DSP's Aparna Karnik: Multi-Asset Funds Focus on Balance, Not Gold
DSP's Aparna Karnik: Multi-Asset Funds Focus on Balance, Not Gold
Aparna Karnik explains how multi-asset funds seek balanced, risk-adjusted returns through disciplined diversification and strategic asset mix.
Multi-asset funds, according to Aparna Karnik of DSP Mutual Fund, are about balance rather than chasing short-term gains in gold or equities. The approach centers on disciplined diversification, calibrated equity exposure, and systematic rebalancing, with selective allocations to REITs, InvITs, and commodities to seek smoother, risk-adjusted returns across market cycles.
She explains that the DSP Multi Asset Allocation Fund uses a quantitative framework that dynamically recalibrates exposures across domestic equity, global equity, debt, commodities, and real assets to mitigate drawdowns while preserving upside participation. Exposures are kept within predefined bands for each asset class, with measured tactical shifts when valuations or risk-reward dynamics change.
For example, overall equity exposure is typically held closer to 50% when valuations are stretched, and may move toward 70% when earnings visibility and margin of safety improve. Within equities, allocations are diversified across sectors and geographies to enhance alpha and manage risk. The fund typically maintains 10–30% in high-quality fixed income to provide stability and potential capital gains during slowdowns. Income-generating real assets like REITs and InvITs add yield with growth optionality.
By focusing on balance rather than market timing, multi-asset funds aim to participate in growth while cushioning drawdowns, delivering steadier returns through varied market environments.
