Multi-asset allocation funds are mutual fund schemes that invest a minimum of 10% of their portfolio in a mix of three or more different asset classes. These funds typically invest in a combination of equity, debt and at least one more asset class like real estate, gold, etc. This type of hybrid funds offer investors a diversified portfolio and mitigates the risks of investment. Some of the best multi asset allocation mutual funds are listed here.
Benefits Of Multi Asset Allocation Mutual Funds
- Investors get exposure to a well diversified portfolio through a single fund.
- Nominal or zero risk of concentration.
- These funds typically offer steady returns over time.
- Suitable for a long-term investment horizon, at least 3 years.
- Risk associated with multi-asset allocation funds is lesser than that with most hybrid funds.
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Best Multi Asset Allocation Mutual Funds In India
Listed below are the best asset allocation mutual funds in India for resident and NRI investors:
| Multi asset fund | Fund size | Return p.a. | VRO rating |
|---|---|---|---|
| Quant Multi Asset Fund | Rs. 335 cr | 19.0% | 5* |
| ICICI Prudential Multi Asset Fund | Rs. 13,728 cr | 13.2% | 4* |
| Aditya Birla Sun Life Financial Planning FOF Conservative Plan | Rs. 14 cr | 4.9% | 4* |
| Aditya Birla Sun Life Financial Planning FOF Aggressive Plan | Rs. 159 cr | 6.99% | 3* |
| HDFC Dynamic PE Ratio FOF Scheme | Rs. 30 cr | 11.18% | 3* |
| HDFC Multi Asset Fund | Rs. 1,555 cr | 7.85% | 4* |
| SBI Multi Asset Allocation Fund | Rs. 588 cr | 9.11% | 4* |
| Aditya Birla Sun Life Financial Planning FOF Moderate Plan | Rs. 28 cr | 5.76% | 3* |
| Axis Triple Advantage Fund | Rs. 1761 cr | 0.94% | 3* |
| Quantum Multi Asset FOF | Rs. 47 cr | 5.77% | 3* |
| UTI Multi Asset Fund | Rs. 868 cr | 6.49% | 2* |
Note: SBNRI is an authorised Mutual Fund Distributor platform & registered with Association of Mutual Funds in India (AMFI). ARN No. 246671
Taxability
Capital gain tax
Gains from mutual funds investment are subject to income tax for resident and NRI investors.
| Funds | Short-term capital gain (STCG) tax | Long-term capital gain (STCG) tax |
|---|---|---|
| Equity Fund | 15% | 10% without indexation benefits |
| Debt funds | As per investor’s tax slab | 20% with indexation benefits |
TDS
Residents: No applicable for resident investors
NRIs: Mutual fund investments made by NRIs are subject to TDS deduction in India. TDS will be deducted from your LTCG at 20% for debt and other non-equity funds.
Relief From Double Taxation
Mutual funds are one of the best options for NRI investment in India. India has signed the DTAA (Double Taxation Avoidance Agreement) with more than 90 countries. As per the agreement, NRIs have to pay tax in only one country. This means if they have already paid taxes on their mutual fund gains in India, they are not required to pay tax for the same in the country of your residence.
Before investing in Indian market, NRIs must consult market experts to make informed decisions. You can get detailed mutual fund advisory from experts at SBNRI. You can download SBNRI App from the Google Play Store or App Store to ask any questions related to mutual fund investment, NRI account opening online and tax filing in India. To ask any questions related to Mutual Funds, click on the button below. Also visit our blog and YouTube channel for more details.
FAQs
Multi asset allocation funds have a combination of multiple securities across equity, debt markets, and real estate, real estate, etc. They keep changing with an aim to give investors exposure to a diversified portfolio. Hence, you should stay invested for an investment horizon of at least 5 years.
The allocation of these depends on which asset classes the fund will invest in. Multi allocation funds invest at least 10% of their portfolio in at least three asset classes, the exact percentage allocation to each of these asset classes is also decided by the fund.
Multi asset allocation funds are balanced mutual funds. They have delivered returns on an average 10.55% p.a. Returns in the last 5 years. Annualized returns range between 15.22 and 9.09% p.a.
