#Gold ETF & other commodity ETFs & ETCDs (Exchange Traded Commodity Derivatives)
An open ended scheme investing in equity/equity related securities, debt/money market instruments, commodity ETFs, exchange traded commodity derivatives and overseas securities.
This fund invests in a mix of assets such as equity/equity related securities, debt/ money market instruments, commodities such as Gold ETF, exchange traded commodity derivatives and overseas securities, some of which have relatively low or no correlations with each other. This strategy aims to help reduce the impact of poor performance and volatility in any single asset class within your overall portfolio.
When you invest in assets separately, you also pay separate taxes on each of them. This can lead to higher taxes if you churn more frequently. However, by mixing assets in a structured fund, it allows you to get international equities, debt and gold allocations taxed at lower rates along with the benefit of indexation.
Investing in a multi-asset allocation strategy gives you the opportunity to get equity-like returns but with about half the volatility. Over the last 23 years, domestic stocks (Nifty 50 TRI) gave an annual return of 12.8% with the standard deviation of 22%, whereas a multi-asset approach achieved a 12.2% return with much lower standard deviation of 12%.1
The diversified nature of mixed assets aims to protect the downsides in the portfolio in times of market falls. For instance, during the 2008 financial crisis, domestic equities experienced a drawdown of ~60%, whereas the multi-asset allocation saw a drawdown of only ~30%.2
DSP Multi Asset Allocation Fund invests in domestic equities, international equities, debt/money market instruments, commodity ETFs, Exchange Traded Commodity Derivatives (ETCDs), Units of REITs & InVITs following a quantitative model.
If you're a first time investor starting your investment journey
If you're expecting long-term equity like returns with lower drawdowns
If you're unsure where to invest and looking for a one-stop fund
If you're a seasoned investor looking for favorable taxation in fund structure vs. individual investment
If you want exposure to multiple asset classes at the same time
DSP Multi Asset Allocation Fund carries Very High Risk.
Owing to the nature of the fund, you are exposed to inherant risks of multiple assets such as market risks, credit risks, currency risk and more.
This fund may under-perform the equity market during sudden bull-runs.
This fund may not perform well if all the asset classes underperform simultaneously.
You need an active folio with DSP Mutual Fund to invest in the Scheme.
What is a Multi Asset Allocation Fund?
Multi Asset Allocation Fund is a type of mutual fund that invests in a diversified portfolio of assets across multiple asset classes, such as stocks, bonds, real estate, commodity derivatives, and alternative investments, as prescribed in the offer document. The goal of these funds is to provide investors with a balanced and diversified investment option.
What is the taxation structure?
DSP Multi Asset Allocation Fund follows debt taxation with the benefit of indexation
Can I do both SIP and lump-sum investment in DSP Multi Asset Allocation Fund?
Yes, you can do both SIP and lumpsum investment in this fund.
Who are the fund managers of the fund?
Ms. Aparna Karnik (Equity portion), Mr. Prateek Nigudkar (Equity portion), Mr. Sandeep Yadav (Debt Portion), Jay Kothari (Dedicated Fund Manager for overseas investments) and Mr. Ravi Gehani (Dedicated Fund Manager for Commodities) will be the fund managers of the Scheme.
1 Source – DSP Internal. Data as on 31 Jul 2023. This figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index
2 Source – DSP Internal. Data as on 31 Jul 2023.
During the NFO period, you can invest as low as Rs. 100/- and in multiples of Re.1/-. Note that unit allotment (if you invest during the NFO period) units will be issued at a premium approximately equal to the difference between face value and Allotment Price during the NFO and at NAV based prices on an on-going basis
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.
There is no assurance of any returns/capital protection/capital guarantee to the investors in above mentioned Schemes.
The investment approach / framework/ strategy / portfolio / other data mentioned herein are dated and proposed to be followed by the scheme and the same may change in future depending on market conditions and other factors.
DSP Multi Asset Allocation Fund
An open ended scheme investing in equity/equity related securities, debt/money market instruments, commodity ETFs, exchange traded commodity derivatives and overseas securities
This product is suitable for investor who are seeking*
* Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them.
^Benchmark - 40% NIFTY500 TRI + 20% NIFTY Composite Debt Index + 15% Domestic Price of Physical Gold (based on London Bullion Market Association (LBMA) gold daily spot fixing price) + 5% iCOMDEX Composite Index + 20% MSCI World Index
The product labelling assigned during the New Fund Offer (‘NFO’) is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.