Nippon India Multi Asset Fund

1. What type of fund is Nippon India Multi Asset Fund?

Nippon India Multi Asset Fund differs from traditional equity or debt funds because of its flexibility to invest across various asset classes (including equities (stocks), debt instruments, and other commodities).

It has been designed to provide investors with a diversified investment approach.

This mutual fund scheme aims to seek capital appreciation in the long term. Investing in this fund can be particularly beneficial for you from the perspective of the growth potential of various asset classes while helping to reduce risk through diversification.

The most important feature of Nippon India Multi Asset Fund is that it has a definite asset allocation that is designed to participate in the underlying asset classes across market cycles. Over last three years our asset allocation has been around 50:20:15:15 in Domestic Equity, International Equity, Debt & Commodities respectively.

2. What is the current NAV of Nippon India Multi Asset Fund?

The Net Asset Value (NAV) of Nippon India Multi Asset Fund, as of October 11, 2023, stands at 15.2540. The NAV is a critical metric for investors as it represents the per-unit market value of the fund's assets after accounting for all expenses and liabilities. It essentially tells you what one unit of the fund is currently worth in the market.

The NAV is subject to fluctuations due to the performance of the underlying assets, including equities and other assets within the portfolio. You can monitor the NAV to assess the changing value of your investments and make decisions regarding buying or selling units in the fund.

3. What is the AUM of Nippon India Multi Asset Fund?

The Assets Under Management (AUM) of Nippon India Multi Asset Fund, as of March 31, 2023, is Rs. 1155.17 Crores. AUM represents the total market value of all the assets held within the fund and is a key indicator of the size of the fund and investor interest.

Before investing in this fund, you can pay attention to its AUM to assess its popularity and capacity to manage the investments effectively.

4. How to invest in Nippon India Multi Asset Fund?

To start your investment journey with Nippon India Large Cap Fund, adhere to the following steps:

• Commence by visiting the official Nippon India Mutual Fund website.
• You have two options at this stage: click on the 'Quick Invest' button or 'Register' to create your account.
• Explore the diverse range of available funds, and identify 'Nippon India Multi Asset Fund' within the list of choices.
• Select the investment plan that best aligns with your financial objectives and personal preferences.
• Specify the amount you wish to invest in the fund. The website will promptly calculate the number of units you'll receive based on the current NAV.
• During the registration process, provide the necessary personal and contact information.
• Fulfil the obligatory Know Your Customer (KYC) requirements, as mandated by regulatory guidelines.
• Enter your bank details, choose your preferred payment method, and proceed to confirm your investment.

5. What are the top stock holdings of Nippon India Multi Asset Fund?

As of August 31, 2023, the top stock holdings of Nippon India Multi Asset Fund are:

• HDFC Bank Ltd. (1.68%)
• Reliance Industries Ltd. (3.32%)
• ICICI Bank Ltd. (3.21%)
• Infosys Limited (2.18%)
• NTPC Limited (1.81%)
• State Bank of India (1.71%)
• ITC Limited (1.59%)
• Tata Motors (1.49%)
• Power Finance Corporation Ltd. (1.38%)

Here, multiple stocks in the portfolio demonstrate a commitment to diversification. By holding positions in various companies across different sectors, the fund aims to spread risk and reduce its reliance on the performance of a single stock or industry. The allocation percentages reveal how the fund distributes its assets among different stocks.

6. Who is the Fund Manager for Nippon India Multi Asset Fund?

Nippon India Multi Asset Fund’s managerial team comprises experienced professionals, including Mr Vikram Dhawan, Mr Sushil Budhia, Mr Ashutosh Bhargava, Ms Kinjal Desai, Mr Tejal Sheth and Mr Akshay Sharma. These skilled individuals are responsible for making investment decisions, asset allocation, and ensuring that the fund aligns with its investment objectives.

The diverse expertise of these fund managers enables them to navigate various asset classes and market conditions. Collectively, they aim to optimise returns and manage risk effectively so that the investors can have confidence in the fund's management.

