Top Multi Asset Allocation Funds – List of Hybrid Funds in India (2026)
Multi Asset Allocation Fund, in accordance with SEBI guidelines, distributes a minimum of 10% across three or more asset classes, such as equities, debt, gold, real estate, and commodities. This diversified portfolio allocation mitigates risk from volatility in any asset class and gives investors wide exposure, potentially leading to multi asset fund growth and favourable returns. In this blog, we will look at a list of multi asset allocation funds in India, heir benefits, risks, how to invest in them, and more!
Top 10 Multi Asset Allocation Funds
Here is a list of the top 10 multi asset funds in India:
| Fund Name | AUM (in Cr.) | CAGR 3Y (%) | Expense Ratio | CAGR 5Y (%) |
|---|---|---|---|---|
| Quant Multi Asset Allocation Fund | 5,257.41 | 24.69 | 0.58 | 21.38 |
| ICICI Pru Multi-Asset Fund | 83,547.35 | 17.87 | 1.07 | 18.62 |
| Nippon India Multi Asset Allocation Fund | 14,737.58 | 21.81 | 0.28 | 17.75 |
| SBI Multi Asset Allocation Fund | 17,665.99 | 18.76 | 0.59 | 15.17 |
| UTI Multi Asset Allocation Fund | 6,864.59 | 18.40 | 1.19 | 15.07 |
| Tata Multi Asset Allocation Fund | 4,668.60 | 16.10 | 0.46 | 14.77 |
| HDFC Multi-Asset Allocation Fund | 5,887.05 | 13.98 | 0.82 | 13.28 |
| Axis Multi Asset Allocation Fund | 2,228.78 | 14.93 | 0.63 | 12.26 |
| Baroda BNP Paribas Multi Asset Fund | 1,408.46 | 17.60 | 0.76 | 0.00 |
| Aditya Birla SL Multi Asset Allocation Fund | 6,530.45 | 18.25 | 0.51 | 0.00 |
Disclaimer: Please note that the above table is for educational purposes only and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Funds Screener on 13th May 2026 and is subject to real-time updates.
- Plan: Growth
- Category: Multi Asset Allocation Fund
- 5Y CAGR: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of the Top Multi Asset Allocation Funds in India 2025
Quant Multi Asset Fund
The Quant Multi Asset Fund follows a data-driven investment strategy, dynamically adjusting its allocation across equity, debt, and commodities. It employs a unique predictive approach, focusing on market cycles and economic indicators to optimise returns while managing risk effectively.
ICICI Prudential Multi Asset Fund
The ICICI Prudential Multi-Asset Fund is one of the most well-known in its category, offering a balanced mix of equity, fixed income, and commodities. It actively rebalances its portfolio based on market conditions, making it a good option for investors seeking both growth and stability.
Nippon India Multi Asset Allocation Fund
The Nippon India Multi Asset Allocation Fund offers diversification across multiple asset classes, benefiting from Nippon’s expertise in active fund management. It seeks to deliver steady performance by strategically allocating investments in different segments of the market.
SBI Multi Asset Allocation Fund
The SBI Multi Asset Allocation Fund actively manages investments in equities, debt, and commodities, adjusting its portfolio based on market trends. Its goal is to provide investors with stable and inflation-protected returns while capitalising on growth opportunities.
UTI Multi Asset Allocation Fund
The UTI Multi Asset Allocation Fund is designed to offer a mix of capital appreciation and risk management. It invests across asset classes to maintain a diversified portfolio, ensuring steady returns through different market cycles while benefiting from the expertise of UTI’s fund management team.
Tata Multi Asset Opp Fund
The Tata Multi Asset Opportunities Fund follows a well-structured approach to investing in multiple asset classes, aiming to provide consistent returns while reducing volatility. Its diversified portfolio allows investors to benefit from equity growth, debt stability, and gold’s hedge against inflation.
