A multi asset allocation fund spreads your money across at least three asset classes, usually Indian shares, bonds and gold (sometimes silver or foreign shares too). The aim is a smoother ride than a pure equity fund. This guide compares five of these funds with data to September 2026 and explains how they are taxed, which is less simple than many articles suggest.
What SEBI Requires
Under SEBI's circular of 26 February 2026, a multi asset allocation fund must hold at least 10% in each of at least three asset classes. It may also hold small amounts in REITs and InvITs (listed trusts that own property or infrastructure), gold and silver ETFs and exchange-traded commodity derivatives. After the circular, all five funds below were renamed to "Multi Asset Allocation Fund".
Why Mixing Assets Can Help
Shares and gold often move differently. In calendar 2020, when the Nifty 50 fell 38.4% from its January peak to its March low, Nippon India's Gold BeES ETF gained 26.2% for the year. In 2021 the pattern reversed: a Nifty 50 index fund returned 25.3% while Gold BeES fell 4.8%.
But mixing assets reduces falls; it does not remove them. The older funds on this list fell 27–33% in the 2020 crash (see below), not the 10–20% that is often claimed.
Five Multi Asset Allocation Funds Compared
| Fund (current name) | 3 years (a year) | 5 years (a year) | Total expense ratio | Base expense ratio | AUM (₹ Cr) | Equity share |
|---|---|---|---|---|---|---|
| Quant Multi Asset Allocation Fund (formerly Multi Asset Fund) | 21.68% | 19.12% | 1.18% | 0.55% | 6,528 | 53.0% |
| Nippon India Multi Asset Allocation Fund (formerly Multi Asset Fund) | 18.50% | 15.13% | 0.47% | 0.30% | 17,984 | 55.8% |
| ICICI Prudential Multi Asset Allocation Fund (formerly Multi Asset Fund) | 13.69% | 15.10% | 0.84% | 0.56% | 87,833 | 66.4% |
| Tata Multi Asset Allocation Fund (formerly Multi Asset Opportunities Fund) | 12.39% | 11.93% | 0.65% | 0.45% | 5,242 | 63.8% |
| HDFC Multi Asset Allocation Fund (formerly Multi-Asset Fund) | 11.39% | 10.58% | 1.00% | 0.73% | 6,031 | 58.7% |
Direct plan, Growth option, sorted by 5-year return. Returns are annualised, calculated from AMFI NAVs to 28 September 2026. AUM and gross equity share as of 31 August 2026. Expense ratios as of 24–28 September 2026. Since 1 April 2026, funds disclose a base expense ratio (the fund house's own charges) and a total expense ratio that adds brokerage and statutory levies; both are shown.
For comparison, SBI Multi Asset Allocation Fund, which is larger than three of these, returned 14.53% a year over three years and 13.09% over five, with a total expense ratio of 0.68% (base 0.49%) and AUM of ₹20,935 crore.
What the Numbers Tell You
Returns differ widely
Five-year returns range from 10.58% (HDFC) to 19.12% (Quant). These funds hold quite different mixes, so they should not be expected to perform alike.
What a 5-year SIP actually earned
A ₹10,000 monthly SIP started in October 2021 and held to 28 September 2026 earned an annualised return (XIRR) of 18.3% in Quant, 16.1% in Nippon India, 13.0% in ICICI Prudential, 11.3% in Tata and 10.0% in HDFC. That is a respectable range, but not the 19–22% sometimes quoted for the whole category.
Gold has helped a lot
Gold BeES' NAV rose from an average of about ₹41 in 2021 to ₹121.2 on 28 September 2026, nearly three times. Gold itself was around ₹1.5 lakh per 10 grams (24 carat) at the end of September 2026. That run has lifted every fund here. If gold goes sideways, returns will be lower. Don't project the last five years forward.
ICICI Prudential is by far the largest
At ₹87,833 crore it is more than four times the size of the next largest fund checked (SBI, ₹20,935 crore). Sankaran Naren co-manages it with a team of six. Its total expense ratio of 0.84% is lower than Quant's (1.18%) and HDFC's (1.00%).
Costs
Nippon India is the cheapest at 0.47% in total; Quant the dearest at 1.18%. Always choose the Direct plan.
How Far They Fell in 2020
| Fund | Fall, Feb–Mar 2020 |
|---|---|
| Quant Multi Asset Allocation Fund | −32.6% |
| ICICI Prudential Multi Asset Allocation Fund | −30.6% |
| HDFC Multi Asset Allocation Fund | −27.1% |
| SBI Multi Asset Allocation Fund | −17.6% |
| Nifty 50 (UTI Nifty 50 Index Fund) | −38.4% |
Peak-to-trough fall in Direct plan NAV, January–March 2020. Nippon India and Tata's funds had not launched by then. Portfolios have changed since 2020, so a future fall could be larger or smaller.
How Multi Asset Funds Are Taxed
For units sold from 1 April 2025, the tax depends on each fund's actual mix:
- At least 65% in Indian equity: taxed as an equity fund. Gains within 12 months at 20%; after 12 months, 12.5% on gains above ₹1.25 lakh a year.
- More than 65% in debt: slab rate, whatever the holding period. None of these five is close to that.
- In between: 12.5% on gains after 24 months, with no ₹1.25 lakh exemption; slab rate if held 24 months or less.
On the August 2026 portfolios, only ICICI Prudential (66.4% equity) was above 65%. Quant, Nippon India, HDFC and Tata held 53–64% equity, which puts them in the middle band. These equity figures may not capture every derivative position, so check how each fund describes its own tax status in its latest factsheet or scheme information document. Before April 2025, funds in the middle band were taxed like debt funds; that is no longer the case. More in our guide to mutual fund tax in 2026.
How to Compare Multi Asset Funds
- Look at the actual mix. The August 2026 portfolios ranged from 53% to 66% equity. Quant held 53.0% equity, 20.5% debt, 11.4% in fund and ETF units and 15.0% cash; Nippon India also held foreign funds, commodities and REITs.
- Allow for gold you already own. If you hold gold ETFs, sovereign gold bonds or jewellery as an investment, a multi asset fund adds more.
- Check the 2020 fall where the fund existed, not just returns.
- Compare costs like-for-like: base with base, total with total.
- Avoid overlap. A multi asset fund on top of separate equity, debt and gold funds may recreate what you already hold.
Multi Asset vs Balanced Advantage
- Multi asset allocation: spreads across equity, debt and at least one more asset class, often gold.
- Balanced advantage: moves between equity and debt only. Since 2026, SEBI allows these funds to hold only equity and debt instruments, so no gold.
If you want gold exposure without managing it yourself, a multi asset fund includes it. If you only want equity and debt with the mix adjusted for you, a balanced advantage fund does that. Whether one fund should be your whole portfolio depends on your goals; our financial planner can help you set an allocation, and multi asset funds vs a DIY mix compares the two approaches.
This guide explains how to compare these funds. It is not a recommendation to buy any specific fund.
Related fund guides
Run your numbers: if you plan to draw a regular income from a multi asset fund later, the SWP calculator shows how long a corpus lasts at your withdrawal rate. For a one-time investment, try the lumpsum calculator, and use a return well below the last five years', since gold's run lifted every fund here.
