Investing in the right Portfolio Management Services can be a daunting task for investors. There are many options available in the investing market. Hence, it becomes a challenging task to determine which investment vehicle is suitable for your financial goals.
However, multi-asset and thematic asset funds have been gaining popularity over the past few years.
In this blog, we are going to discuss the significance of investing in multi-asset and thematic asset funds. We also look at the top PMS performers in this regard.
What are ‘Multi-asset Funds’?
Multi-asset funds are investment vehicles that invest in a mix of asset classes. These involve equities, bonds, real estate, commodities, and cash. The aim is to provide diversification, minimize risk, and maximize returns.
Multi-asset funds are also known as balanced funds or asset allocation funds. It’s because this category of funds generally allocates funds among various asset classes. It is done based on market conditions and risk appetite.
What are ‘Thematic Asset Funds’?
Thematic asset funds are investment vehicles that invest in a particular theme or trend. It may include renewable energy, robotics, artificial intelligence, or cybersecurity.
Thematic asset funds are also known as sector funds or focused funds, as they concentrate on a particular sector or theme.
The aim is to capitalize on long-term trends and disruptive technologies that can transform industries and create wealth.
Why should consider a multi-asset PMS fund?
Diversification: Multi-asset funds provide diversification benefits by investing in a mix of asset classes. This diversification reduces risk by spreading investments across different markets, geographies, and sectors.
Therefore, if one asset class underperforms, others can offset the losses through its PMS performance.
Professional management: Professional fund managers manage these funds. They have required expertise to allocate funds across different asset classes based on market conditions and risk appetite.
They use their knowledge and experience to construct a diversified portfolio that can generate superior returns over the long term.
Access to different markets: Multi-asset funds provide access to different markets that may not be accessible to individual investors.
For instance, a multi-asset fund can invest in emerging markets, alternative investments, or private equity. These investing choices may not be available to individual investors. It’s due to high minimum investment requirements or regulatory restrictions.
Tax efficiency: These Portfolio Management Services funds are tax-efficient investment vehicles. They can minimize tax liabilities by using tax-loss harvesting, capital gain’s deferral, and dividend reinvestment strategies.
Therefore, investors can maximize their after-tax returns and reduce their tax burden.
Why invest in thematic asset funds?
Long-term trends: Thematic asset funds invest in long-term trends and disruptive technologies that can transform industries and create wealth.
Renewable energy is a long-term trend that is likely to grow as the world shifts towards sustainable energy sources. Therefore, investing in renewable energy thematic funds can provide exposure to this trend and generate superior returns over the long term.
Diversification: Thematic asset funds provide diversification benefits by investing in a particular theme or trend. If an investor has a significant exposure to the technology sector, investing in a cybersecurity thematic fund can provide diversification benefits. They have a chance of investing in various sectors.
Potential for higher returns: Thematic asset funds have the potential to generate higher returns than broad-based equity funds or index funds. These invest in high-growth companies that can benefit from the theme or trend.
However, investors should be aware of the higher risk associated with thematic asset funds.
Professional management: This type of PMS asset funds are managed by professional fund managers. These fund managers possess the expertise on PMS comparison to identify and capitalize on long-term trends and disruptive technologies.
They use their knowledge and experience to construct a portfolio of companies that can benefit from the theme or trend.
A few things to consider before investing in multi-asset and thematic asset funds:
Before investing in these types of funds, there are a few things to consider. These are:
Investment goals:
Before investing in any fund, it’s essential to consider your investment goals. Are you looking for long-term growth, capital preservation, or a combination of both?
Risk tolerance:
All investments come with some level of risk, and multi-asset and thematic asset funds are no exception. It’s essential to consider your risk tolerance before investing in these funds. Multi-asset funds tend to have lower risk levels than thematic asset funds, which tend to be more volatile.
It’s important to understand the risks associated with each fund and determine if they align with your risk tolerance.
Fund performance:
Past PMS performance is not a guarantee of future results. It can be an indicator of how a fund may perform in the future.
Before investing in a multi-asset or thematic asset fund, it’s essential to research the fund’s historical performance. It would be a little easier to determine if it aligns with your investment goals.
For your convenience, you evaluate the below tables; which depict the best performance of few multi-asset PMS and thematic PMS funds in April 2023.
Performance table in multi-asset and thematic PMS category:
The Top 2 Best Performing Multi Asset PMS in April’23
(Based on last 3 years of performance)
| AMC & Fund Names | Inception Date | Strategy Performance |
| ACE Allocator | Jan-18 | 26.51% |
| ACE Regular Income | Oct-18 | 25.21% |
The Top 3 Best Performing Thematic PMS in April’23
(Based on last 3 years of performance)
| AMC & Fund Names | Inception Date | Strategy Performance |
| Kotak Fintech | Mar-18 | 28.90% |
| Kotak Pharma And Healthcare | Sep-16 | 21.70% |
| Anand Rathi – MNC PMS | Mar-18 | 19.92% |
End note:
Multi-asset and thematic asset funds are significant. Investing in those Portfolio Management Services can be a smart way to diversify your portfolio and potentially maximize returns. You can consult the experts of AIF & PMS Experts India Pvt. Ltd. if you are interested in this investing domain.
You can feel free to call us at 8368586435, and you can reach us through our official email address: [email protected].