Understanding MultiAsset Allocation Funds
Multi-asset allocation funds invest in multiple asset classes and provide true diversification. According to regulations, the fund has to invest 10% of its assets in at least three asset classes. They are suitable for investors who don't want high exposure to a single asset class.
The main objective of these funds is to provide meaningful diversification.
Provide asset allocation and better risk-adjusted returns.
Suitable for a 3+ year investment horizon.
Top schemes of MultiAsset Allocation Mutual Funds
| Fund Name | Returns | Actions | ||
|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | ||
Returns calculator
Total Invested : ₹ 6,00,000
Profit : ₹ 56,200,000
Current value : ₹ 1,16,20,000
Frequently Asked Questions
Which is the best multi-asset fund?
You should evaluate fund performance, risk-adjusted returns, track record, exit load, and taxation to select a fund that aligns with your goals.
What is the average return of multi-asset funds?
The average return of multi-asset funds is as follows:
1-year: 7.76%
3-year: 12.5%
5-year: 21.87%
10-year: 11.75%
Since inception: 10.45%
Source: Advisorkhoj, as of April 2, 2025
What are the benefits of a multi-asset fund?
Apart from providing diversification across asset classes, here are the benefits of a multi-asset fund:
Professional management
Balanced risk and returns
Risk management
Are multi-asset funds safe?
Multi-asset funds are considered less risky than funds with investments in a single asset class. Others can optimise the returns if one asset class doesn't perform well.
What is the difference between an equity fund and a multi-asset fund?
Equity funds only invest in a single asset class or stocks, while multi-asset funds invest in three asset classes simultaneously.
What is the difference between a multi-asset allocation fund and a hybrid fund?
A multi-asset allocation fund is a hybrid fund. It invests in three asset classes to provide diversification. Other hybrid funds are dynamic asset allocation, aggressive hybrid, conservative hybrid, equity savings, balanced, and arbitrage.
Are multi-asset funds taxable?
Yes, multi-asset funds are taxable. Taxation depends on the equity percentage in the portfolio.
If the Fund holds 65% or More in Equity → Treated as an Equity Fund
If the Fund Holds Less than 65% in Equity → Treated as a Debt Fund
Short-Term Capital Gains (STCG) (Holding ≤ 1 year): 20%
Long-Term Capital Gains (LTCG) (Holding > 1 year): 12.5% (above ₹1.25 lakh exemption)
Why invest in a multi-asset fund?
Investing in a multi-asset allocation fund can be a smart choice for investors looking for diversification, stability, and growth in one fund.
Who should invest in a multi-asset fund?
Multi-asset allocation funds are ideal for investors looking for a balanced, well-diversified portfolio with moderate risk. These funds invest in equity, debt, gold, and other asset classes, making them suitable for different types of investors.