As markets turn volatile, is investing in multi asset allocation funds a good strategy for retail investors?
The secondary market has been undergoing a lot of pressure lately. Benchmark index Nifty50 has already fallen 16 percent off its peak level. On account of volatility, it is recommended to invest in safer assets which include precious metals such as gold, debt funds and fixed deposits, among others.
Interestingly, retail investors are gradually reducing their exposure to equity schemes, albeit marginally. The latest AMFI data for February revealed that inflow into equity mutual funds declined by 26 percent on a month-on-month basis.
Inflow into equity schemes reduced from ₹39,687 crore to ₹29,303 crore, thus reflecting the confidence of small investors into mutual fund schemes.
It is recommended to explore investing in hybrid…
