Best Multi Asset Allocation Funds

Fund Name
AUM
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3Y Returns
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Ratings
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Quant Multi Asset Fund Growth Direct Plan

Quant Multi Asset Fund Growth Direct Plan

Hybrid Multi Asset Allocation

₹1,455.83 Cr.

33.98%

4

Quant Multi Asset Fund IDCW Direct Plan Payout

Quant Multi Asset Fund IDCW Direct Plan Payout

Hybrid Multi Asset Allocation

₹1,455.83 Cr.

33.98%

4

Quant Multi Asset Fund IDCW Direct Plan Reinvestment

Quant Multi Asset Fund IDCW Direct Plan Reinvestment

Hybrid Multi Asset Allocation

₹1,455.83 Cr.

33.98%

4

ICICI Prudential Multi Asset Fund Direct Plan Growth

ICICI Prudential Multi Asset Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹32,831.03 Cr.

23.51%

5

ICICI Prudential Multi Asset Fund Direct Plan IDCW Payout

ICICI Prudential Multi Asset Fund Direct Plan IDCW Payout

Hybrid Multi Asset Allocation

₹32,831.03 Cr.

23.37%

5

ICICI Prudential Multi Asset Fund Direct Plan IDCW Reinvestment

ICICI Prudential Multi Asset Fund Direct Plan IDCW Reinvestment

Hybrid Multi Asset Allocation

₹32,831.03 Cr.

23.37%

5

Nippon India Multi Asset Fund Direct Plan IDCW Payout

Nippon India Multi Asset Fund Direct Plan IDCW Payout

Hybrid Multi Asset Allocation

₹2,543.08 Cr.

17.59%

0

Nippon India Multi Asset Fund Direct Plan IDCW Reinvestment

Nippon India Multi Asset Fund Direct Plan IDCW Reinvestment

Hybrid Multi Asset Allocation

₹2,543.08 Cr.

17.59%

0

Nippon India Multi Asset Fund Direct Plan Growth

Nippon India Multi Asset Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹2,543.08 Cr.

17.59%

0

TATA Multi Asset Opportnities Fund Direct Plan Dividend Reinvestment

TATA Multi Asset Opportnities Fund Direct Plan Dividend Reinvestment

Hybrid Multi Asset Allocation

₹2,380.74 Cr.

17.55%

0

TATA Multi Asset Opportunities Fund Direct Plan Growth

TATA Multi Asset Opportunities Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹2,380.74 Cr.

17.55%

0

TATA Multi Asset Opportunities Fund Direct Plan Dividend Payout Payout

TATA Multi Asset Opportunities Fund Direct Plan Dividend Payout Payout

Hybrid Multi Asset Allocation

₹2,380.74 Cr.

17.55%

0

UTI Multi Asset Fund Direct Plan Growth

UTI Multi Asset Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹1,152.38 Cr.

17.44%

1.5

UTI Multi Asset Fund Direct Plan IDCW Payout

UTI Multi Asset Fund Direct Plan IDCW Payout

Hybrid Multi Asset Allocation

₹1,152.38 Cr.

17.44%

1.5

UTI Multi Asset Fund Direct Plan IDCW Reinvestment

UTI Multi Asset Fund Direct Plan IDCW Reinvestment

Hybrid Multi Asset Allocation

₹1,152.38 Cr.

17.44%

1.5

HDFC Multi Asset Fund Growth Direct Plan

HDFC Multi Asset Fund Growth Direct Plan

Hybrid Multi Asset Allocation

₹2,405.89 Cr.

15.58%

4.5

HDFC Multi Asset Fund IDCW Direct Plan Payout

HDFC Multi Asset Fund IDCW Direct Plan Payout

Hybrid Multi Asset Allocation

₹2,405.89 Cr.

15.58%

4.5

HDFC Multi Asset Fund IDCW Direct Plan Reinvestment

HDFC Multi Asset Fund IDCW Direct Plan Reinvestment

Hybrid Multi Asset Allocation

₹2,405.89 Cr.

15.58%

4.5

SBI Multi Asset Allocation Fund Direct Plan Growth

SBI Multi Asset Allocation Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹3,626.55 Cr.

15.47%

4

SBI Multi Asset Allocation Fund Direct Plan Annual IDCW Reinvestment

SBI Multi Asset Allocation Fund Direct Plan Annual IDCW Reinvestment

Hybrid Multi Asset Allocation

₹3,626.55 Cr.