HDFC Multi-Asset Fund
The HDFC Multi-Asset Fund leverages HDFC’s strong research-driven investment approach to balance risk and reward. By allocating funds across stocks, bonds, and gold, it aims to generate steady long-term returns while protecting investors from market downturns.
Axis Multi Asset Allocation Fund
The Axis Multi Asset Allocation Fund follows a disciplined investment approach, focusing on risk-adjusted returns. It balances investments in equity, debt, and gold to ensure liquidity, flexibility, and stability, making it a suitable choice for long-term wealth creation.
Baroda BNP Paribas Multi Asset Fund
The Baroda BNP Paribas Multi Asset Fund combines global investment insights with a diversified asset allocation strategy. By investing in equities, bonds, and commodities, it seeks to provide investors with stable and risk-managed returns over time.
Aditya Birla SL Multi Asset Allocation Fund
The Motilal Oswal Multi Asset Fund follows a quality-focused investment strategy, primarily selecting high-growth stocks while maintaining exposure to fixed income and commodities. It aims to generate superior long-term returns by leveraging Motilal Oswal’s research-driven approach.
How to Invest in Multi Asset Allocation Funds?
You can easily invest in multi asset allocation mutual funds by following these steps:
- To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
- The next step would be to research and identify the best multi asset allocation funds to invest in which aligns with your investment thesis. You can easily select and learn more about the best multi asset allocation funds with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance. Try it now!
- Once you have selected the funds based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund name in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lump sum amount or start a SIP and start investing!
What is Multi Asset Allocation Fund?
Multi asset allocation funds invest across different asset classes such as equities, debt, gold, and real estate-related instruments within a single scheme. These multi asset mutual funds adjust their asset allocation based on market conditions to balance risk and return potential. The aim is to improve portfolio diversification while managing market volatility.
Now that you understand what a multi asset allocation fund is, let’s look at some of the best multi asset funds and best multi asset income funds based on their 1Y returns and 5Y CAGR.
Features of Multi Asset Allocation Funds
Here are some important features of multi asset allocation funds, including some of the best diversified mutual funds with multi asset allocation:
- Diversification: SEBI requires these funds to invest at least 10% in three or more asset classes. This gives investors exposure to different assets through a single scheme. This structure makes multi asset funds different from many traditional mutual fund categories. Investors should review scheme details carefully and ensure the fund matches their financial goals.
- Fund Manager’s Role: The fund manager plays an important role in multi asset funds because they decide the investment mix and allocation strategy. Since these funds invest across multiple asset classes, the fund manager has greater flexibility in portfolio decisions. Investors should review the fund manager’s experience and track record before selecting the best mixed asset funds for their portfolio.
- Returns: Even the top 10 multi asset funds in India do not guarantee returns. Market conditions can affect performance across all asset classes, including debt investments. Investors should align investments in multi asset funds with their long-term financial objectives and risk profile.
Benefits of Investing in Multi Asset Allocation Funds
Investing in Multi Asset Allocation Funds offers several advantages:
- Enhanced Diversification: These funds reduce concentration risk by spreading investments across multiple asset classes. Diversification may help maintain relatively stable performance across different market cycles.
- Automated Portfolio Rebalancing: Fund managers actively rebalance the portfolio based on market movements and investment strategy. Investors do not need to manually adjust allocations across asset classes.
- Customised Portfolios: Multi Asset Allocation Mutual Funds use market research and asset allocation strategies to build balanced portfolios designed to manage risk and return opportunities.
- Flexible Entry and Exit: Investors can usually enter or exit these funds with reasonable flexibility. Some schemes also allow partial redemptions within specified limits without major penalties, making them suitable for both short-term and long-term investment horizons.
Risks of Investing in Multi Asset Allocation Funds
Investing even in the best performing multi asset funds in India carries certain risks. Investors should understand the following limitations before investing:
- Understanding the Investment: Multi asset allocation funds invest across several asset classes, which can make tracking portfolio performance and risks more complex. Investors may find it difficult to fully understand how each asset class affects returns during different market conditions, even in some of the best hybrid fund options.
