How does multi-asset allocation fund work for your investment portfolio?

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If you are keen on investing in various asset classes through a single mutual fund then multi asset allocation fund can be a great investment for you. To help you understand the risks, returns, mechanics and specifications of this hybrid fund category Money9 Helpline hosted Moneyfront’s co-founder and CEO, Mohit Gang.

Edited excerpts

EJ: For the long term is it good to invest in China funds. Which will be better Axis or Edelweiss Greater China Fund?

Gang: Your portfolio should have international alloaction from 5-10%. When you are investing in any international market I would suggest first go for US based stocks or market. US Index like NASDAQ and S&P 500 is a more reliable choice. The US market cap is very good and stands on a next level in the overall global market. China can be risky for you. I think you should try US first.

Mrinal Jha: Please suggest a mutual fund category for investment option for 2-3 years

Gang: Your time horizon is very less. You can look for medium-term debt or short term debt. At best you can take balanced advantage fund.