Top 5 Multi Asset Allocation Funds:Multi Asset Allocation Funds (MAAFs) have gained immense popularity among investors over the last few years. Their attractiveness increases especially during market fluctuations. The biggest feature of these mutual funds falling in the hybrid category is that through them one can invest in different assets like equity, debt and gold in a single scheme. Due to which the balance between risk and return is better. This is the reason why they are considered a better investment option in case of market instability. Top 5 Multi Asset Funds have maintained the confidence of investors with their performance in the last 3, 5 and 10 years. Their average returns have generally been better than aggressive hybrid funds and balanced advantage funds. This is the reason why the inflow of funds has also been quite good.
Why has the attractiveness of multi asset funds increased?
The main objective of Multi Asset Allocation Funds (MAAFs) is to provide balanced returns to investors even during market volatility. Apart from equity, debt and gold, investments are also made in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Such funds adjust their asset allocation dynamically according to market conditions, thereby providing investors with better returns and lower risk.
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Top 5 multi asset funds giving best returns in 3 years
Name of the Scheme / 3 Year Average Annual Return
– Quant Multi Asset Fund (Direct Plan): 23.15%
– ICICI Prudential Multi Asset Fund (Direct Plan): 20.00%
– UTI Multi Asset Allocation Fund (Direct Plan): 18.67%
– Nippon India Multi Asset Allocation Fund (Direct Plan): 16.36%
– SBI Multi Asset Allocation Fund (Direct Plan): 15.63%
These figures show that during the last 3 years, the top 5 multi asset allocation funds have performed well in terms of returns.
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Top 5 Multi Asset Funds: 5 Year Returns
The average annual return of the top 5 multi-asset funds in the last 5 years has been better than the three-year returns. You can see this in the figures below:
Scheme Name / 5 Year Average Annual Return
– Quant Multi Asset Fund (Direct Plan): 28.93%
– ICICI Prudential Multi Asset Fund (Direct Plan): 22.45%
– HDFC Multi Asset Fund (Direct Plan): 17.23%
– UTI Multi Asset Allocation Fund (Direct Plan): 17.00%
– SBI Multi Asset Allocation Fund (Direct Plan): 15.35%
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Top 5 multi asset funds giving best returns in 10 years
Mutual funds are generally considered a better option for long term investment. Therefore, we are also giving here the 10-year return figures of the top 5 multi-asset funds, which show that their performance over such a long period has been quite satisfactory:
Scheme Name / 10 Year Average Annual Return
– Quant Multi Asset Fund (Direct Plan): 17.87%
– ICICI Prudential Multi Asset Fund (Direct Plan): 15.55%
– SBI Multi Asset Allocation Fund (Direct Plan): 15.55%
– HDFC Multi Asset Fund (Direct Plan): 11.97%
– Axis Multi Asset Allocation Fund (Direct Plan): 11.64%
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For whom are multi asset funds a better option?
The biggest feature of multi asset funds is their dynamic asset allocation strategy. These funds change their investment strategy based on market conditions and economic indicators, thereby providing investors a balance between risk and return. In these funds, more than 10% is invested in equity, debt, and gold, due to which investors get better returns even during market volatility. Multi asset funds have proven to be a safe and profitable option for investors. The diversified portfolio and dynamic allocation strategy of these funds helps investors in getting balanced returns. Those investors who are looking for an investment option that not only provides good returns in the long term but also maintains stability during market volatility, can consider investing in multi asset funds. However, before deciding to invest, they should keep in mind that the past returns of a mutual fund cannot be considered as a guarantee of similar performance in the future. Apart from this, the risk level of most multi asset allocation funds is either ‘high’ or ‘very high’. That means there is risk associated with investing in them also. Therefore, take any step only keeping in mind your risk taking ability.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any fund. The past performance of mutual funds cannot be considered as a guarantee of future returns. Any investment decision should be taken based on the opinion of your investment advisor. Just take it.)
