Top 3 Multi-Asset Allocation Funds: How Rs 1 Lakh Turned into Big Gains

Multi-Asset Allocation Mutual Funds are hybrid schemes that strategically invest across diverse asset classes, including equity, debt, cash, and commodities. These funds aim to provide investors with long-term capital growth and stable returns by leveraging the best opportunities across various instruments. The primary focus is on equity investments, allowing investors to benefit from market opportunities while balancing risk with other asset classes.

Ideal for those with a moderate risk appetite, Multi-Asset Allocation Funds offer a balanced growth path over the long term. Let’s explore the top three performing multi-asset allocation funds that have outshined their peers, turning a Rs 1 lakh investment into impressive returns.

1. Quant Multi Asset Fund

Quant Multi Asset Fund has carved a niche with a unique investment strategy that allocates 42.79% to domestic equities, comprising 22.95% in large-cap stocks, 4% in mid-cap stocks, and 0.25% in small-cap stocks. Additionally, the fund holds 10% in debt, entirely allocated to government securities, adding a layer of stability.

• NAV (August 29): Rs 133.51
• Fund Size: Rs 2,605.27 crore
• 3-Year Annualized Return: 23.75% (category average: 16.33%)
• Growth of Rs 1 Lakh: Rs 1 lakh invested three years ago would now be worth Rs 1.90 lakh.

This fund’s strong equity positioning and strategic debt allocation have enabled it to deliver returns that significantly outperform the average for this category.

2. ICICI Prudential Multi-Asset Fund

ICICI Prudential Multi-Asset Fund is a heavyweight in the multi-asset space, with a robust 66.3% allocation to domestic equities, including 46.12% in large caps, 4.86% in mid-caps, and 2.58% in small caps. The fund’s debt exposure stands at 14.33%, distributed between government securities (7.2%) and low-risk securities (6.53%), balancing growth with risk mitigation.

• NAV (August 28): Rs 706.41
• Fund Size: Rs 46,488.14 crore (nearly 50% of the category’s invested AUM)
• 3-Year Annualized Return: 23.28%
• Growth of Rs 1 Lakh: A Rs 1 lakh investment three years ago would have grown to Rs 1.88 lakh.

With a sizable allocation to equities and a substantial fund size, this fund continues to leverage market opportunities, making it a reliable choice for moderate risk-takers.

3. UTI Multi Asset Allocation Fund

UTI Multi Asset Allocation Fund combines the strengths of equity and debt with a 66.34% allocation to equities, including 42% in large caps, 11.87% in mid-caps, and 3.03% in small caps. The fund also maintains a 17.5% allocation to debt, primarily government securities, ensuring balanced growth with limited volatility.

• NAV (August 29): Rs 72.75
• Fund Size: Rs 2,912.96 crore
• 3-Year Annualized Return: 19.10%
• Growth of Rs 1 Lakh: A Rs 1 lakh investment three years ago would now be worth Rs 1.69 lakh.

This fund stands out for its diversified approach, offering steady returns with a prudent mix of large and mid-cap equities and solid government-backed debt holdings.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.