Best Multi Asset Allocation Fund – Multi Asset Allocation Fund

The below table shows a list Of the best asset Allocation Funds Based on AUM, NAV and minimum SIP.

Introduction to Multi-Asset Allocation Funds

ICICI Pru Multi-Asset Fund

ICICI Prudential Multi-Asset Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

ICICI Prudential Multi Asset Fund Direct-Growth as a credit risk fund, manages assets valued at ₹44648.14 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 23.38%. This fund has an exit load of 1% and an expense ratio of 0.72%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  49.03%, Debt at 13.81% and Other at 25.53%.

Kotak Multi Asset Allocation Fund

Kotak Multi Asset Allocation Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 1 year, having been launched on 31/08/2023. 

Kotak Multi Asset Allocation Fund Direct-Growth as a credit risk fund, manages assets valued at ₹6952.13 crore. This fund has an exit load of 1% and an expense ratio of 0.3%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  53.94%, Debt at 10.22% and Other at 18.09%.

SBI Multi Asset Allocation Fund

SBI Multi Asset Allocation Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

SBI Multi Asset Allocation Fund Direct-Growth as a credit risk fund, manages assets valued at ₹5865.80 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 16.46%. This fund has an exit load of 1% and an expense ratio of 0.53%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  38.15%, Debt at 36.44% and Other at 9.2%.

Nippon India Multi Asset Allocation Fund

Nippon India Multi Asset Allocation Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 4 years and 1 month, having been launched on 07/08/2020.

Nippon India Multi Asset Allocation Fund Direct-Growth as a credit risk fund, manages assets valued at ₹4095.21 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 18.09%. This fund has an exit load of 1% and an expense ratio of 0.28%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  67.69%, Debt at 16.12% and Other at 0.07%.

HDFC Multi-Asset Fund

HDFC Multi Asset Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

HDFC Multi Asset Fund Direct-Growth as a credit risk fund, manages assets valued at ₹3524.55 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 18.41%. This fund has an exit load of 1% and an expense ratio of 0.77%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  46.75%, Debt at 13.42% and Other at 29.27%.

Aditya Birla SL Multi Asset Allocation Fund

Aditya Birla Sun Life Multi Asset Allocation Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 1 year  8 months, having been launched on 11/01/2023.

Aditya Birla Sun Life Multi Asset Allocation Fund Direct-Growth as a credit risk fund, manages assets valued at ₹3508.90 crore. This fund has an exit load of 1% and an expense ratio of 0.48%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  62.72%, Debt at 14.22% and Other at 10.02%.

UTI Multi Asset Allocation Fund

UTI Multi Asset Allocation Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013. 

UTI Multi Asset Allocation Fund Direct-Growth as a credit risk fund, manages assets valued at ₹3459.61 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 18.3%. This fund has an exit load of 1% and an expense ratio of 0.93%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  49.3%, Debt at 17.97% and Other at 20.03%.

Tata Multi Asset Opp Fund

Tata Multi-Asset Opportunities Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from Tata Mutual Fund. This fund has been in existence for 4 years and 7 months, having been launched on 14/02/2020. 

Tata Multi-Asset Opportunities Fund Direct-Growth as a credit risk fund, manages assets valued at ₹3187.72 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 16.46%. This fund has an exit load of 1% and an expense ratio of 0.36%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  55.76%, Debt at 9.52%, and Other at 24.7%.

Quant Multi Asset Fund

Quant Multi Asset Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Quant Multi Asset Fund Direct-Growth as a credit risk fund, manages assets valued at ₹2725.26 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 31.75%. This fund has an exit load of 1% and an expense ratio of 0.62%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  52.16%, Debt at 9.64% and Other at 27.87%.

Sundaram Multi Asset Allocation Fund

Sundaram Multi Asset Allocation Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme from Sundaram Mutual Fund. This fund has been in existence for 8 months, having been launched on 05/01/2024.

Sundaram Multi Asset Allocation Fund Direct-Growth as a credit risk fund, manages assets valued at ₹2378.07 crore. This fund has an exit load of 1% and an expense ratio of 0.16%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  57.59%, Debt at 9.99% and Other at 10.53%.

What Is a Multi Asset Allocation Fund?

A Multi Asset Allocation Fund is a type of mutual fund that invests in multiple asset classes like equity, debt, and gold. It aims to balance risk and return by diversifying across different investment categories.

