Latest news with #AssetAllocation
Associated Press
08-06-2025
- Business
- Associated Press
Kingston Global Tokyo Japan Publishes 2025 Guide to Asset Allocation ETFs to Aid Investor Decision-Making
Kingston Global Tokyo Japan has released its 2025 Guide to Asset Allocation ETFs: Volume 6, offering insights on global markets, ETF selection, and model portfolios to help investors optimize returns, manage risk, and build diversified, cost-effective portfolios. Tokyo, Japan, June 8, 2025 -- Kingston Global Tokyo Japan is pleased to announce the release of its ' 2025 Guide to Asset Allocation ETFs: Volume 6,' a comprehensive resource designed to help individual and institutional investors navigate the complexities of global markets and construct resilient portfolios. The guide analyzes recent shifts in asset allocation, offers insight into emerging trends, and highlights key exchange-traded funds (ETFs) suited to various risk profiles. According to the company, in an environment marked by fluctuating interest rates, geopolitical tensions, and evolving monetary policies, investors require up-to-date, data-driven analysis to allocate capital effectively. Kingston Global's new guide examines how balanced portfolios combining equities, fixed income, and alternative strategies can optimize returns while mitigating volatility. Drawing on proprietary research and third-party data, the publication provides sector breakdowns, regional weightings, and model allocations aimed at individuals seeking long-term growth, retirees prioritizing income, and institutions managing multi-asset mandates. 'The past year has underscored the importance of diversification and dynamic portfolio management,' says Michael Sherwood, spokesperson for Kingston Global Tokyo Japan. 'Our 2025 Guide to Asset Allocation ETFs offers readers a clear framework for understanding which ETFs can serve as building blocks for their objectives—whether they prioritize capital preservation, income generation, or aggressive growth. We designed this guide to empower investors, both novice and experienced, to make well-informed decisions in an increasingly complex market landscape.' A few of the key highlights from the guide include: The 2025 Guide to Asset Allocation ETFs is freely available on the Kingston Global blog at Readers can download the guide or access it online to review detailed charts, tables, and expert commentary. For more information, please visit About Kingston Global Tokyo Japan Kingston Global Tokyo Japan is a Tokyo-based financial consultancy dedicated to providing comprehensive investment and planning services to individuals, families, businesses, and institutions. Leveraging expertise in Education Planning, Estate Management, Finance Planning, Organizational Solutions, Overseas Investments, and Retirement Planning, the firm delivers customized strategies designed to maximize returns while managing risk. With a commitment to professional excellence and a client-first approach, Kingston Global Tokyo Japan helps clients achieve their financial objectives through informed decision-making and proactive support. Contact Info: Name: Michael Sherwood Email: Send Email Organization: Kingston Global Tokyo Japan Phone: +813 6863 5291 Website: Release ID: 89161884 Should you come across any errors, concerns, or inconsistencies within this press release's content, we urge you to reach out without delay by contacting [email protected] (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our committed team will promptly address your feedback within 8 hours and take appropriate measures to resolve any identified issues or guide you through the removal process. Providing accurate and dependable information remains our utmost priority.
Time of India
31-05-2025
- Business
- Time of India
Balanced advantage vs. Multi Asset Allocation Mutual Funds: Which should investors choose?
