Mumbai, March 18 -- Over the past few years, a new fund category-multi-asset funds that invest in equity, debt, gold, and international stocks-has taken root in India.

With renewed interest in foreign stocks and changes in taxation introduced in the 2024 budget, multi-asset funds can be an attractive proposition.

The Securities and Exchange Board of India (Sebi) classification rules require multi-asset funds to allot a minimum of 10% in equity, debt, and gold each while leaving it up to the fund manager to decide the maximum exposure.

Some but not all multi-asset funds also invest in international stocks.

Fund-of-funds (FoFs), which have baskets of domestic, overseas, and commodity exchange-traded funds (ETFs), also function a lot lik...