Rally in gold & silver drives outperformance of multi-asset funds

THE MULTI-ASSET FUND category has beaten most debt and equity schemes returns on a year-to-date basis.

- ANANYA GROVER

This was driven by fund houses which had higher gold allocation compared to equity.

Data on Value Research show that on a year-to-date basis, the category average returns of multi-asset has been 10% — the fourth-highest year-to-date returns among all equity and debt categories. Only international equity and two sectoral categories — auto and banks — gave better returns in the range of 10.58%-25.46%.

Pankaj Shrestha, head of investment advisory at PL Capital, explained that the gold and silver component has made a big change in returns and that will still continue on likely safe haven buyingas the dollar is expected to weaken. From January, domestic prices of gold and silver have risen by 51.2% and 65.7%, respectively.