7. How Does Nippon India Multi Asset Fund fit into my investment portfolio?

Nippon India Multi Asset Fund can play a crucial role in diversifying and enhancing your investment portfolio. For instance, you can fit it into your investment strategy for diversification benefits. By adding this fund to your portfolio, you can achieve diversification and spread risk across different types of investments. This way, you can also reduce the effect of poor performance in any single asset class and contribute to a more stable portfolio. Also, along with popular asset classes like Equity & Debt, this fund more importantly allows you to take exposure to precious metals like Gold/ Silver through Gold ETF’s & ETCDS

The fund's strategic allocation and active management are designed to manage risk effectively. It allows you to access the expertise of professional fund managers who make informed decisions to optimise returns while mitigating risks. This can be particularly beneficial in uncertain market conditions.

8. How much does Nippon India Multi Asset Fund charge as an expense ratio?

Nippon India Multi Asset Fund can be an attractive addition to your investment portfolio for several reasons, one of which is its expense ratio. The fund's expense ratio stands at 1.73% as of October 11, 2023, notably less than the category average of 1.82%.

The lower expense ratio can be an advantage for you, implying that a smaller portion of your returns is used to cover operating expenses and management fees. This cost-efficiency can lead to higher net returns over time, enhancing the overall performance of your portfolio. It can also help you keep more of your returns, which can benefit those with a longer investment horizon.

9. Can Nippon India Multi Asset Fund be used for long-term wealth creation?

Nippon India Multi Asset Fund can be a suitable choice to create wealth over the long term. Several reasons make it conducive for this purpose, including exposure to a mix of asset classes (including equities, debt, and other commodities) and professional management by a team of experienced professionals who actively allocate assets and make investment decisions.

Whether your financial goals involve growing wealth or preparing for future needs, the fund's approach to various asset classes may align well with your objectives. Before you incorporate this fund into your portfolio, you should clearly understand your investment objectives, risk tolerance, and time horizon.

10. What key features make Nippon India Multi Asset Fund stand out?

Nippon India Multi Asset Fund stands out due to its unique combination of key features, making it a compelling choice for investors. Below are the key features:

• Relatively better Risk Adjusted Returns: Asset classes follow different cycles over different time periods; a well-diversified multi asset fund can potentially aid in better risk-adjusted returns
• Reduces Timing Risk: Through optimal diversification, the fund seeks to lower market timing risk.
• One-Stop Solution: Given its inherent risk management Multi Asset Funds can considered for all types of investor categories from ‘Beginners to Retirees’
• Tax Benefit: Eligible for Tax Benefit

11. Is Nippon India Multi Asset Fund good?

The suitability of Nippon India Multi Asset Fund depends on your risk tolerance, financial goals, and investment strategy. Whether the fund is good for you is subjective and should be assessed in the context of your specific needs. However, here are some factors you can consider to assess its suitability:

• The fund offers diversification across asset classes, which can benefit risk management. If you seek diversification in your portfolio, it may align with your goals.
• If your financial objectives include long-term capital appreciation, this fund's primary focus on growth potential may be a good fit.

12. What is the asset allocation strategy of Nippon India Multi Asset Fund?

Nippon India Multi Asset fund adopts a strategic allocation approach with investments across 4 diverse categories as given hereunder

Equity 50%

• Bottom up stock selection approach across market caps & sectors.
• Blended investment approach
• Focus on the Scalability of the business model
• Large Cap oriented with some allocation to quality mid caps

Overseas Equities (20%)

• Focus on developed markets for effective diversification (Indian equities represents Emerging Markets)
• MSCI World Index will be the investment universe. It tracks performance of stocks/sectors across 23 developed countries.

Commodities (15%)

• Flexibility to invest in various commodities to provide diversification even within commodities
• Gold will be a key diversifier given low correlation to equity & debt
• Investment in ETCDs of Metals, Energy and indices as permitted by SEBI from time to time.

