360 One Multi Asset Allocation Fund – launched only 2 months ago, is making industry participants sit up and take note of its blistering start – delivering 8% return over the last month, thanks to its healthy 33% allocation to gold and silver.
The fund – which is positioned as a “debt plus” MAAF as opposed to the “equity minus” positioning of most peers, has stuck true to label with a hefty 45% allocation to debt, followed by 33% to gold and silver and 22% to equity.
Raghav stresses that notwithstanding this flying start, the objective of this fund remains the same: to deliver debt plus returns with relatively lower volatility than peer group, thus appealing to the larger base of savers who want a low volatility inflation fighter.
The debt portion also includes REITs which are enabling a healthier yield on the debt book.
The AMC has in house expertise in commodities which it leverages to decide allocations between gold and silver in this fund. Silver at 17% has a larger allocation than gold at 16% - a reflection of the fund house’s optimism on the white metal.
The fund house remains constructive on precious metals from a medium term perspective. Raghav says the best way for investors to get an exposure to gold and silver is through a MAAF which has a reasonable (rather than a token) allocation to precious metals.
While precious metals may now be volatile after their runup, the fund’s large 45% exposure to debt will act as a good cushion during periods of volatility in equity or in precious metals.
The fund house is constructive on Indian markets especially after the consumption boosting measures from the Government. The worry is more from the US – specifically the AI space where some are beginning to call it a bubble that consumes trillions of dollars with negligible RoI. If these worries mount and AI stocks correct meaningfully, then have the ability to drag down a whole lot more with them.
360 One Asset is now set to launch Dyna SIF – its vertical in the exciting and promising SIF space. Raghav has plans to launch a range of products under Dyna SIF in the coming quarters.