15.47%

4

SBI Multi Asset Allocation Fund Direct Plan Quarterly IDCW Payout

SBI Multi Asset Allocation Fund Direct Plan Quarterly IDCW Payout

Hybrid Multi Asset Allocation

₹3,626.55 Cr.

15.47%

4

SBI Multi Asset Allocation Fund Direct Plan Quarterly IDCW Reinvestment

SBI Multi Asset Allocation Fund Direct Plan Quarterly IDCW Reinvestment

Hybrid Multi Asset Allocation

₹3,626.55 Cr.

15.47%

4

SBI Multi Asset Allocation Fund Direct Plan Annual IDCW Payout

SBI Multi Asset Allocation Fund Direct Plan Annual IDCW Payout

Hybrid Multi Asset Allocation

₹3,626.55 Cr.

15.47%

4

SBI Multi Asset Allocation Fund Direct Plan Monthly IDCW Payout

SBI Multi Asset Allocation Fund Direct Plan Monthly IDCW Payout

Hybrid Multi Asset Allocation

₹3,626.55 Cr.

15.47%

4

SBI Multi Asset Allocation Fund Direct Plan Monthly IDCW Reinvestment

SBI Multi Asset Allocation Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Multi Asset Allocation

₹3,626.55 Cr.

15.47%

4

Axis Multi Asset Allocation Fund Direct Plan Growth

Axis Multi Asset Allocation Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹1,204.17 Cr.

10.9%

1.5

Axis Multi Asset Allocation Fund Direct Plan IDCW Payout

Axis Multi Asset Allocation Fund Direct Plan IDCW Payout

Hybrid Multi Asset Allocation

₹1,204.17 Cr.

10.89%

1.5

Axis Multi Asset Allocation Fund Direct Plan IDCW Reinvestment

Axis Multi Asset Allocation Fund Direct Plan IDCW Reinvestment

Hybrid Multi Asset Allocation

₹1,204.17 Cr.

10.89%

1.5

Motilal Oswal Multi Asset Fund Direct Plan Growth

Motilal Oswal Multi Asset Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹102.63 Cr.

8.46%

0

Aditya Birla Sun Life Multi Asset Allocation Fund Direct Growth

Aditya Birla Sun Life Multi Asset Allocation Fund Direct Growth

Hybrid Multi Asset Allocation

₹3,039.44 Cr.

0%

0

Aditya Birla Sun Life Multi Asset Allocation Fund Direct IDCW Payout

Aditya Birla Sun Life Multi Asset Allocation Fund Direct IDCW Payout

Hybrid Multi Asset Allocation

₹3,039.44 Cr.

0%

0

Whiteoak Capital Multi Asset Allocation Fund Direct Plan Growth

Whiteoak Capital Multi Asset Allocation Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹294.26 Cr.

0%

0

Aditya Birla Sun Life Multi Asset Allocation Fund Direct IDCW Reinvestment

Aditya Birla Sun Life Multi Asset Allocation Fund Direct IDCW Reinvestment

Hybrid Multi Asset Allocation

₹3,039.44 Cr.

0%

0

Edelweiss Multi Asset Allocation Fund Direct Plan Growth

Edelweiss Multi Asset Allocation Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹655.76 Cr.

0%

0

Edelweiss Multi Asset Allocation Fund Direct Plan IDCW Payout

Edelweiss Multi Asset Allocation Fund Direct Plan IDCW Payout

Hybrid Multi Asset Allocation

₹655.76 Cr.

0%

0

Edelweiss Multi Asset Allocation Fund Direct Plan IDCW Reinvestment

Edelweiss Multi Asset Allocation Fund Direct Plan IDCW Reinvestment

Hybrid Multi Asset Allocation

₹655.76 Cr.

0%

0

Baroda BNP Paribas Multi Asset Fund Direct Plan Growth

Baroda BNP Paribas Multi Asset Fund Direct Plan Growth

Hybrid Multi Asset Allocation

₹1,205.15 Cr.

0%

0

Baroda BNP Paribas Multi Asset Fund Direct Plan IDCW Payout

Baroda BNP Paribas Multi Asset Fund Direct Plan IDCW Payout

Hybrid Multi Asset Allocation

₹1,205.15 Cr.

0%

0

Baroda BNP Paribas Multi Asset Fund Direct Plan IDCW Reinvestment

Baroda BNP Paribas Multi Asset Fund Direct Plan IDCW Reinvestment

Hybrid Multi Asset Allocation

₹1,205.15 Cr.

