6 multi-asset funds with 15%+ returns over 5 years

Summary: Multi-asset allocation funds spread at least 10 per cent of investor money across at least three asset classes, such as equity, debt, real estate and commodities (often gold). Here, we highlight six such funds that have rewarded investors with impressive five-year returns.

A type of hybrid fund, multi-asset allocation funds (MAAFs) spread their bets across at least three asset classes, with a minimum allocation of 10 per cent in each. Typically, this means a mix of equities, debt and commodities such as gold or silver. However, they can also tap into real estate, arbitrage or InvITs.

Think of them as the Swiss Army knife of mutual funds – versatile, flexible and designed to handle different market conditions with one tool. The idea is simple: when one asset class underperforms, another can compensate, helping cushion portfolios when the markets are choppy.

Long-term performance

When it comes to performance, multi-asset allocation funds have delivered decent returns, with some achieving returns of over 15 per cent over a five-year period. Had you started a Rs 10,000 monthly SIP (systematic investment plan) in any of these funds five years ago, your investment would be valued at over Rs 8-10 lakh today.

Below is the list of the standouts.

#6 SBI Multi Asset Allocation Fund (Direct plan)

• Five-year SIP return: 15.78 per cent
• Value of a Rs 10,000 SIP after five years: Rs 8.89 lakh
• Assets under management: Rs 9,819 crore
• Expense ratio: 0.58 per cent

#5 Tata Multi Asset Allocation Fund (Direct plan)

• Five-year SIP return: 15.87 per cent
• Value of a Rs 10,000 SIP after five years: Rs 8.93 lakh
• Assets under management: Rs 4,048 crore
• Expense ratio: 0.40 per cent

#4 UTI Multi Asset Allocation (Direct plan)

• Five-year SIP return: 17.63 per cent
• Value of a Rs 10,000 SIP after five years: Rs 9.30 lakh
• Assets under management: Rs 5,941 crore
• Expense ratio: 0.59 per cent

#3 Nippon India Multi Asset Allocation Fund (Direct plan)

• Five-year SIP return: 18.95 per cent
• Value of a Rs 10,000 SIP after five years: Rs 9.60 lakh
• Assets under management: Rs 6,959 crore
• Expense ratio: 0.28 per cent

#2 ICICI Prudential Multi Asset Allocation Fund (Direct plan)

• Five-year SIP return: 20.60 per cent
• Value of a Rs 10,000 SIP after five years: Rs 10 lakh
• Assets under management: Rs 64,770 crore
• Expense ratio: 0.66 per cent

#1 Quant Multi Asset Allocation Fund (Direct plan)

• Five-year SIP return: 22.60 per cent
• Value of a Rs 10,000 SIP after five years: Rs 10.52 lakh
• Assets under management: Rs 3,666 crore
• Expense ratio: 0.61 per cent

How did multi-asset funds fare during the recent correction?

Where multi-asset funds really prove their worth is in limiting damage when markets stumble. Consider the recent correction: from late September 2024 to February 2025, the Nifty 500 TRI declined by 18.6 per cent. In contrast, multi-asset funds on average fell only about 8.1 per cent.

Their built-in diversification was the key. With around 50-55 per cent in equities, plus allocations to debt and commodities like gold, MAAFs were better cushioned. Gold in particular sparkled as equities sank, while debt provided stability.

However, when the market recovered, MAAFs didn’t rebound as strongly. From the February lows, these funds rose only around 9.5 per cent, compared with 14.7 per cent for the broader market. Simply put, MAAFs offered a smoother ride when the market was turbulent but traded off some upside.

So, are multi-asset funds a part of our recommendation? 

The answer depends on your goals, risk appetite and what you already own. 

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Also read: What are multi-asset funds? A beginner's guide