Multi asset funds have become increasingly popular among investors who are looking for a balanced approach to their investments. These funds are designed to reduce risk by investing in multiple asset classes such as equities, bonds, and commodities like gold and silver. In this article, we’ll explore the top multi asset funds in India that have delivered impressive returns over the past five years and discuss the benefits they offer to investors.
Top Multi Asset Funds with High Returns
Despite being hybrid in nature, multi asset funds have proven that they can deliver significant returns. Here’s a look at six top-performing multi asset allocation funds that have outperformed the market in the last five years:
1. Quant Multi Asset Fund
- Last 5-Year Return: 31.45% (CAGR)
- Current Value of Rs 1 Lakh: Rs 3,92,467
- AUM: Rs 2,972.94 crore
- Benchmark: BSE 200 TRI, MCX I-COMDEX Composite Index, CRISIL Short-Term Bond Index
2. ICICI Prudential Multi Asset Fund
- Last 5-Year Return: 22.98% (CAGR)
- Current Value of Rs 1 Lakh: Rs 2,81,302
- AUM: Rs 50,185.82 crore
- Benchmark: NIFTY 200 TRI, NIFTY Composite Debt Index, Domestic Price of Gold, MCX I-COMDEX Composite Index, Domestic Price of Silver
3. UTI Multi Asset Allocation Fund
- Last 5-Year Return: 17.95% (CAGR)
- Current Value of Rs 1 Lakh: Rs 2,28,291
- AUM: Rs 3,955.97 crore
- Benchmark: BSE 200 TRI, CRISIL Composite Bond Index, Domestic Price of Gold
4. HDFC Multi Asset Fund
- Last 5-Year Return: 17.86% (CAGR)
- Current Value of Rs 1 Lakh: Rs 2,27,422
- AUM: Rs 3,706.44 crore
- Benchmark: NIFTY 50 TRI, NIFTY Composite Debt Index, Domestic Price of Gold
5. SBI Multi Asset Allocation Fund
- Last 5-Year Return: 15.98% (CAGR)
- Current Value of Rs 1 Lakh: Rs 2,09,853
- AUM: Rs 6,220.73 crore
- Benchmark: BSE 500 TRI, CRISIL Composite Bond Index, Domestic Price of Gold, Domestic Price of Silver
6. Axis Multi Asset Allocation Fund
- Last 5-Year Return: 15.71% (CAGR)
- Current Value of Rs 1 Lakh: Rs 2,07,422
- AUM: Rs 1,320.37 crore
- Benchmark: NIFTY 500 TRI, NIFTY Composite Debt Index, Domestic Price of Gold, Domestic Price of Silver
Understanding Multi Asset Funds
Multi asset funds are mutual fund schemes that diversify investments across various asset classes. These can include equities, debt instruments, and commodities such as gold and silver. Some funds also invest in alternative assets like real estate investment trusts (REITs), infrastructure investment trusts (InvITs), and even international stocks. The key objective of these funds is to manage risk while providing consistent returns, regardless of market conditions.
Why Invest in Multi Asset Funds?
- Balanced Portfolio: Multi asset funds provide investors with a diversified portfolio that reduces the need to invest in separate funds for each asset class. This ensures a balanced approach, making it easier for investors to manage their investments.
- Risk Management: These funds are designed to manage risk effectively by rebalancing their portfolios according to market conditions. This dynamic approach helps in minimizing the impact of market volatility, providing a cushion against potential losses.
- Diversification Benefits: By investing in multiple asset classes, multi asset funds offer the advantage of diversification, reducing the reliance on a single asset class. This diversification helps in spreading risk and increasing the potential for returns.
Are Multi Asset Funds Right for You?
Multi asset funds are particularly suited for investors who seek a balanced investment approach with exposure to multiple asset classes. While they offer the potential for high returns, it’s important to remember that they also carry risks, especially due to their exposure to equity markets. Most multi asset funds are categorized as high or very high risk, so it’s crucial to assess your risk tolerance before investing.
These funds can be an excellent choice for those looking to diversify their portfolios without the hassle of managing multiple investments. However, investors should always keep in mind that past performance does not guarantee future results, and it’s essential to make informed decisions based on current market conditions and personal financial goals.
