Consider these three parameters before selecting Multi-Asset Fund along with looking at past returns: Firstly, look at the scheme risk-o-meter level compared to its benchmark’s and its peer group; this will give you an idea of what kind of volatility you can expect in returns. The higher is the level, the more volatile returns are likely to be. Secondly, look at the average equity exposure in the scheme over the last 6-12 months, this will give you an idea around how actively the fund manager manages the asset allocation over time. Lastly, if you can find it, look for the scheme information ratio or IR, which is meant to be disclosed on the asset manager’s website. This ratio measures the risk-adjusted returns generated by a scheme. A ratio above 1 is considered suitable.

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