Who Should Invest in Multi-Asset Allocation Mutual Funds?
Investing in a Multi-Asset Allocation Mutual Fund is ideal for investors who do not want a higher risk and want to earn stable returns by diversifying their investment in multiple financial instruments. Also, the fund is excellent for long-term holding or a long investment horizon, i.e., above five years at least. View More
Features of Multi-Asset Allocation Mutual Funds
Some features of Multi Asset Allocation Funds include:
Portfolio Diversification: As per SEBI guidelines, Multi-Asset Allocation Funds should invest a minimum of 10% in three or more asset classes. It ensures that the investor gets exposure to different assets by investing in a single scheme, and there are no other regulations to define how this diversification can be done. Thus, investors need to go through the scheme-related documents carefully and plan their investment based on the investment goals declared by the fund. View More
Taxability of Multi-Asset Allocation Funds
Multi-Asset Allocation Funds follow different equity exposure, so the tax incurred on the returns generated by these funds varies. As per the amendments to the 2020 Budget, investors are taxed depending on the type of scheme that they have invested in. Thus, if the equity exposure is more than 65%, the scheme is taxed like any other equity-oriented fund. Meanwhile, if it is lower, it will incur taxes similar to a debt fund. View More
Risk Involved in Multi-Asset Allocation Funds
Since Multi-Asset Allocation Funds can range from equity-oriented to debt-oriented, their risk can also vary. In either case, Multi-Asset Funds have a lower risk appetite since the funds are not concentrated on any particular asset or instrument. This mitigates the risk associated, and the fund can even sustain and give wholesome returns despite the market, volatility, and concentration risks. View More
Advantages of Multi-Asset Allocation Funds
Some of the major benefits of investing in Multi-Asset Allocation Funds include: View More
Who Are These Funds Suited For?
Multi-asset allocation mutual funds are ideal for investors who want to diversify their portfolio and do not want to assume a higher level of risk by investing their funds in a particular asset class. The diversified portfolio of a multi-allocation fund offers capital gains in the long run while minimizing associated risk. View More
Popular Multi Asset Allocation Mutual Funds
- Fund Name
- Min SIP Investment Amt
- AUM (Cr.)
- 3Y Return
Quant Multi Asset Fund – Direct Growth is an Multi Asset Allocation scheme that was launched on 07-01-13 and is currently under the management of our experienced fund manager Vasav Sahgal. With an impressive AUM of ₹1,051 Crores, this scheme's latest NAV is ₹110.0151 as of 08-12-23.
Quant Multi Asset Fund – Direct Growth scheme has delivered a return performance of 17.7% in the last 1 year, 29% in the last 3 years, and an 14.7% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Multi Asset Allocation funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹1,051
- 3Y Return
- 17.7%
ICICI Pru Multi-Asset Fund – Direct Growth is an Multi Asset Allocation scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Sankaran Naren. With an impressive AUM of ₹24,931 Crores, this scheme's latest NAV is ₹633.7543 as of 07-12-23.
ICICI Pru Multi-Asset Fund – Direct Growth scheme has delivered a return performance of 22.1% in the last 1 year, 25.7% in the last 3 years, and an 16.7% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Multi Asset Allocation funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹24,931
- 3Y Return
- 22.1%
HDFC Multi-Asset Fund – Direct Growth is an Multi Asset Allocation scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Srinivasan Ramamurthy. With an impressive AUM of ₹2,000 Crores, this scheme's latest NAV is ₹63.175 as of 08-12-23.
HDFC Multi-Asset Fund – Direct Growth scheme has delivered a return performance of 15.6% in the last 1 year, 16% in the last 3 years, and an 11.5% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Multi Asset Allocation funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹2,000
- 3Y Return
- 15.6%
Tata Multi Asset Opportunities Fund – Dir Growth is an Multi Asset Allocation scheme that was launched on 04-03-20 and is currently under the management of our experienced fund manager RahulSingh. With an impressive AUM of ₹1,928 Crores, this scheme's latest NAV is ₹20.2245 as of 07-12-23.
