Mutual fund investors bet on multi assets to beat equity market volatility

In the multi-asset category, Nippon MF and ICICI MF have delivered the highest annualised return of 22% and 20% in the last three years, while others have registered between 13-20% return
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Given the growing uncertainty across global markets on the back of trade tariffs and geopolitical tensions, mutual fund investors are finding solace in investing in multi asset and dynamic allocation funds.

Inflows into hybrid multi-asset allocation funds have increased 37 per cent in the June quarter to ₹8,243 crore, as against ₹6,022 crore logged in the March quarter.

Similarly, fund inflows increased to ₹6,197 crore and ₹3,528 crore in July and August.

Dynamic asset allocation investments also jumped to ₹3,903 crore in the June quarter, against ₹2,953 crore in the March quarter. Investments surged further to ₹2,611 crore and ₹2,316 crore in July and August.

Multi-asset allocation funds have exposure largely to equity, debt, gold and silver, while dynamic asset allocation switches exposure between equity and debt depending on market valuation.

The assets under management of multi-asset funds has increased 27 per cent in August to ₹1.32 lakh crore, against ₹1.04 lakh crore on the back of a sharp rally in gold and silver prices.

The AUM of dynamic asset allocation funds jumped seven per cent to ₹3.04 lakh crore, against ₹2.83 lakh crore.

In the multi-asset category, Nippon MF and ICICI MF have delivered the highest annualised return of 22 per cent and 20 per cent in the last three years, while others have registered between 13-20 per cent return.

In dynamic asset allocation, HDFC MF and Franklin Templeton have delivered 20 per cent and 15 per cent returns, while the industry’s AUM has increased to ₹3.05 lakh crore (₹2.83 lakh crore).

DD Sharma, MD, MF King, said the presence of precious metals can act as both a hedge and a tactical opportunity amid heightened volatility and persistent inflation concerns.

Hybrid funds offer investors a structured way to stay invested without making asset-specific timing decisions as global market cycles remain unpredictable, he added.

Published on September 19, 2025