Hybrid Mutual Funds with High Returns: Hybrid mutual funds are known for better risk management. But this does not mean that hybrid funds cannot give high returns. Multi Asset Allocations Funds also come under the category of hybrid funds and the top 6 such schemes have given excellent returns in the last 5 years. The current fund value of Rs 1 lakh invested in these funds 5 years ago has currently increased from 2 times to almost 4 times. The special thing is that multi asset funds provide a balanced portfolio to their investors by investing in many different asset classes.
Top Multi Asset Funds and their Returns
All the 6 multi asset allocation funds in the country that are 5 years old or more have given annual returns (CAGR) of 15% to 31% in the last 5 years. You can check the details of these schemes here:
1.Quant Multi Asset Fund
- Last 5 Year Return (Direct Plan): 31.45%
- Current value of Rs 1 lakh invested 5 years ago: Rs 3,92,467
- Asset Under Management (AUM): Rs 2,972.94 crore
- Benchmark: BSE 200 TRI(65.00), MCX I-COMDEX Composite Index(20.00), CRISIL Short-Term Bond Index(15.00)
2. ICICI Prudential Multi Asset Fund
- Last 5 Year Return (Direct Plan): 22.98%
- Current value of Rs 1 lakh invested 5 years ago: Rs 2,81,302
- Asset Under Management (AUM): Rs 50,185.82 crore
- Benchmark : NIFTY 200 TRI(65.00), NIFTY Composite Debt Index(25.00), Domestic Price of Gold(6.00), MCX I-COMDEX Composite Index(3.00), Domestic Price of Silver(1.00)
3. UTI Multi Asset Allocation Fund
- Last 5 Year Return (Direct Plan): 17.95%
- Current value of Rs 1 lakh invested 5 years ago: Rs 2,28,291
- Asset Under Management (AUM): Rs 3,955.97 crore
- Benchmark : BSE 200 TRI(65.00), CRISIL Composite Bond Index(25.00), Domestic Price of Gold(10.00)
4. HDFC Multi Asset Fund
- Last 5 Year Return (Direct Plan): 17.86%
- Current value of Rs 1 lakh invested 5 years ago: Rs 2,27,422
- Asset Under Management (AUM): Rs 3,706.44 crore
- Benchmark : NIFTY 50 TRI(65.00), NIFTY Composite Debt Index(25.00), Domestic Price of Gold(10.00)
5. SBI Multi Asset Allocation Fund
- Last 5 Year Return (Direct Plan): 15.98%
- Current value of Rs 1 lakh invested 5 years ago: Rs 2,09,853
- Asset Under Management (AUM): Rs 6,220.73 crore
- Benchmark : BSE 500 TRI(45.00), CRISIL Composite Bond Index(40.00), Domestic Price of Gold(10.00), Domestic Price of Silver(5.00)
6. Axis Multi Asset Allocation Fund
- Last 5 Year Return (Direct Plan): 15.71%
- Current value of Rs 1 lakh invested 5 years ago: Rs 2,07,422
- Asset Under Management (AUM): Rs 1,320.37 crore
- Benchmark : NIFTY 500 TRI(65.00), NIFTY Composite Debt Index(20.00), Domestic Price of Gold(7.50), Domestic Price of Silver(7.50)
Also read: Explained: Multi asset funds invest in every asset class from equity to gold, then on what basis is tax levied?
What are Multi Asset Funds?
Multi asset funds are those mutual fund schemes whose portfolio includes three or more asset classes. These funds invest in equities, debt/bonds and commodities like gold, silver. Some multi asset funds also invest in real estate investment trusts (REITs), infrastructure investment trusts (InvITs) and international stocks. Their objective is to reduce risk by investing in different asset classes and provide better returns in every market condition.
Also read: SBI Small Cap Fund made 1 lakh into 18 lakh! More than 7.5 times return on SIP investment too
Benefits of Multi Asset Funds
Ready-made Portfolio: These funds offer investors an opportunity to invest in a ready-made portfolio that invests across different asset classes.
Risk Management: To manage risk, multi asset funds rebalance their portfolio from time to time, which helps in dealing with market fluctuations.
Diversification : Investors do not have to invest in separate funds for each asset class. The benefit of diversification is available in a single scheme.
Also read: Money Multiplier: Funds that multiply investment 4 to 5 times in 5 years, these 7 mid cap funds become ‘wealth multiplier’
Invest wisely
Multi asset funds, along with the ability to give high returns, also provide better risk management. These funds can prove to be an excellent option especially for those investors who are looking for a balanced portfolio. But despite the balanced portfolio, due to large market exposure, most multi asset funds fall into the high or very high risk category. Therefore, any decision to invest in them should be taken keeping in mind your risk-taking capacity. It should also not be forgotten that the past returns of any mutual fund cannot guarantee similar performance in the future.
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment. Past returns of a mutual fund cannot be considered a guarantee of similar performance in the future. Take any investment decision only after consulting your investment advisor.)
