The Edelweiss Multi Asset Allocation Fund is a hybrid mutual fund that offers a unique blend of debt, equity arbitrage, and commodities to provide consistent accrual income with equity-like tax efficiency. The fund is designed for conservative investors and is managed by a team of experienced fund managers, including Bhavesh Jain, Bharat Lahoti, and Rahul Dedhia. The fund’s portfolio is allocated 56% to high-quality debt, 29% to equity arbitrage, and 13% to gold and silver arbitrage, with a yield to maturity of 6.69% and an average duration of 2.59 years.
The fund’s arbitrage strategy generates steady income while neutralizing market risk, delivering gross annualized returns of 7.2-7.5%, or around 6.2% post-tax. This makes it an attractive option for conservative or retired investors who prioritize tax efficiency and diversification over high-risk growth. The fund’s approach focuses on low volatility, steady accrual, and capital protection, positioning it between debt and equity savings funds on the risk-return curve.
In comparison to other multi-asset funds, Edelweiss Multi Asset Allocation Fund may not deliver double-digit short-term gains, but it offers low volatility, superior tax efficiency, and steady compounding. The fund’s fully hedged arbitrage strategy protects against downside risks, making it less sensitive to equity market swings. Other funds, such as Quant Multi Asset Allocation Fund and DSP Multi Asset Allocation Fund, have taken more aggressive calls and have delivered higher returns over the long term. However, Edelweiss’s consistent and predictable returns make it a defensive yet rewarding choice for investors seeking a blend of stability and growth.
For investors, the Edelweiss Multi Asset Allocation Fund provides a unique opportunity to balance stability and growth. By combining this fund with other funds that offer long-term alpha, such as Quant, investors can create a diversified portfolio that meets their investment goals. However, it’s essential to note that all mutual fund investments are subject to market risks, and investors should consult with a qualified financial advisor before making any investment decisions. Overall, the Edelweiss Multi Asset Allocation Fund is a solid choice for conservative investors seeking steady returns with minimal drawdowns, and its unique blend of debt, equity arbitrage, and commodities makes it a valuable addition to any investment portfolio.