- Growth Potential vs. Stability: Diversification helps reduce risk, but it can also limit upside potential. Multi asset funds may not deliver the same level of returns as higher-risk investments focused on a single asset class.
Multi Asset Allocation Fund Taxation
Multi Asset Allocation Funds have varying equity exposure, leading to differing tax implications on returns. Amendments to the 2020 Budget dictate that investors are taxed based on their fund’s classification.
According to the recent changes in multi asset fund taxation, funds with over 65% equity exposure are taxed as equity-oriented, while those with lower exposure are taxed akin to debt funds.
Taxation on Equity Mutual Funds:
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
Taxation on Debt Mutual Funds
| Capital Gains Tax | Description |
| Short-Term Capital Gains (STCG) | If you sell your debt fund units within three years (36 months), the tax will be as per your income tax slab. |
| Long-Term Capital Gains (LTCG) | For debt funds held for over three years (36 months), the tax rate is now a flat 12.5% without indexation benefits. |
The removal of indexation benefits for debt funds means the entire gain from selling a debt fund after three years (36 months) will be taxable at a flat rate of 12.5%.
Factors to Consider While Investing in Multi Asset Allocation Funds
Here are a few factors to keep in mind when assessing the best performing multi asset funds:
- Investment Duration: Investors can consider multi asset allocation funds for medium to long-term goals, ideally over 3-5 years. This time frame may suit multi asset index funds or the best multi asset funds for diversification better than short-term goals.
- Financial Objectives: Investors should check whether their goals match the fund’s focus on balanced growth and stability instead of high returns. Those looking for regular income may assess the best multi asset income funds for portfolio stability.
- Risk Tolerance: Investors should understand whether they are comfortable with the fund’s risk profile. Multi asset funds may suit those who prefer diversification, while investors seeking higher returns may need to accept higher risk.
- Cost Analysis: Investors should review the fund’s expense ratio and understand how active management fees can affect net returns.
- Performance History: Investors should review the fund’s past performance for consistency. However, past performance does not guarantee future returns.
- Fund Manager Expertise: Investors should check the fund manager’s background and track record in managing diversified investments. Many of the best multi asset funds are managed by experienced fund managers who make asset allocation decisions across different market conditions.
To Wrap It Up…
Now that you know what multi asset funds are, your ideal asset allocation hinges on your unique situation. This includes your own age, investment goals, time frame, and risk tolerance. Multi asset allocation funds offer a diverse and comprehensive investment strategy, especially suitable for investors with lower risk tolerance or minimal time for active management. This might be an attractive benefit for investors wishing to diversify their portfolios. However, it is absolutely essential for investors to conduct their own market research and consult a financial advisor before investing in anything.
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Frequently Asked Questions(FAQs) on Multi Asset Allocation Funds
Multi-asset allocation funds are investments that combine different types of assets, such as stocks, bonds, and real estate, into a single fund. These funds use sophisticated algorithms to adjust their investments based on market conditions, aiming to maximise returns while minimising risk.
Multi Asset Allocation Funds provide access to diverse asset classes, adjusting their mix based on predefined rules to achieve an optimal blend.
Multi Asset Allocation Funds determine their investment allocation based on chosen asset classes. The fund also determines the percentage allocation to each class and sets thresholds for transferring funds between classes.
Investors seeking alternatives to fixed income or slightly higher returns with lower risk can opt for multi-asset allocation funds. These funds spread investments across various asset classes, making them suitable for beginners and those with limited financial expertise.
Multi Asset Allocation Funds have varying equity exposure, leading to differing tax implications on returns. Amendments to the 2020 Budget dictate that investors are taxed based on their fund’s classification. Funds with over 65% equity exposure are taxed as equity-oriented, while those with lower exposure are taxed akin to debt funds.