Debt & Money Market Instruments (15%)

• Focus on short-term accrual space with allocation to high grade instruments.
• Moderate Duration range usually between 2-4 Yrs

The allocation strategy focuses on optimising potential risk-adjusted returns by investing across diverse asset categories with low correlation. The same is elucidated further in the following illustration-

Equity & commodities have negative correlation which means, when equity markets are experiencing the bear run, gold prices usually appreciate, thereby hedging the risk.

13. Do I have to time the market while investing in Nippon India Multi Asset Fund?

Market timing, which refers to the practice of trying to predict the best moments to buy or sell mutual fund units, is quite challenging and carries a high degree of risk. It can lead to suboptimal investment decisions. Therefore, timing the market is neither necessary nor advisable.

The best time to invest in the fund depends on your individual financial goals, risk appetite, and the duration for which you can continue to stay invested.

Here are some considerations to keep in mind:

• If you have long-term financial goals, such as retirement planning or wealth accumulation over several years, you can invest in this fund at any time. This is because long-term investments have the potential to benefit from compounding returns.
• Attempting to time the market based on specific times of the year can be challenging and speculative. Therefore, adopting a disciplined, long-term investment strategy is generally advisable rather than trying to predict short-term market movements.

14. Does market volatility impact the returns I can expect from Nippon India Multi Asset Fund?

Market volatility can impact the returns you expect from Nippon India Multi Asset Fund, as with any other market-linked investment. Multi-asset funds, including Nippon India Multi Asset Fund, typically invest in various asset classes. In periods of high market volatility, equity prices can experience significant fluctuations (both positive and negative) and may lead to fluctuations in the fund's overall value.

15. Is Nippon India Multi Asset Fund suitable for first-time investors?

Nippon India Multi Asset Fund can be a viable option for first-time investors, albeit with some considerations. The suitability of this fund depends on your individual goals and risk-taking capacity.

This fund provides diversification across multiple asset classes, which can help mitigate risk - a feature particularly appealing to those who are new to investing. It is actively managed by seasoned professionals, which again can offer a level of assurance to investors who may be less experienced in making investment decisions. Moreover, the fund's focus on long-term capital appreciation can align well with the financial goals of first-time investors.

While Nippon India Multi Asset Fund has its advantages, it's advisable for first-time investors to conduct research, understand risk tolerance, and set clear goals.

This fund may suit for investors of all ages, and all stages of investing. It’s a ‘Fund-for-all’

16. Is it safe to invest in a multi asset fund?

Investing in a multi-asset fund, like Nippon India Multi Asset Fund, may be a relatively safe option compared to investing solely in individual stocks or riskier asset classes. However, it is important to understand that no investment is entirely risk-free, and the level of safety depends on various factors.

For instance, multi-asset funds are subject to market fluctuations, and their performance can vary in response to economic and market changes.

While multi-asset funds aim to balance risk and returns, they still carry some risk. Therefore, aligning the fund's risk profile with your risk tolerance and financial goals is essential.

17. What is the track record of Nippon India Multi Asset Fund in terms of consistent returns?

Its 1-year CAGR stands at 13.97%. This figure showcases the fund's performance in the short term, and it suggests that it has been capable of delivering positive returns to investors during this period. Over the 3-year period, the fund has demonstrated even more consistent returns with a 15.15% CAGR. This longer-term performance measurement reflects its ability to deliver steady and positive returns to investors over a more extended period.

However, it's crucial to remember that past performance does not guarantee future results, various factors can influence its future performance.

18. How to choose a multi asset fund?

Choosing a multi-asset fund involves a thoughtful process to align the fund. You can start by clearly defining your financial objectives, including long-term wealth accumulation, income generation, or a balanced approach. Similarly, choosing one that aligns with your comfort level is important. You can consider how much market volatility you can tolerate without making hasty decisions.

You can avoid limiting your search to a single fund. Research multiple multi-asset funds to compare their investment strategies, historical performance, and expense ratios.

In terms of performance, you can examine the historical performance of the funds you're considering. Look at their past returns, both short-term and long-term, to gauge how they have performed under various market conditions.

Please also check for the allocation across asset classes, so as to meet your expectations. Is the fund truly diversified is nature! If the answer is yes it may be the right fund for you.