Tata Multi Asset Opportunities Fund – Dir Growth scheme has delivered a return performance of 15.8% in the last 1 year, 17.7% in the last 3 years, and an 20.6% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Multi Asset Allocation funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹1,928
- 3Y Return
- 15.8%
HDFC Dynamic PE Ratio Fund of Funds – Dir Growth is an FoFs Domestic scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Srinivasan Ramamurthy. With an impressive AUM of ₹38 Crores, this scheme's latest NAV is ₹37.3258 as of 08-12-23.
HDFC Dynamic PE Ratio Fund of Funds – Dir Growth scheme has delivered a return performance of 20.5% in the last 1 year, 17.7% in the last 3 years, and an 11.9% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹38
- 3Y Return
- 20.5%
SBI Multi Asset Allocation Fund – Direct Growth is an Multi Asset Allocation scheme that was launched on 19-03-13 and is currently under the management of our experienced fund manager Dinesh Balachandran. With an impressive AUM of ₹2,224 Crores, this scheme's latest NAV is ₹51.9486 as of 08-12-23.
SBI Multi Asset Allocation Fund – Direct Growth scheme has delivered a return performance of 20.4% in the last 1 year, 14.7% in the last 3 years, and an 11.9% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Multi Asset Allocation funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹2,224
- 3Y Return
- 20.4%
UTI-Multi Asset Allocation Fund – Direct Growth is an Multi Asset Allocation scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Sharwan Kumar Goyal. With an impressive AUM of ₹891 Crores, this scheme's latest NAV is ₹62.5446 as of 08-12-23.
UTI-Multi Asset Allocation Fund – Direct Growth scheme has delivered a return performance of 25.3% in the last 1 year, 15.1% in the last 3 years, and an 9.3% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Multi Asset Allocation funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹891
- 3Y Return
- 25.3%
Quantum Multi Asset Fund of Funds – Direct Growth is an FoFs Domestic scheme that was launched on 11-07-12 and is currently under the management of our experienced fund manager Chirag Mehta. With an impressive AUM of ₹54 Crores, this scheme's latest NAV is ₹28.1313 as of 07-12-23.
Quantum Multi Asset Fund of Funds – Direct Growth scheme has delivered a return performance of 11.1% in the last 1 year, 9.2% in the last 3 years, and an 9.5% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹54
- 3Y Return
- 11.1%
Frequently Asked Questions
How long should I stay invested in a Multi-Asset Allocation mutual fund?
Multi-Asset Allocation Funds keep changing their asset allocation per specific rules and market conditions to give optimal returns to their investors. Due to this, it is ideal for holding onto a Multi-Asset Allocation mutual fund for at least 5 years, with the longer horizon improving the chances of generating a higher return.
What kind of returns can I expect from a Multi-Asset Allocation Fund?
On average, Multi-Asset Allocation Funds have given investors an average return of 10.63% in the last 5 years and 8.84% annualized annual returns in the previous 10 years.
Who should invest in Multi-Asset Allocation Funds?
Investors looking for alternatives to a fixed income or those who want to gain marginally better returns with a lower risk appetite can invest in multi-asset allocation funds. Since the fund doesn’t invest in any particular asset class or instrument, it is ideal for beginners and those who do not have much financial knowledge.
What are the benchmark uses for multi-asset funds?
There are no fixed expense ratios that mutual fund houses must abide by when investing in multi-asset allocation funds, and fund managers can fix an allocation for each index per their investment goal.
Where do Multi-Asset Allocation Funds invest in?
Multi-Asset Funds do not invest in any particular industry, asset class, or segment. The allocation percentage for each fund is determined by the fund’s objective and the strategy adopted by the fund manager.
How does Multi-Asset Fund reduce volatility?
Since Multi-Asset Allocation Funds invest in different asset classes, any volatility or hit to a particular asset class is not felt by the overall fund. This helps the overall returns to be consistent despite market fluctuations and allows investors to get relatively reduced volatility.
What is a high expense ratio for a multi-asset fund?
A fund with an expense ratio of greater than 1% – 2% is considered high for multi-asset allocation funds, and investors should compare the expense ratio when planning their investments.
How to invest in multi-asset allocation funds?
Investing in Multi-Asset Allocation Funds is very easy using the 5paisa app. Here are the steps you need to follow – Download the 5paisa app or log in using the website, head to the mutual fund section and choose ‘Multi-Asset Allocation Funds.’ Once selected, you can get a list of funds to invest in. You can choose SIP or Lumpsum and complete your KYC registration to complete your investment.