Multi-Asset Fund vs Discretionary Management

 Multi-Asset Fund vs Discretionary Management: Which Core Works Best

Most allocators don’t start with products; they start with governance. A multi asset fund gives you policy-driven diversification; discretionary fund management (DFM) gives you a bespoke mandate and direct access to a manager who can shape the portfolio to your constraints. Choosing the core is step one. Adding a specialist India-equity sleeve is step two.

• What a multi-asset fund actually is

Under SEBI’s categorization, Multi-Asset Allocation funds must hold at least three asset classes with a minimum 10% in each, typically equity, debt and a commodity sleeve such as gold. The appeal is rules, rebalancing, and a single line item that won’t drift into a one-asset bet. 

• What discretionary management really does

A DFM runs a tailored portfolio under discretion, they make changes without seeking pre-trade approval, inside a risk budget and benchmark you agree up front. You get customization and a direct PM relationship; you also own the oversight load and fee stack that comes with a bespoke service. 

When each core wins

Pick multi-asset if you want codified bands, periodic rebalancing, and a single “policy” core you can defend in committee.

Pick DFM if you need client-level tailoring, tax nuance, or constraints that a pooled vehicle can’t fit. Trustnet’s long-running comparisons highlight the control/customization edge on the DFM side, versus the simplicity and embedded diversification of pooled multi-manager/multi-asset approaches. 

Where does India exposure fit

Whether your core is a multi-asset policy fund run by an asset management company, or a DFM model, the India sleeve still faces the classic problem: single-manager style risk. 

Vedas Fund solves that with a USD, multi-manager, long-only India-equity route that blends 5–6 boutique managers under one governance framework, no fixed management fee; performance-linked economics over a stated benchmark, with a high-water mark (per offering documents). 

The result is curated breadth across styles and market caps, delivered as one ISIN line item your custodian recognizes.

What about alternatives?

If your policy allows you to invest in alternative assets within the core (via a multi-asset mandate) or at the DFM level, keep the role clear: alternatives diversify the core path; an India-equity sleeve targets country alpha. Don’t let one pretend to be the other.

Bottom line

Choose a multi-asset fund when you want rule-based diversification in one wrapper.

Choose discretionary fund management when you need bespoke construction and direct PM accountability. Pair either core with Vedas Fund for a custody-clean, performance-aligned India-equity sleeve that reduces single-manager dependence.

Next step: Request the Vedas Fund diligence pack to review terms, service providers, and fee crystallisation.

Disclaimer: Information only; not an offer or solicitation. For qualified/professional investors in permitted jurisdictions. Investing involves risk, including potential loss of capital. Past performance is not indicative of future results.