The multi-asset funds have managed to withstand the meltdown in gold and silver prices due to the inherent asset diversification.
In the last few months, investors made a beeline for silver, buoyed by triple-digit returns, but in a single trading day, silver prices crashed by a whopping 25 per cent. Gold prices have also corrected by about 10 per cent in the last few trading sessions.
With the breakneck rally in precious metals prices, market experts have advised investors to opt for schemes which offer a mix of investments in commodities and equity to reduce risk and create a more balanced portfolio.
Multi-asset allocation funds invest in a minimum of three different asset classes such as equity, debt and commodities, which include gold and silver. However, a few mutual fund houses, playing to the gallery, created funds of funds that invested 50 per cent each in silver and gold.
Leading the charts is the Nippon India Multi-Asset Allocation Fund, which has given returns of 24 per cent, 20 per cent and 23 per cent in the last one, two and three years. In fact, the top 10 multi-asset allocation funds have grown at an average CAGR of 20 per cent in the last one year and 21 per cent over a three-year period. In comparison, the top 10 equity funds had return numbers of just 17 per cent in the last one year.
Aparna Karnik, SVP and Fund Manager, DSP Mutual Fund, said commodities are inherently volatile and sharp commodity price rallies are usually accompanied by volatility.
Multi-asset fund NAVs will naturally reflect the sharp moves in underlying commodities depending upon their overall allocations. “We have always encouraged investors to view multi-asset allocation funds with a long-term lens. Having a balanced mix of assets will benefit investors in the long run,” she said.
Published on February 10, 2026