Multi-asset funds are rapidly emerging as one of the most favoured entry points for new and cautious investors, thanks to their ability to offer instant diversification without the complexity of choosing between equities, debt or gold. According to R. Sivakumar, Head of Corporate Strategy at Axis Mutual Fund, these schemes provide beginners with a sense of comfort by reducing volatility and spreading risk across multiple asset classes. For many first-time savers, multi-asset funds act as a ready-made portfolio that eliminates the anxiety of market timing or stock selection.
Industry trends support this growing preference. Multi-asset allocation schemes have consistently recorded monthly inflows of Rs 5,000–6,000 crore even as interest in mid-cap and small-cap categories has moderated after a period of sharp rallies. Sivakumar explained to CNBC-TV18 that investors are now recognising that asset allocation — rather than chasing individual stocks or themes — is the key driver of long-term returns. The built-in structure of these funds, which mandates exposure to equity, fixed income, and gold, allows them to capture growth while cushioning downside risks. As a result, they often deliver equity-like returns but with noticeably lower volatility.
The category has also received a boost from evolving tax rules. With the removal of indexation benefits for traditional debt funds, many investors have begun shifting towards multi-asset schemes for better post-tax efficiency. For new investors who want a balanced starting point, multi-asset funds offer the advantage of professional management, periodic rebalancing, and disciplined asset allocation — all within a single product.
Three NFOs currently open for subscription
Axis Multi-Asset Active FoF
Axis Mutual Fund’s latest offering — the Axis Multi-Asset Active Fund of Funds — aims to combine equity, fixed income, gold and silver within one dynamically managed portfolio. The NFO is open from November 21 to December 5, with a low minimum investment of Rs 100. The fund uses a blend of quantitative indicators (valuations, macro data, commodity cycles) and qualitative assessments (sentiment, geopolitical trends) to rebalance the portfolio. As a FoF, it offers broad access to underlying schemes along with the benefit of tax-efficient rebalancing. MD & CEO B. Gopkumar said the goal is to help retail investors navigate market cycles more easily, while CIO Ashish Gupta emphasised that disciplined asset allocation lies at the core of long-term wealth creation.
Wealth Company Multi Asset Allocation Fund
Part of the Pantomath Group, The Wealth Company Mutual Fund has launched its Multi Asset Allocation Fund, open until December 3 and set to reopen for continuous transactions on December 12. The scheme invests actively across equity, debt, commodity ETFs and commodity derivatives. The AMC highlights that true diversification requires a balanced allocation where commodities are treated on par with equity and fixed income, helping investors benefit from the stability of debt, the inflation-hedging qualities of commodities and the long-term returns of equities. The structure offers the flexibility to dynamically adjust allocations based on market conditions while remaining within a favourable tax regime. The fund house says it combines traditional Indian preferences — such as gold — with disciplined, modern portfolio construction.
PGIM India Multi Asset Allocation Fund
PGIM India Mutual Fund’s new multi-asset scheme invests across equities, debt, money markets and Gold/Silver ETFs. Available at Rs 10 during the NFO, the fund maintains at least 65% gross equity exposure to qualify for equity-oriented taxation. It permits derivatives usage of up to 50% of net assets and allows investors to transact on all business days, with T+3 credit for redemptions. SIP, STP, SWP and top-up options are available. Its benchmark blends the Nifty 500 TRI, CRISIL Short Term Bond Index and domestic gold and silver prices, reflecting its hybrid asset allocation strategy. Targeted at long-term investors seeking diversified growth, the scheme offers flexibility with moderate entry points and a disciplined allocation framework.
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