Investor interest in multi-asset allocation funds is rising sharply, with AMFI data showing net inflows of ₹5,344.19 crore in October 2025, up 7.27% from September. The category’s total AUM has reached ₹1,51,071 crore, reflecting growing confidence among retail investors seeking stability amid market volatility.
Multi-asset funds invest in equity, debt, and commodities such as gold and silver, ensuring diversification within a single scheme. By regulation, they must allocate at least 10% to each of three asset classes. A major driver of renewed interest is the exceptional rally in bullion, with gold and silver delivering over 50% returns in 2025, making them attractive hedging options alongside equities.
Experts say the current environment—marked by global tensions, inflation concerns, and equity market weakness—makes these funds a compelling choice. Navy Vijay Ramavat of Indira Securities noted that while equities struggled, debt provided stability and commodities surged, making multi-asset funds suitable for investors seeking steady, balanced returns with lower risk.
Kotak Mutual Fund managers Devender Singhal and Abhishek Bisen also highlighted benefits like risk management, gold as an inflation hedge, and dynamic asset allocation, enabling fund managers to shift weights based on market conditions.
