Is any one can adjust the asset allocation in mutual funds to reflect market trends ?

Any prudent fund manager can adjust the asset allocation to reflect market trends. He can choose to invest a higher or lower proportion of the fund in equity and debt instruments than what was disclosed in the offer documents. You can do it on a temporary basis for defensive reasons, i.e. To protect the NAV. The fund managers have some flexibility to alter the asset allocation in accordance with investors' interests. If the mutual fund wishes to alter the asset allocation permanently, they must inform unitholders. They will also give them the option of exiting the scheme at the prevailing NAV with no load.