Balanced Advantage / Dynamic Asset Allocation Funds Live Events Multi Asset Allocation Funds Key differences Which fund type should one choose? Way forward for these categories In the diverse universe of mutual funds , understanding the distinction between various hybrid categories is crucial to making informed decisions. Two popular choices for investors seeking a balanced risk-return approach are Balanced Advantage Funds (BAFs), also known as Dynamic Asset Allocation Funds (DAAFs), and Multi Asset Allocation Funds While both aim to manage market volatility and deliver consistent returns, they differ significantly in structure, asset composition, and investment philosophy. Here's a breakdown of how they work and how investors can choose between advantage funds or dynamic asset allocation funds are designed to dynamically shift between equity and debt based on changing market conditions. Fund managers use internal models that assess valuation metrics, momentum, and macroeconomic indicators to decide how much exposure should be allocated to equity or debt at any given time. The equity allocation in these funds can vary widely, typically ranging from around 30% to over 80%, depending on the fund house's model. The debt portion acts as a buffer, helping reduce volatility during market downturns.A unique advantage of BAFs is that many of them maintain an average equity exposure above 65%, often through arbitrage positions. This allows them to qualify for equity taxation, which is more favourable than debt taxation over the long term. The goal of these funds is to provide stable, equity-like returns while limiting downside risks through timely asset rebalancing. Investors who want market participation without full equity volatility often find BAFs an attractive core asset allocation funds, as per SEBI guidelines, are required to invest in at least three asset classes — usually equity, debt, and commodities like gold — with a minimum of 10% in each. This structure inherently provides broader diversification compared to BAFs, as the inclusion of non-correlated assets such as gold helps reduce overall portfolio funds typically maintain a mix where equity forms the core, supported by fixed income instruments and gold or other commodities. Unlike BAFs that dynamically change their equity-debt allocation based on models, Multi Asset Funds often rebalance periodically rather than tactically. The objective here is to deliver stable returns across different market cycles, relying on the varying performance of asset classes rather than frequent tactical shifts. For investors who believe in the long-term benefits of diversification across asset classes, multi asset funds offer a one-stop most fundamental difference lies in the asset mix. While BAFs primarily toggle between equity and debt based on valuation models, Multi Asset Allocation Funds include at least three asset classes and maintain a minimum allocation to are typically more dynamic, with frequent shifts between asset classes to respond to short-term market movements. In contrast, multi asset funds may follow a more stable rebalancing strategy, providing smoother returns but potentially lower agility during sharp market terms of taxation, most BAFs enjoy equity taxation because they maintain the required equity exposure through direct holdings or derivatives. Multi Asset Funds, however, may not always qualify for equity taxation depending on the actual breakdown of the portfolio, which could affect post-tax balanced advantage funds enjoy equity taxation which means investors who hold for more than a year pay 12.5% tax. In the case of multi-asset funds, some schemes that allocate more than 65% to equity enjoy equity taxation. However, there are some conservative schemes that have 35-65% allocated to equity, where investors who hold for more than 2 years pay tax at 12.5%, while those that sell before 2 years pay slab-based distinction is that while BAFs usually exclude commodities, Multi Asset Funds mandate exposure to gold or other non-equity, non-debt assets, offering better diversification in times of inflation or global Advantage or Dynamic Asset Allocation Funds are ideal for investors who want active equity participation but with an in-built cushion during market downturns. These funds are particularly useful for conservative investors looking for equity exposure without fully bearing the volatility of the stock market. They are also suitable for long-term investors who prefer tax-efficient options and want the fund manager to adjust allocations based on market the other hand, Multi Asset Allocation Funds are a good fit for investors who value broad diversification and want exposure to different asset classes like gold, which can act as a hedge during economic instability or inflation. These funds tend to be more conservative in their allocation and are appropriate for moderate-risk investors who believe in riding different market cycles through asset diversification rather than timing or tactical Balanced Advantage and Multi Asset Allocation Funds serve the purpose of managing portfolio risk, but through different mechanisms. While BAFs rely on dynamic shifts between equity and debt based on market signals, Multi Asset Funds take a more structured diversification route involving a broader set of asset choice should ultimately depend on your investment goals, risk tolerance, and belief in either tactical allocation or strategic diversification. In many cases, combining both types within a portfolio can create a well-rounded investment strategy suited for various market the investor has a medium- to long-term horizon, partial deployment in balanced advantage or multi-asset funds can serve as a middle ground, offering market participation with downside buffers,' Sagar Shinde, VP Research, Fisdom shared with sharing the way forward for multi asset allocation funds, Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai told ETMutualFunds that one can hold multi asset allocation funds in the portfolio especially in volatile markets as they can help preserve capital and deliver more stable returns over time compared to pure equity funds.'Gold, for instance, has emerged as one of the strongest-performing asset classes in recent years, especially during times of global uncertainty. Its presence in the portfolio can act as a natural hedge, offering protection when equities are under pressure. However, it is important for investors to understand the fund's asset allocation model and strategy as this will influence how the fund performs across different market cycles,' Dhawan adds.
