Multi Asset Allocation Mutual Funds

Multi-Asset Allocation Mutual Funds are balanced funds that invest at least 10% of their portfolio in three or more asset classes as per the SEBI guidelines. The fund can invest in a diverse range of assets and securities in the equity and debt market, including gold, real estate, commodities, bonds, stocks, gold, international equities, etc. This wide range of investment options provides investors the benefit of exposure to a diversified portfolio and a lower risk from volatility in any asset class. View More

The distribution and allocation of assets in a Multi-Asset Fund can vary, and it is up to the fund manager how the allocation and investment are to be planned. As per SEBI guidelines, the Multi-Asset Allocation Fund has to have at least 10% of its portfolio in three or more asset classes, while there are no restrictions on which assets or allocations the fund manager has to follow. These funds follow the principles of ‘Do not put all your eggs in one basket,’ allowing investors to enter multiple asset classes and get performance benefits at different times.

Multi-Asset Funds allow the fund managers to play an instrumental role since they get higher flexibility to allocate funds as per market conditions and their analysis. For instance, if the stock market is volatile, the fund manager can give a higher allocation towards debt, gold, or safer instruments to ensure no adverse effects on the fund’s returns. Meanwhile, when the market is experiencing a bull run, the fund manager can increase exposure to equity-linked schemes and make the best of both situations. 

Best Multi Asset Allocation Mutual Funds

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Who Should Invest in Multi-Asset Allocation Mutual Funds?

Features of Multi-Asset Allocation Mutual Funds

Taxability of Multi-Asset Allocation Funds

Risk Involved in Multi-Asset Allocation Funds

Advantages of Multi-Asset Allocation Funds

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Popular Multi Asset Allocation Mutual Funds

  • Fund Name
  • Min SIP Investment Amt
  • AUM (Cr.)
  • 3Y Return

Quant Multi Asset Fund 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 ₹749 Crores, this scheme's latest NAV is ₹91.1891 as of 01-06-23.

Quant Multi Asset Fund scheme has delivered a return performance of 14.6% in the last 1 year, 38.6% in the last 3 years, and an 13.5% 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.)
  • ₹749
  • 3Y Return
  • 14.6%

ICICI Pru Multi-Asset Fund 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 ₹17,811 Crores, this scheme's latest NAV is ₹541.5871 as of 01-06-23.

ICICI Pru Multi-Asset Fund scheme has delivered a return performance of 16.4% in the last 1 year, 27.6% in the last 3 years, and an 15.9% 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.)
  • ₹17,811
  • 3Y Return
  • 16.4%

HDFC Multi-Asset Fund 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 ₹1,735 Crores, this scheme's latest NAV is ₹56.4 as of 01-06-23.

HDFC Multi-Asset Fund scheme has delivered a return performance of 12.6% in the last 1 year, 20.5% in the last 3 years, and an 11% 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.)
  • ₹1,735
  • 3Y Return
  • 12.6%

Tata Multi Asset Opportunities Fund 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 ₹1,702 Crores, this scheme's latest NAV is ₹17.8862 as of 02-06-23.

Tata Multi Asset Opportunities Fund scheme has delivered a return performance of 13.8% in the last 1 year, 21.8% in the last 3 years, and an 19.7% 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.)
  • ₹1,702
  • 3Y Return
  • 13.8%

HDFC Dynamic PE Ratio Fund 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 ₹32 Crores, this scheme's latest NAV is ₹32.6875 as of 02-06-23.

HDFC Dynamic PE Ratio Fund scheme has delivered a return performance of 17.4% in the last 1 year, 21.2% in the last 3 years, and an 11.2% 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.)
  • ₹32
  • 3Y Return
  • 17.4%

SBI Multi Asset Allocation Fund 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 ₹701 Crores, this scheme's latest NAV is ₹44.92 as of 02-06-23.

SBI Multi Asset Allocation Fund scheme has delivered a return performance of 14.1% in the last 1 year, 14.1% in the last 3 years, and an 11% 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.)
  • ₹701
  • 3Y Return
  • 14.1%

UTI-Multi Asset Fund 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 ₹52.9598 as of 02-06-23.

UTI-Multi Asset Fund scheme has delivered a return performance of 17.4% in the last 1 year, 15.7% in the last 3 years, and an 8.1% 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
  • 17.4%

Quantum Multi Asset Fund 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 ₹51 Crores, this scheme's latest NAV is ₹26.1301 as of 02-06-23.

Quantum Multi Asset Fund scheme has delivered a return performance of 10.4% in the last 1 year, 10.9% in the last 3 years, and an 9.2% 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.)
  • ₹51
  • 3Y Return
  • 10.4%

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. 

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