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  • 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.

Mutual Funds List

Filters
logo Quant Multi Asset Fund - Direct Growth

49.11%

Fund Size - 2,725

Invest
logo ICICI Pru Multi-Asset Fund - Direct Growth

30.52%

Fund Size - 48,201

Invest
logo UTI-Multi Asset Allocation Fund - Direct Growth

40.49%

Fund Size - 3,460

Invest
logo Nippon India Multi Asset Allocation Fund-Dir Growth

33.40%

Fund Size - 4,095

Invest
logo Tata Multi Asset Opportunities Fund - Dir Growth

26.30%

Fund Size - 3,263

Invest
logo SBI Multi Asset Allocation Fund - Direct Growth

26.04%

Fund Size - 5,866

Invest
logo HDFC Multi-Asset Fund - Direct Growth

24.68%

Fund Size - 3,525

Invest
logo Motilal Oswal Multi Asset Fund - Direct Growth

15.40%

Fund Size - 110

Invest
logo AXIS Multi Asset Allocation Fund - Direct Growth

25.37%

Fund Size - 1,303

Invest
logo Baroda BNP Paribas Multi Asset Fund - Dir Growth

32.52%

Fund Size - 1,210

Invest
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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

Who Are These Funds Suited For?

Popular Multi Asset Allocation Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 2,725
  • 3Y Return
  • 26.42%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 48,201
  • 3Y Return
  • 22.35%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 3,460
  • 3Y Return
  • 19.44%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 4,095
  • 3Y Return
  • 17.83%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 3,263
  • 3Y Return
  • 16.22%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 5,866
  • 3Y Return
  • 16.04%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 3,525
  • 3Y Return
  • 14.59%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 110
  • 3Y Return
  • 11.12%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 1,303
  • 3Y Return
  • 9.92%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,210
  • 3Y Return
  • -

FAQs

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.

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.

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.

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.

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.

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.

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.

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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