3 multi-asset funds delivered over 14% in 1 year; how did the funds with the most investors’ money fare?

Multi-asset allocation funds have delivered widely different returns over the past year, with just three schemes crossing the 14% mark. 360 ONE Multi Asset Allocation Fund led the category with a 19.91% return, followed by Quant Multi Asset Allocation Fund at 16.29% and Kotak Multi Asset Allocation Fund at 14.68%.

The divergence becomes more interesting when returns are compared with the amount of money invested in these schemes. Some of the highest-returning funds have relatively smaller asset bases, while several of the category’s largest schemes delivered more moderate returns. ICICI Prudential Multi Asset Allocation Fund, the largest fund in the data by net assets, returned 3.54% over one year.

Top multi-asset allocation funds by 1-year returns

Three funds delivered more than 14% over the one-year period. 360 ONE Multi Asset Allocation Fund topped the list, while Quant and Kotak were the other two schemes to cross the mark.

DSP Multi Asset Allocation Fund and Mahindra Manulife Multi Asset Allocation Fund both delivered 12.65%, followed by Bandhan Multi Asset Allocation Fund at 12.47%. Invesco India Multi Asset Allocation Fund was next at 11.73%.

How did the other multi-asset funds fare?

The category saw a broad range of returns beyond the top funds. Aditya Birla Sun Life Multi Asset Allocation Fund delivered 11.65%, while HSBC and Nippon India posted 11.54% and 11.50%, respectively.

WhiteOak Capital Multi Asset Allocation Fund returned 11.45%, followed by Bank of India at 11.15%. Mirae Asset, Union and SBI delivered 10.55%, 10.43% and 10.17%, respectively. Canara Robeco was just above the 10% mark at 10.04%.

Several funds delivered between 6% and 10%. Bajaj Finserv returned 9.98%, Axis 9.09%, Franklin India 8.79% and Motilal Oswal Asset Allocation Passive FoF – Conservative 8.20%.

At the lower end, Shriram returned 7.31%, Tata 6.84%, LIC MF 6.63%, Edelweiss 6.59%, Baroda BNP Paribas 6.44% and Sundaram 6.25%.

Samco Multi Asset Allocation Fund returned 5.35%, while ICICI Prudential Multi Asset Allocation Fund, UTI, HDFC and Quantum posted 3.54%, 3.19%, 2.51% and 1.33%, respectively.

How did the funds with most investors’ money fare?

Looking at net assets gives a different picture from the one-year return ranking. ICICI Prudential Multi Asset Allocation Fund had the largest net assets at ₹87,833 crore. However, its one-year return was 3.54%.

SBI Multi Asset Allocation Fund was the second-largest fund in the category, with ₹20,935 crore in net assets and a 10.17% return. Nippon India Multi Asset Allocation Fund had ₹17,984 crore and delivered 11.50%, while Kotak’s ₹15,283 crore scheme returned 14.68%.

DSP Multi Asset Allocation Fund had ₹10,990 crore in net assets and returned 12.65%.

For investors, therefore, a one-year return should be viewed alongside the fund’s asset allocation, portfolio strategy, risk level and longer-term track record. The latest performance data is useful for comparison, but it does not by itself indicate which fund may perform better in the future.