Multi asset allocation funds are gaining serious traction in India—and it’s not just a trend, it’s a strategy. These funds don’t put all your eggs in one basket. Instead, they spread your investment across equity, debt, and even gold—automatically. Sounds smart? That’s because it is.
In this blog, we’ll break down how these funds really work, what makes the best multi asset allocation fund stand out in 2025, and which ones are currently outperforming the rest. If you’ve heard the term but never really understood the “why” behind the rising buzz, you’re exactly where you need to be.
Here are the best multi asset allocation funds in India based on their 3-year returns. These funds offer a smart blend of equity, debt, and gold—perfect for investors who want diversification with solid historical performance.
These funds represent a mix of aggressive and balanced strategies. For anyone searching for the best multi asset mutual fund in 2025, this list is a solid starting point for research and comparison.
A multi asset allocation fund is a type of mutual fund that invests your money in more than one asset class—typically a mix of equity (stocks), debt (bonds), and gold. Unlike regular mutual funds that may focus only on one category, these funds automatically balance your money across different assets, aiming to reduce risk and smooth out returns over time.
As per SEBI (India’s market regulator), these funds must invest in at least three asset classes, and each class should have a minimum of 10% allocation. So you're not just depending on how the stock market performs—your money is spread out, and that helps protect it during ups and downs.
What makes a multi asset mutual fund stand out is its flexibility. When equity markets fall, your debt or gold portion might hold strong. And when markets rise, your equity can help grow wealth faster. This balancing act is handled by professional fund managers, so you don’t have to constantly check or shift your investments yourself. It’s ideal for those who want diversification but don’t want to manage it manually.
In this section, we’ll give you a quick overview of the top multi asset allocation funds in India for 2025. These summaries will help you understand how each fund works, what makes them unique, and whether they align with your goals.
This fund is known for its aggressive investment style and bold asset positioning. With a stunning 3-year return of over 80%, it’s one of the top-performing multi asset allocation funds in India. Suitable for high-risk investors who want strong returns and can handle market volatility.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 7.14 | 82.75 | 332.68 |
One of the most trusted names in the category, this fund has a balanced and actively managed strategy across equity, debt, and gold. With one of the highest AUMs, it's often seen as a go-to option for those looking for a stable multi-asset mutual fund.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 13.71 | 80.10 | 234.87 |
A consistently reliable performer, this fund focuses on long-term wealth generation with a well-balanced approach. It’s ideal for investors looking to stay invested across cycles with moderate risk.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 9.82 | 78.95 | 149.57 |
This fund has delivered strong short-term and long-term returns, making it popular among investors looking for high equity exposure with the cushion of gold and debt. Its low expense ratio is another plus.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 33.13 | 66.52 | 94.48 |
Backed by Tata’s trusted name, this multi asset mutual fund offers a strategic blend of growth and stability. It suits medium- to long-term investors who want a mix of returns and capital protection.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 10.22 | 63.88 | 168.28 |
This fund benefits from SBI’s robust fund management and investor trust. With strong AUM and steady returns, it's perfect for conservative investors who still want exposure to equity and gold.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 10.72 | 62.62 | 116.82 |
HDFC’s fund focuses on long-term value with a cautious approach to equity and debt. It appeals to investors looking for growth but who prefer a stable, less aggressive style.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 12.49 | 57.84 | 156.67 |
Axis’s fund is designed for investors who want a ready-made solution to diversify across equity, fixed income, and commodities. While its 3-year return is moderate, it's backed by a reputable brand.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 10.84 | 45.54 | 125.76 |
A relatively underperforming fund compared to others in this list, but it still offers diversified exposure. Best for conservative investors who prefer smaller, experimental allocations.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -5.31 | 18.21 | 26.87 |
Although long-term return data isn’t available, the fund has shown promising recent performance and is backed by a strong AMC. It's a good option for new investors starting their multi asset fund journey.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 14.99 | NA | NA |
The year 2025 is expected to bring both opportunities and uncertainty in the financial markets. With inflation, global tensions, and interest rate swings in play, having all your money in one type of investment might be risky. That’s where multi-asset mutual funds come in—they spread your money across different asset classes to balance risk and reward.
Before you jump into a multi asset allocation fund, it's important to understand a few key factors that can impact your investment. Here's what you need to look at:
One of the easiest and most beginner-friendly ways to start investing in multi asset allocation funds is through trusted online investment platforms that offer direct access to mutual funds without commissions.
A multi asset allocation fund spreads your investment across at least three different asset classes—commonly equity (stocks), debt (bonds), and gold. Each asset plays a different role in protecting and growing your wealth.
Here's how the allocation typically works:
The exact mix changes based on the fund manager’s strategy and market conditions. Some funds are aggressive with higher equity, while others are more balanced with more debt and gold.
For example, in a bearish market, the manager might reduce equity and increase gold holdings. And when markets are bullish, they might shift more toward equity to capture higher returns.
Multi asset mutual funds are becoming a go-to choice for Indian investors in 2025—and for good reason. These funds offer a smart, low-effort way to stay invested across different market conditions without the need to manage multiple investments on your own.
While asset allocation mutual funds offer several benefits, they’re not perfect. It’s important to know the downsides before investing so that your expectations are realistic.
Multi-asset allocation funds offer one of the most balanced approaches to investing in 2025. By spreading your money across equity, debt, and gold, they help reduce risk without compromising too much on returns. These funds are especially useful for Indian investors who want a smoother ride through volatile markets while still aiming for long-term growth. Whether you're just starting out or want to diversify your portfolio, picking the best multi asset allocation fund can give you that perfect middle ground between safety and performance.
A multi asset allocation fund is a type of mutual fund that invests in at least three different asset classes—usually equity, debt, and gold. The aim is to balance risk and reward by diversifying your money, so if one asset underperforms, the others can potentially offset the losses. These funds are actively managed and often rebalanced depending on market conditions.
As of 2025, the best multi asset funds include Quant Multi Asset Fund, ICICI Prudential Multi Asset Fund, UTI Multi Asset Allocation Fund, Nippon India Multi Asset Allocation Fund, and Tata Multi Asset Opportunities Fund. These funds have delivered impressive 3-year returns, backed by experienced fund managers and diversified portfolios across equity, debt, and gold.
On average, multi asset allocation funds in India have delivered around 10%–15% annual returns over the last 3 to 5 years. However, some top-performing funds have gone beyond 60%–80% over a 3-year period. Returns can vary based on market cycles, asset allocation strategy, and fund manager performance.
A Multi Asset Allocation Fund NFO (New Fund Offer) is a newly launched fund in this category. During an NFO, investors can purchase units at a base NAV (usually ₹10). While NFOs may sound attractive, it’s always wise to compare them with existing top-performing multi asset funds before investing, since NFOs don't have a performance track record yet.
Yes, absolutely. Most multi-asset mutual funds allow SIP (Systematic Investment Plan) options starting as low as ₹500 per month. SIPs are a great way to invest regularly, reduce the impact of market volatility, and build wealth gradually over time.
Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.