0%

0

About Multi Asset Allocation Mutual Funds

Multi Asset Allocation Funds in India are mutual funds that invest in a mix of asset classes such as equity, debt, gold, etc. These are hybrid funds that are designed to offer investors a diversified investment option alongside the potential to generate moderate returns.

Multi Asset Allocation Funds, also known as balanced funds or asset allocation funds, are managed by professional fund managers who aim to create an optimal mix of assets based on market conditions. These funds typically invest in different asset classes of varying proportions based on the investors’ market outlook and risk profile.

How Do Multi Asset Allocation Funds Work?

Multi Asset Allocation Funds are a versatile investment option designed to diversify across various asset classes, including equity, debt and gold. These funds allocate a minimum of 10% of their assets to each asset category and often include other options like real estate to further enhance diversification.

These funds are favoured for their ability to provide a well-rounded investment portfolio and a strong history of delivering returns with controlled risk. Their attraction lies in their adaptability to different market conditions. Each asset class responds uniquely to economic shifts, and fund managers strategically allocate assets based on prevailing market conditions. For example, equity is geared towards potential wealth generation, gold serves as a hedge against inflation and economic uncertainty, while debt provides stability.

Investing in Multi Asset Allocation Funds allows investors to benefit from the expertise of fund managers who skillfully navigate diverse asset classes to optimise returns, making them a prudent choice for a balanced and potentially rewarding investment approach across varied market scenarios.

Features of Multi Asset Allocation Funds

  1. Diversification: Multi Asset Allocation Funds offer diversification across various asset classes, which helps to reduce the overall risk of the portfolio.
  2. Risk vs return: The funds aim to strike a balance between risk and return by investing in a mix of high-risk and low-risk assets as per market conditions. The fund manager’s expertise is crucial in determining the right mix of assets to achieve the desired risk-return profile.
  3. Flexibility: Multi Asset Allocation Funds provide flexibility in terms of asset allocation. The fund manager can adjust the allocation of assets depending on the market conditions and the investor’s risk appetite.
  4. Regular income: Some Multi Asset Allocation Funds offer a regular income option, which is suitable for investors who are looking for a steady stream of income.

Advantages of Investing in Multi Asset Allocation Funds

Multi Asset Allocation Funds offer several advantages for investors. Here are some of the key advantages:

  1. Diversification: Since Multi Asset Allocation Funds invest in a variety of asset classes, it can help reduce portfolio risk and volatility. Diversification can also help improve returns, as losses in one asset class can be offset by gains in another.
  2. Professional management: As mentioned earlier, Multi Asset Allocation Funds are managed by experienced investment professionals who have access to research, analysis, and market insights. This can help investors make more informed investment decisions and potentially achieve better returns.
  3. Convenience: Multi Asset Allocation Funds offer a convenient way for investors to gain exposure to multiple asset classes with a single investment. This can save investors time and effort, as they don’t need to research and manage multiple investments.
  4. Flexibility: Multi Asset Allocation Funds can be tailored to meet different investment objectives and risk profiles. They can also be adjusted over time to reflect changing market conditions and investor needs.
  5. Cost-effective: Investing in a Multi-Asset allocation fund can be cost-effective, as the fund can take advantage of economies of scale to reduce transaction costs and management fees. This can result in lower expenses for investors compared to investing in individual securities.

Risk Involved in Multi Asset Allocation Funds

Multi Asset Allocation Funds are designed to provide diversification, which can help reduce risk and increase returns. However, like any investment, there are risks involved in Multi Asset Allocation Funds as well. Here are some of the key risks:

  1. Market risk: Multi Asset Allocation Funds are subject to market risk, which means that their performance can be affected by changes in the overall economy, interest rates, and geopolitical events.
  2. Asset class risk: Since Multi Asset Allocation Funds invest in a variety of asset classes, they are subject to the risks associated with each asset class. For example, if the stock market performs poorly, the equity portion of the fund’s portfolio may suffer.
  3. Manager risk: Multi Asset Allocation Funds are managed by a portfolio manager, and their performance is heavily dependent on the manager’s investment decisions. Poor investment decisions can negatively impact the fund’s performance.
  4. Liquidity risk: Some asset classes, such as real estate and commodities, can be illiquid, which means they cannot be easily bought or sold. This can make it difficult for the fund to quickly adjust its portfolio in response to changing market conditions.

Investors should carefully consider these risks before investing in Multi Asset Allocation Funds. They should also ensure that the fund’s investment objectives and strategies align with their own investment goals and risk tolerance.