These funds reduce portfolio risk by spreading investments across varying asset classes, which tend to perform differently in changing market conditions. This diversification helps investors achieve stable returns, even in volatile markets.

The fund is actively managed, with fund managers adjusting the allocation based on market trends and economic factors, allowing flexibility to optimize returns while managing potential risks effectively.

Features of the Best Multi-Asset Allocation In India

The main features of the best Multi Asset Allocation Fund in India include diversified asset allocation, professional fund management, risk mitigation, and flexible investment options. These features ensure balanced returns and lower volatility.

• Diversified Asset Allocation: The fund invests across equities, debt and gold, spreading risk and aiming for stable returns in various market conditions.
• Professional Fund Management: Experienced managers handle asset allocation and market timing, adjusting investments based on economic trends to optimize performance and manage risk effectively.
• Risk Mitigation: By diversifying investments, the fund reduces reliance on a single asset class, helping to mitigate overall portfolio risk and providing more consistent returns.
• Flexible Investment Options: Investors can choose from different investment amounts and plans, such as lump sum or SIP, catering to various financial goals and risk tolerances.

Top Multi Asset Allocation Funds Based on Expense Ratio

The table below shows the Best-performingMulti Asset Allocation Funds Based on the highest to lowest expense ratio.

Best Multi-Asset Allocation Funds Based on 3Y CAGR

The table below shows the BestMulti Asset Allocation Funds Based on the Highest 3Y CAGR.

List Of Multi Asset Allocation Funds Based on Exit Load

The table below shows Best PerformingMulti Asset Allocation Funds In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Multi-Asset Allocation Fund Returns

The table below shows Asset Allocation Funds Returns Based on 1Y return.

Historical Performance of Multi Asset Allocation Funds

The table below shows the Historical Performance OfMulti Asset Allocation Funds based on 5Y return

Factors to Consider When Investing in Multi-Asset Allocation Funds

The main factors to consider when investing in Multi Asset Allocation Funds include your financial goals, risk tolerance, fund performance and expense ratios. Evaluating these aspects helps ensure the fund aligns with your investment strategy and expectations.

• Financial Goals: Align the fund with your long-term financial objectives, such as retirement or wealth accumulation, to ensure it meets your specific investment needs and time horizon.
• Risk Tolerance: Assess your comfort with market volatility and potential losses. Choose a fund that matches your risk tolerance to avoid excessive fluctuations in your investment value.
• Fund Performance: Review historical performance and compare it with other funds. Consistent returns over different market conditions indicate a well-managed fund with a proven track record.
• Expense Ratios: Evaluate the fund’s expense ratio, which includes management fees and other costs. Lower expenses can lead to better net returns, so opt for funds with reasonable and transparent fees.

How to Invest in Top Multi Asset Allocation Funds?

To invest in top Multi Asset Allocation Funds, start by researching funds with strong performance records, consistent returns and reputable fund managers. Use platforms like financial websites or apps to compare their historical performance and risk profiles before making a decision.

Next, open an investment account through  Alice Blue. Complete the KYC (Know Your Customer) process, which involves submitting identification and financial documents to verify your identity and eligibility for investing.

Once your account is set up, choose the desired Multi Asset Allocation Fund, specify your investment amount and select either a lump sum or SIP (Systematic Investment Plan) option. Monitor your investment regularly for performance updates.

Impact of Market Trends on Top Multi Asset Allocation Funds

Market trends significantly impact Multi Asset Allocation Funds, as they invest in multiple asset classes like equity, debt and gold. Positive equity market trends boost returns, while falling markets may see better performance from debt or gold allocations.

In volatile market conditions, fund managers adjust asset allocation to mitigate risks and capitalize on favourable trends. Diversification helps balance returns, but changing interest rates, inflation and economic factors can still affect the overall performance of these funds.

How Multi Asset Allocation Funds Perform in Volatile Markets?

In volatile markets, Multi Asset Allocation Funds perform better due to diversification across asset classes like equity, debt and gold. When one asset class declines, others may offer stability, reducing overall risk and providing more consistent returns.

Fund managers actively adjust asset allocations in response to market conditions, optimizing the portfolio’s balance. By shifting towards safer assets like debt or gold during downturns, these funds minimize losses and offer a more resilient performance in unpredictable market environments.

