HDFC Mutual Fund launches Asset Allocator FoF

HDFC Mutual Fund has launched HDFC Asset Allocator Fund of Funds. This open-end fund will invest in the equity, debt and gold schemes of the AMC. The new fund offer (NFO) opened up for subscription on April 16, 2021, and will close on April 30, 2021. Here are the five things that you need to know about the fund. Tell us a bit about the model which you would deploy to determine the asset allocation between equity, debt and gold. What are the key parameters at play and how do they help in arriving at an optimum asset allocation? HDFC Asset Allocator Fund of Funds is a fund of fund scheme that aims to generate capital appreciation by managing the asset allocation between equity-oriented, debt-oriented and gold ETF schemes. Allocation to equity will be based on a financial model. The model considers various valuation parameters which include 1) Twelve-months trailing P/E, 2) One-year forward P/E, 3) Twelve-months trailing P/B 4) Earnings yield/G-sec yield. Further allocation of assets within equity will be based on the extension of t