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Axis Triple Advantage Fund – Review

July 2, 2010

Axis Triple Advantage Fund, seeks to help investors take advantage of the benefits of diversification by investing in a mix of three asset classes viz. Equity, Bonds and Gold.

Equity – Long Term Growth Stocks – Most volatile with a 30-40% allocation
Bonds – “Classical” diversification in portfolio Low risk compared to stocks with 30-40% allocation
Gold – Hedge against event risks Uncorrelated to other assets 20-30% allocation

The Fund Manager’s rationale for investing in this fund for prospective investors is – The best and worst performer asset class changes year by year, but, 2 out of 3 are positive in most years. Average returns turned negative only once in 15 years and Even a 52% fall in stocks in 2008 was balanced by gains in bonds and gold.

While analysing asset class returns, looking at the range of returns is as important as looking at average returns, The whole is better than the sum of its parts!

Well, don’t be too confused by these hybrid mixture of products being sold through greedy agents. If you are a HNI, then you can take exposure to this, otherwise stick to Diversified Equity Funds for Long Term and don’t forget the SIP – Systematic / Smart Investment Plan.

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