Another mutual fund house is going to make an entry into the multi-asset fund offering. This time it is the world renowned Morgan Stanley Mutual Fund India which is going to launch its mutual fund called the Morgan Stanley Multi Asset Fund.
In this article, we will analyze how good is this Morgan Stanley Multi Asset Fund NFO, whether this Morgan Stanley Multi Asset Fund offers anything new or unique for the investors and whether the investors should invest in Morgan Stanley Multi Asset Fund.
Morgan Stanley Multi Asset Fund NFO: Review Analysis & Details
Let's begin with some basic details about Morgan Stanley Multi Asset Fund.What are the NFO dates for Morgan Stanley Multi Asset Fund?
The NFO period for Morgan Stanley Multi Asset Fund is from 17th January 2012 and will close on 31 January November 2012. After the NFO period, the regular buying and redemption of fund units will start.
What is so unique about this Morgan Stanley Multi Asset Fund?
The unique thing about this mutual fund is that it is offering a mix of 3 different assets for investments - Equity (Stocks), Debt and Gold. So basically, when an investor invests his money in this Morgan Stanley Multi Asset Fund, his invested money will be allocated to 3 different asset classes - Stocks, Debt and Gold - in the proportion as mentioned by the fund managers. Hence, this Morgan Stanley Multi Asset Fund offers a good option for diversified investing. However, investors should note that this kind of product is not the first one to be offered in the Indian markets. There already exists similar triple asset funds - examples are Axis Triple Advantage Fund and Taurus MIP Advantage Fund NFO: Review Analysis & Details, which can also be looked on by the investors. Specially in the way how these existing funds with 3 asset classes have performed in the recent past.
What are the other competitor products available in comparison to Morgan Stanley Multi Asset Fund?
As of now, we are aware of atleast 2 such triple asset funds already available in the market.
1) Axis Triple Advantage Fund and
2) Taurus MIP Advantage Fund NFO: Review Analysis & Details
However, there can be more similar products offerings from other fund houses.
What are the risks of investing and trading Morgan Stanley Multi Asset Fund?
Diversification is good - but it comes at a cost. Investing in more no. of assets will mean more brokerage and transactional costs and fees.
Diversification also leads to limiting the profit, apart from limiting the losses. For e.g., if gold prices shoot up, but returns from stocks is negative, all the profits from increase in gold prices will be nullified by the loss in stocks.
The proportion in which your invested money will be split across the 3 assets will also matter.
Final Thoughts about Morgan Stanley Multi Asset Fund?
Another multi-asset fund offering which may appeal to investors looking for diversification. Although it comes with its own set of risks as mentioned above.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.
Tax benefit will NOT be available in Morgan Stanley Multi Asset Fund.
There will be 2 plans for investors to choose from:
Plan A: Debt and Money market instruments: 80-100%; Equity and Equity Related Instruments: 0-20%.
This plan will NOT have any exposure to Gold.
Plan B: Debt and Money market instruments: 65-100%;[i] Equity and Equity Related Instruments and [ii] Gold Exchange Traded Funds: 0-35% where each of [i] and [ii] will not exceed 20% of net assets.
Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities
Morgan Stanley Multi Asset Fund Entry Load:
Morgan Stanley Multi Asset Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.
SIP or systematic investment plan? Yes, but only through ECS mode.
The benchmark for Morgan Stanley Multi Asset Fund will be a Composite benchmark depending upon the plan:
Plan A: 80% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty
Plan B: 70% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty + 15% Domestic Price of Gold*
Mr. Jayesh Gandhi and Mr. Ritesh Jain will be the fund manager for Morgan Stanley Multi Asset Fund.
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