Factors To Consider Before Investing in Multi Asset Allocation Funds

Multi-asset funds offer a range of advantages to investors, fostering a sense of security in their investment choices. Nevertheless, there are crucial considerations to bear in mind before venturing into these funds.

  • Diverse Portfolio Allocations: It’s important to recognise that the allocation of assets within multi-asset funds can vary significantly among different mutual fund companies. Therefore, conducting thorough research is imperative to identify a fund that aligns with your specific risk and reward preferences.
  • Multiple Goals, Differing Time Horizons: When an individual employs a multi-asset allocation fund to pursue various financial objectives, particularly with varying timeframes, it can become challenging to meet these goals effectively. Multi-asset funds tend to perform optimally over extended periods, so they may not be the ideal choice for short-term objectives.
  • Broad Applicability: Multi-allocation funds can be a valuable addition to the mutual fund portfolio of a diverse range of investors, as highlighted earlier.

Who Should Invest in Multi Asset Allocation Funds?

Multi Asset Allocation Funds are suitable for investors who want to diversify their portfolios by investing in stocks, bonds, and other securities. Here are some examples of investors who may benefit from investing in these funds:

  1. Beginners: Multi Asset Allocation Funds are ideal for beginner investors who may not have the expertise or knowledge to create a diversified portfolio of their own. These funds provide exposure to different asset classes, which can help mitigate risk and provide stable returns.
  2. Investors with low-risk tolerance: Investors who are risk-averse or have a low-risk tolerance may benefit from Multi Asset Allocation Funds. These funds help minimise volatility and provide more stable returns than investing in individual stocks.
  3. Retirement investors: Multi Asset Allocation Funds can be a good option for retired investors with moderate risk tolerance, who want to generate income and growth from their investments while minimising risk. These funds can provide a consistent income stream while also providing long-term growth potential.
  4. Busy investors: Investors who do not have the time or resources to manage their own portfolios may benefit from Multi Asset Allocation Funds. These funds are managed by professional fund managers who make investment decisions on behalf of the investors.

Investors should carefully review the fund’s prospectus and consider their investment objectives, risk tolerance, and financial situation before investing in any fund.

Taxability of Multi Asset Allocation Funds

The taxation of multi-asset allocation funds is not strictly determined by the percentage of assets retained in debt or equity, as there is no requirement for these funds to maintain a certain allocation. As a result, the tax implications of these funds can vary depending on the specific scheme.

Although equity funds are generally favoured by tax-conscious investors, it is important to thoroughly review the relevant scheme-related documents to gain a clear understanding of how the fund manager intends to allocate equity within the portfolio.

If an investor holds the units of a Multi-Asset allocation fund for more than 3 years, any gains from the sale of those units will be considered long-term capital gains and will be subject to long-term capital gains tax. The long-term capital gains tax rate for Multi Asset Allocation Funds is 10% (plus applicable surcharges) without indexation or 20% (plus applicable surcharges) with indexation, whichever is lower.

Dividend taxation – Dividends earned on multi-asset allocation funds are added to the investor’s taxable income and taxed at the rate as per the income tax slab. There is also a 10% TDS on a dividend amount exceeding ₹5,000 in a financial year.

How To Invest in Multi Asset Allocation Funds?

Investing in Multi Asset Allocation Funds via your Angel One account is a hassle-free process. Simply follow these guidelines:

Step 1: Commence by logging in to your Angel One account using your registered mobile number. Validate the OTP and input your MPIN.

Important: If you don’t have a Demat account with Angel One, it’s swift and straightforward to open one. This entails fulfilling the KYC requirements and providing the requisite documentation.

Step 2: Next, select the most suitable fund based on your financial requirements and risk appetite. You can evaluate each fund within the mutual fund section of the Angel One app. Consider these aspects during this phase:

  • Identify the specific fund you intend to invest in.
  • Examine the fund’s historical performance, tax implications, constituent sectors, and underlying stocks.
  • Utilise the provided calculator to estimate potential returns.
  • Assess the fund’s risk level and check if it aligns with your risk tolerance.
  • Take into account the fund’s ratings, typically on a scale of 1 to 5, awarded by reputable rating agencies.
  • Gauge the fund’s expense ratio to understand the associated investment costs.

Step 3: Once you’ve finalised your fund selection(s), navigate to the Mutual Funds section, and locate your chosen fund(s). Given that this could be a long-term investment, exercise prudence during this stage. Consider these factors:

  • Decide whether you prefer a lump-sum investment or opt for a monthly SIP (Systematic Investment Plan).
  • Specify your desired investment amount and choose your preferred payment method, with UPI being the recommended choice, though net banking is also an option.
  • For SIP investments, you can establish a mandate for effortless future contributions after placing your order.

