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Investor interest in multi-asset allocation funds is rising, with AMFI data showing a Rs 5,344.19 crore net inflow in October 2025 and AUM reaching Rs 1,51,071 crore.
Multi-Asset funds invest in equities, gold and debt.
Multi-Asset Funds: The inclination of investors is shifting towards multi-asset allocation funds, as seen in the past three months of Association of Mutual Funds in India (AMFI) data. The net inflow touched Rs 5,344.19 crore in October 2025, up 7.27 per cent from September 2025, according to AMFI. Month-on-month AUM in multi-asset fund grew to Rs 1,51,071 crore in October.
What Are Multi-Asset Allocation Funds?
Multi-asset funds invest across equity, debt, and commodities like gold and silver, so investors get the benefit of diversification in one place. A fund will be called a Multi Asset Allocation Fund only if it invests a minimum 10 per cent each in three asset classes.
The recent outperformance by bullions such as gold and silver (over 50% return in 2025) has shifted investor mindset, seeing them as a good investment options along with equities and an important part in one’s portfolio.
Should You Invest In Multi-Asset Funds?
Navy Vijay Ramavat, Managing Director, Indira Securities, said, in the past year, equities have had a tough run, while commodities such as gold and silver have done exceptionally well, and debt has offered steady income.
“That’s why, in the current environment, they’re a smart option for investors who want a higher probability of stable, consistent returns without taking too much risk because they get diversification,” Ramavat said.
Investors will be better off investing in multi-asset funds with the current market slowdown and rise in gold prices, explained both Devender Singhal and Abhishek Bisen, fund managers, at Kotak Mutual Fund.
Why invest now?
– Risk Management: Indian equity markets continued its decline in August-25 as there was caution for the month due to imposition of 50% trade tariffs by US on India’s export to US and a lukewarm Q1 results season, outweighing positive news on India’s sovereign credit rating upgrade, talks on GST rationalization and dovish statement from US Fed boosting expectations of early rate cut.
MAAFs can help manage risks better by spreading investments across different asset classes, given that we are currently facing geopolitical tensions, inflation concerns, and market volatility, Singhal added.
– Gold as a Hedge: Having gold in a portfolio can act as a hedge against market downturns and inflation, gold prices have been on a rally for the entire CY25
– Flexibility: Multi-asset funds offer dynamic allocation, allowing fund managers to adjust exposure to different asset classes based on market conditions.
5 Multi-Asset Allocation Fund Options
| Fund Name | Latest NAV (Direct–Growth) | Fund Size (AUM) | Risk Level | 1-Year Return | 3-Year Return |
|---|---|---|---|---|---|
| Nippon India Multi Asset Fund | ~₹25 | ~₹8,700 crore | Very High | ~17% | ~20–21% |
| ICICI Prudential Multi Asset Fund | ~₹600 | ~₹72,000 crore | High | ~16–17% | ~18–19% |
| Tata Multi Asset Allocation Fund | ~₹18 | ~₹4,500 crore | Very High | ~15% | ~16–18% |
| SBI Multi Asset Allocation Fund | ~₹34 | ~₹11,300 crore | Very High | ~15–17% | ~15–16% |
| DSP Multi Asset Allocation Fund | ~₹22 | ~₹5,000 crore | High | ~11–13% | ~19–20% |
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
November 27, 2025, 06:30 IST
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