Under this constituent, All the asset class held by a particular mutual fund is broken down and an overall percentage of this is highlighted. For example, equity-based mutual funds will have assets ranging from various equity-based securities. Debt-based mutual fund asset allocations will range from corporate bonds, treasury bills, government securities, and many other market instruments. Asset managers will have a pre-determined objective about the segregation of these assets and based on that the money will be invested. Asset allocations are disclosed by the fund managers at the time of NFO.
Target Allocation
This is an additional feature that is available on our platform which helps in understanding the assets allocated by a fund manager. Target allocation refers to the percentage under which the breakdown of multiple asset classes the portfolio has invested the collected pool of money. In simple terms, an equity mutual fund would primarily focus their target allocation in equity stocks, cash, and equivalents, ReIT's & InvIT's. On the other hand, a debt based mutual fund would allocate the investor funds in corporate debts, cash and equivalents, commercial paper, ReIT's&InvIT's etc.