Top 5 Multi Asset Allocation Funds to Invest in

Fund Name AUM

(in ₹crore)

Minimum Investment (in ₹) 3-yr Returns (%) 5-yr Return (%)
Quant Multi Asset Fund Reinvestment of Income Distribution cum capital withdrawal Option Direct Plan 683.06 5,000 28.42 20.77
Quant Multi Asset Fund Payout of Income Distribution cum capital withdrawal Option Direct Plan 683.07 5,000 26.81 19.76
Quant Multi Asset Fund Growth 749.48 5,000 26.71 19.70
ICICI Prudential Multi Asset Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl 17,044.38 5,000 21.78 12.96
HDFC Dynamic PE Ratio Fund of Funds – Direct Plan-Growth 31.16 5,000 17.15 11.16

The above-mentioned top funds are for informational purposes only and are not recommendations. The funds are based on a 5-year return, which is subject to change frequently. Check out real-time data on Angel One.

Quant Multi Asset Fund Reinvestment of Income Distribution cum capital withdrawal Option Direct Plan

The Quant Multi Asset Fund (RIDCW) offers a hybrid investment opportunity that has been managed by a team of experienced professionals since its inception on January 1st, 2013. With Ankit A. Pande, Vasav Sahgal, Varun Pattani, Sanjeev Sharma, and Sandeep Tandon at the helm, this fund provides investors with the advantage of diversification across multiple asset classes. The current AUM of the fund is ₹683 cr and the expense ratio is 0.56.

Quant Multi Asset Fund Payout of Income Distribution cum capital withdrawal Option Direct Plan

Launched in 2001, the scheme aims to achieve capital appreciation and offer prospects for long-term growth by investing in various instruments from three asset categories: Equities, Debt, and Commodities. The current AUM of the fund is ₹683.07 cr and the expense ratio is 2.31.

Quant Multi Asset Fund Growth

The Quant Multi Asset Fund is a type of Open-ended Multi Asset Allocation Hybrid scheme that is offered by the Quant Mutual Fund House. Its inception date was on March 21, 2001. The current AUM of the fund is ₹749.48 cr and the expense ratio is 2.31.

ICICI Prudential Multi Asset Fund Direct Plan Reinvestment IDCW

This is a hybrid fund called ICICI Prudential Multi Asset Fund Direct Plan Reinvestment IDCW. It was launched on January 1, 2013, and is currently being managed by a team of six individuals including Sharmila D’mello, Sankaran Naren, Ihab Dalwai, Anuj Tagra, Sri Sharma, and Gaurav Chikane. The current AUM of the fund is Rs, 17,044 cr and the expense ratio is 1.15.

HDFC Dynamic PE Ratio Fund of Funds – Direct Plan-Growth

HDFC Mutual Fund manages a hybrid mutual fund scheme called HDFC Dynamic PE Ratio FoF Direct-Growth, which is currently under the management of Mr. Anil Bamboli and Mr. Srinivasan Ramamurthy. The current AUM of the fund is ₹31.16 cr and the expense ratio is 0.16.

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Multi Asset Allocation FAQs

What are Multi Asset Allocation Funds?

Multi Asset Allocation Funds are mutual funds that invest in a diversified portfolio of different asset classes, such as equities, bonds, and other securities. The fund manager actively manages the portfolio, adjusting the allocation of assets based on market conditions and the fund's investment objectives.

What are the benefits of investing in Multi Asset Allocation Funds?

Multi Asset Allocation Funds offer several benefits, including diversification across multiple asset classes, professional management, and the potential for higher returns with lower risk.

How do Multi Asset Allocation Funds differ from balanced funds?

While both Multi Asset Allocation Funds and balanced funds invest in a mix of equities and fixed-income securities, the former also invest in other asset classes such as real estate, commodities, and alternative investments.

What are the risks associated with investing in Multi Asset Allocation Funds?

Multi Asset Allocation Funds are subject to market risk, which means the value of the fund can fluctuate based on market conditions. Additionally, the fund's performance may be impacted by interest rate risk, credit risk, and currency risk.

How should I evaluate Multi Asset Allocation Funds before investing?

Before investing in a Multi-Asset allocation fund, investors should consider the fund's investment objectives, asset allocation strategy, historical performance, fees, and risks. Consulting a financial advisor can also be helpful in evaluating these funds.