocks, ensuring a blend of stability and high-growth opportunities. Similarly, in the debt segment, the fund manager can tactically adjust duration and allocate to government securities or high-quality corporate bonds based on market conditions. In other words, just like a multi vitamin tonic contains micronutrients and trace minerals/elements, a multi asset fund allows all deficiencies to be taken care of in a single product construct.

Why Choose Multi Asset Funds?

Multi-asset funds offer a one-stop solution to build a well-rounded portfolio. The balanced allocation across asset classes mitigates risks, ensuring consistent and stable returns. Multi-asset funds capitalize on the fact that asset classes often behave differently under varying market conditions.

Historically, data show that investing gold with equity and fixed income allocations appears to improve portfolio performance. It reduced the probability of negative returns while

increasing the frequency of returns larger than 10%. While previous performance does not guarantee future outcomes, analysis implies that gold could be an effective diversifier and contributor to portfolio performance.

* Data from April 2002, to November 30, 2024. Returns are average of daily 3-year rolling calculated on daily basis since 30^th April 2005 till November 30, 2024

A New Year, A New Financial Strategy

Start 2025 by investing in the Baroda BNP Paribas Multi Asset Fund. It's a good way to diversify your portfolio and build wealth.

Above views are of the author and not of the website kindly read disclaimer