What are dynamic asset allocation funds? 5 key points to know
1.Dynamic asset allocation funds are categorised under hybrid mutual fund schemes.2.These funds invest in asset classes such as equity and debt, adjusting their allocations dynamically based on the market conditions.
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4.Since the fund invests in more than one asset class, the portfolio risk is reduced.
5.Such funds are suitable for beginner investors, who may not fully understand the market. This is because they don’t need to time the market.
Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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This story originally appeared on: India Times - Author:Faqs of Insurances
