What are the benefits of investing in these mutual funds: should you invest?
Investing in a variety of asset types can help reduce risk. This means that the high volatility of an asset class like stocks is offset by exposure to debt and gold.
These funds provide a pre-designed diversified investment portfolio that is managed by a fund manager, eliminating your need to track day-to-day market fluctuations.
The importance of diversifying one’s portfolio across asset classes such as stocks, bonds, gold and other assets cannot be overstated, and the case for doing so has already been made.
Returns for a variety of asset classes, including domestic equities, international equities, gold and, to a lesser extent, debt, vary significantly from year to year. Some years stock returns can be fantastic, but others can be negative.
Multi-asset funds can provide a well-balanced investment portfolio by generating potential rewards while reducing risk exposure.
Best Permanent Multi-Allocation Hybrid Fund
Quant Multi-Asset Fund – Direct Plan-Growth and ICICI Prudential Multi-Asset Fund – The Direct Plan-Growth funds outperformed in terms of 1-year, 2-year, 3-year and 5-year annualized returns compared to the average returns of its category over the same period of time. While the ICICI Prudential Multi-Asset – Direct Plan-Growth fund outperformed over a 2 and 3-year period, and Axis Triple Advantage Fund – Direct Plan-Growth
in 3 years.
Annualized returns
| Mutual fund | 1 year | 2 years | 3 years | 5 years | Since the creation |
|---|---|---|---|---|---|
| Quant Multi Asset Fund – Direct Plan – Growth | 42.53% | 39.82% | 27.92% | 17.97% | 13.26% |
| ICICI Prudential Multi-Asset Fund – Direct Scheme – Growth | 23.05% | 27.73% | 18.74% | 14.02% | 15.75% |
| Axis Triple Advantage Fund – Direct Plan – Growth | 12.36% | 18.58% | 17.89% | 13.47% | 10.66% |
| HDFC Multi-Asset Fund – Direct Regime – Growth | 12.34% | 18.69% | 15.49% | 10.79% | 10.79% |
| Navi 3 in 1 Fund – Plan Direct – Growth | 11.08% | 15.86% | 13.42% | 10.06% | 9.33% |
SIP – Absolute Returns
| Mutual fund | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| Quant Multi Asset Fund – Direct Plan – Growth | 8.93% | 46.26% | 64.40% | 86.62% |
| ICICI Prudential Multi-Asset Fund – Direct Scheme – Growth | 10.21% | 35.16% | 43.11% | 55.02% |
| Axis Triple Advantage Fund – Direct Plan – Growth | 1.19% | 19.69% | 29.67% | 45.53% |
| HDFC Multi-Asset Fund – Direct Regime – Growth | 2.45% | 19.25% | 28.27% | 39.39% |
| Navi 3 in 1 Fund – Plan Direct – Growth | 2.18% | 18.27% | 25.13% | 35.84% |
