Help

Back to Help

Can a mutual fund change the asset allocation while deploying funds of investors?

Ans. Considering the market trends, any prudent fund managers can change the asset allocation i.e. he can invest higher or lower percentage of the fund in equity or debt instruments compared to what is disclosed in the offer document. It can be done on a short term basis on defensive considerations i.e. to protect the NAV. Hence the fund managers are allowed certain flexibility in altering the asset allocation considering the interest of the investors. In case the mutual fund wants to change the asset allocation on a permanent basis, they are required to inform the unit holders and giving them option to exit the scheme at prevailing NAV without any load.

Need Consultancy? Whatsapp Us: +91 9830160912
UTI AMC
HDFC AMC
SUNDARAM AMC
ICICI PRUDENTIAL AMC
MIRAE AMC
SBI AMC
AXIS AMC
ABSL
DSP AMC
FRANKLIN TEMPLETON AMC
KOTAK AMC
MAHINDRA MANULIFE AMC
INVESCO AMC
TATA AMC
MOTILA OSWAL AMC
PGIM AMC
IDFC AMC
L & T AMC
PPFAS AMC