Groww MF has launched its new Multi Asset Allocation Fund (its first launch in 8 months) in an environment of heightened uncertainty where investors are looking for direction on how to wisely invest in these conditions.
Groww MF has developed SHAASTRA – a data analytics driven platform which will be used initially to guide its new MAAF’s asset allocation decisions and over time can guide a variety of products from the fund house, based on individual mandates.
Groww’s MAAF has built in guardrails that ensure adequate diversification across asset classes – the objective is not so much to take big asset timing calls but more to deliver smoother investment experiences through superior risk adjusted returns.
Net equity can range between 40-80% but more likely to remain in the 50-70% range outside of market extreme situations. Precious metals can range from 15-35%, but more likely will be in the 15-25% range and debt will also likely be in the 15-25% range.
SHAASTRA is currently guiding around 55% in equity, 20% in precious metals (14% in gold and 6% in silver) and 25% in debt.
To ensure equity taxation, gross equity exposure (including arbitrage) will be maintained at 65% or above.
The equity portfolio will be actively managed in a flexicap format, with a tilt towards large and midcaps.