Advantages of Investing in Multi Asset Allocation Funds

The main advantages of investing in Multi Asset Allocation Funds include diversified risk, professional management, potential for balanced returns and flexibility in investment amounts. These benefits collectively enhance portfolio stability and growth potential across varying market conditions.

• Diversified Risk: Investing across multiple asset classes like equity, debt and gold spreads risk, reducing the impact of poor performance in any single asset class and providing more stable returns.
• Professional Management: Fund managers actively manage the allocation and rebalance of investments based on market conditions, leveraging their expertise to optimize returns and handle market volatility effectively.
• Balanced Returns: The fund aims to achieve a balance between risk and return by diversifying investments, potentially offering more consistent performance compared to funds focused on a single asset class.
• Flexibility in Investment Amounts: Investors can choose various investment options, such as lump sum or SIP, allowing for customization based on individual financial goals, risk tolerance and investment horizon.

Risks of Investing in Multi-Asset Allocation Funds

The main risks of investing in Multi Asset Allocation Funds include market volatility, fund manager decisions, asset class performance variability and fee structures. These factors can impact returns and may result in potential losses or lower-than-expected performance.

1. Market Volatility: Despite diversification, market fluctuations can affect all asset classes, leading to potential losses. Volatile conditions may impact fund performance and result in unexpected returns.
2. Fund Manager Decisions: The performance of the fund heavily relies on the fund manager’s decisions. Poor management or incorrect asset allocation can lead to suboptimal returns and increased risk.
3. Asset Class Performance Variability: Different asset classes perform differently under various market conditions. If the fund’s allocation is not well-timed, certain asset classes might underperform, affecting overall returns.
4. Fee Structures: High management fees and other costs can erode returns over time. It’s important to consider the expense ratio and ensure that the fees are justified by the fund’s performance and management quality.

Contribution of Multi Asset Allocation Funds to Portfolio Diversification

Multi Asset Allocation Funds enhance portfolio diversification by investing in a mix of asset classes like equity, debt and gold. This reduces reliance on a single asset class, helping to balance risk and achieve more stable returns over time.

By spreading investments across varying asset types, these funds lower the impact of market volatility on the overall portfolio. This strategic diversification allows investors to benefit from different market conditions, improving long-term growth potential while managing risk effectively.

Who Should Invest in Multi Asset Allocation Funds?

Investors seeking balanced risk and return should consider Multi Asset Allocation Funds. These funds are ideal for individuals who prefer a diversified portfolio but lack the time or expertise to manage separate investments in equities, debt and gold.

They suit moderate-risk investors looking for stability during market fluctuations, as these funds spread risk across asset classes. They are also ideal for long-term investors aiming for steady growth with reduced volatility, making them a versatile option for various financial goals.

Impact of Fund Manager Expertise on Multi Asset Allocation Funds Performance

Fund manager expertise plays a crucial role in Multi Asset Allocation Funds’ performance. Skilled managers make strategic decisions on asset allocation, adjusting investments based on market trends to optimize returns while minimizing risks across equities, debt and gold.

Experienced fund managers carefully analyze economic conditions and market movements to rebalance the portfolio effectively. Their ability to time allocations and identify growth opportunities ensures that the fund adapts to changing markets, directly influencing its overall performance and stability.

How Much Money Should I Invest In Multi Asset Allocation Funds?

The amount to invest in Multi Asset Allocation Funds depends on your financial goals, risk tolerance and investment horizon. Allocate a portion of your overall portfolio that aligns with your long-term objectives and offers balanced risk diversification.

It’s advisable to start small and gradually increase investments through a Systematic Investment Plan (SIP) if you’re unsure. Consult a financial advisor to determine the ideal investment amount, considering your income, liabilities and overall asset allocation strategy.

Multi-Asset Allocation Fund Taxation

Multi Asset Allocation Funds are taxed based on their equity exposure. If the fund holds over 65% in equities, it is taxed like an equity fund. Gains held for over one year are subject to 10% tax, while short-term gains incur 15%.

If equity exposure is below 65%, the fund is taxed as a debt fund. Long-term gains (held over three years) are taxed at 20% with indexation benefits, while short-term gains are added to your income and taxed at your income tax slab rate.

FAQs – List Of Multi Asset Allocation Funds

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