Nippon India Multi Asset Allocation Fund Regular Plan Growth

Published: 14-10-2025 13:56:01 PM

Investment Objective

Nippon India Multi Asset Allocation Fund aims to provide long term capital growth by investing in equity and equity related securities, debt & money market instruments, Exchange Traded Commodity Derivatives (ETCDs), Gold ETF and Silver ETF.

Investment Strategy

Nippon India Multi Asset Allocation Fund invests in a combination of Equity, Debt, International Equity and Gold ETF/ETCD, Silver ETF/ETCD and other ETCDs.

Stated below are the investment strategies of the Nippon India Multi Asset Allocation Fund for managing its exposure to various asset classes:-

Equity Asset Allocation Investment Strategy

• The fund invests 50%-80% of its portfolio in equity and equity related securities, including overseas equities/overseas ETFs.
• The fund follows a bottom-up approach for stock selection across market caps and sectors.
• The fund focuses on investing in scalable business models with strong growth potential.
• It also seeks global diversification by investing in the MSCI World Index, which tracks the performance of stocks and sectors across 23 developed markets.
• Its stock selection is based on the gap between the fair value and the market price of stocks.
• The scheme does not have any bias towards value or growth stocks.
• The fund is actively managed to generate consistent returns with reasonable alpha.

Commodity Asset Allocation Investment Strategy

• Around 10%–30% of the fund’s portfolio is allocated to various commodities, including Exchange Traded Commodity Derivatives (ETCDs) of metals, energy and indices, to enhance diversification.
• The exposure to any single commodity is limited to a maximum of 10%, except in the case of Gold ETFs.
• The fund does not take any net short positions on ETCDs.
• It also allocates funds in sovereign gold bonds.
• In case of the absence of any opportunities in commodities, the fund may take arbitrage positions in commodities.

Debt Asset Allocation Investment Strategy

• The fund also invests 10%–30% in debt and money market instruments, focusing on the short-term accrual space with exposure to high-grade instruments.
• It seeks to maintain a moderate duration profile, with the duration ranging between two to four years.
• It predominantly invests in good credit quality assets, having the following credit rating:-
  • Issuer quality: At least 85% of its debt exposure to issuers having long term credit rating of AAA with the remaining being invested in AA+ and AA categories.
  • Instrument quality: At least 85% of its debt portfolio would be invested in instruments carrying AAA/A1+ credit rating. The fund avoids short-term debt instruments rated below A1+.
• The scheme focuses on accrual income, aiming to outperform in a bull steepening environment.
• It aims to capture the short end of the yield curve, targeting stable returns with moderate volatility.

Who Should Invest

• Investors seeking one-stop investment solution by combining the growth potential of equities, the stability of debt and the diversification benefits of commodities.
• Those seeking diversification under respective asset classes.
• Those seeking a more tax efficient way of maintaining exposure to multi-asset classes as the rebalancing of asset class exposure is done within the fund itself.