“What you could buy for ₹100 a few years ago might now cost ₹105 or ₹110,” Dharmarha said in an interview with ET Now. “That’s why investing across equity, debt, real estate, and precious metals is key to preserving purchasing power — and multi-asset funds make that process seamless.”
Dharmarha explained that these funds combine equities, bonds, gold, silver, and even real estate investment trusts (REITs) within a single portfolio, managed by professionals who dynamically adjust allocations depending on market conditions.
“Over the last year, while equities stayed flat, fund managers shifted towards gold and silver to generate solid returns,” he noted. “That kind of flexibility and expertise is what makes these funds ideal for everyday investors.”
Tax efficiency and simplicity at play
For retail investors, Dharmarha said, multi-asset allocation funds bring multiple benefits—lower costs, smoother operations, and tax advantages.
“These funds are extremely tax-efficient,” he added. “Whether under the one-year or two-year long-term capital gains rules, they’re taxed at just 12.5%. Moreover, any internal portfolio adjustments do not trigger taxes for the investor.”He noted that investors don’t need to constantly rebalance across individual assets or worry about entry and exit timing. “You leave that to the experts — and focus on your goals,” he said.
For whom and how much?
For new investors, Dharmarha suggested multi-asset funds as a perfect starting point. For seasoned investors, he recommended allocating 10–20% of their overall portfolio to these funds to enhance stability.
“For retirees or those recently superannuated, exposure can go as high as 40–50%, given the need for lower volatility and steady returns,” he advised.
Why flexibility matters
Explaining the structural flexibility, Dharmarha said funds with around 35% equity allocation offer greater leeway for fund managers to move between debt, metals, and REITs — compared to those mandated to hold 65% in equities.
“That flexibility allows us to capture opportunities where they emerge — whether it’s gold leading the rally or fixed income offering stability,” he said.
Bottom line
As inflation persists and market cycles turn faster, Dharmarha believes multi-asset allocation funds could become a core part of investor portfolios.
“They simplify diversification, optimize taxation, and help investors stay invested through market ups and downs. Ultimately, they make your money work smarter — not harder,” he concluded.