Top 5 multi-asset allocation funds to invest in 2024

In today’s dynamic market environment, where volatility reigns and economic uncertainty lingers, diversification becomes paramount for investors.

Enter Multi-asset allocating funds, a compelling option for those seeking a balanced approach. But with a multitude of funds available, choosing the right one can be daunting.

This article unveils the top 5 multi-asset allocation funds to invest in 2024, helping you navigate the market with confidence. We’ll delve into each Investment fund’s key features, performance history, and suitability for different risk profiles. Whether you’re a seasoned investor or just starting your journey, this guide empowers you to make informed decisions and invest in a diversified future.

What are Multi-Asset Allocation Funds?

Multi-asset allocation funds, also known as balanced advantage funds, function as a one-stop shop for investors seeking a diversified portfolio. Fund managers strategically allocate their investment across various asset classes based on the fund’s investment objective. These objectives can range from conservative (prioritizing capital preservation) to aggressive (focusing on capital appreciation).

Here’s a breakdown of the benefits of multi-asset allocation funds:

• Diversification: The cornerstone of these funds is diversification. By spreading your investment across asset classes, you’re not putting all your eggs in one basket. When one asset class experiences a downturn, others might perform well, potentially offsetting losses.
• Professional Management: Fund managers actively manage the asset allocation, adjusting it based on market conditions and the fund’s objective. This saves you the time and effort required for in-depth research and portfolio management.
• Convenience: Multi-asset allocation funds offer a convenient way to achieve diversification with a single investment. You don’t need to research and invest in individual stocks or bonds.
• Potentially Lower Risk: Diversification can help reduce overall portfolio risk compared to a portfolio concentrated in a single asset class.

Top 5 Multi-Asset Allocation Funds to Consider in 2024

Quant Multi Asset Fund :

Quant Mutual Fund has established itself as a prominent player in the Indian mutual fund industry. While the Quant Multi Asset Fund has garnered recent attention for its impressive performance, Quant offers a wider range of investment options catering to various investor profiles. Let’s delve deeper into Quant’s offerings and explore some key considerations beyond the Quant Multi Asset Fund.

Quant Multi Asset Fund: The Quant Multi Asset Fund Direct Growth has indeed emerged as a frontrunner in the multi-asset allocation space. Here’s a summary of its main attributes:

• Impressive Year-to-Date Return: As of March 14, 2024, it boasts an approximate return of 11.12%, making it a standout performer in 2024 (remember to consult reliable sources for the latest data).
• Net Asset Value (NAV): The Net Asset Value (NAV) of Quant Multi Asset Fund is ₹121.2697 as of 13-Mar-2024.
• Established Track Record: Launched in January 2013, the Quant Multi Asset Fund has delivered a consistent average annual return of 44.75%.
• Healthy Asset Base: With Assets Under Management (AUM) of ₹1,676.99 Cr as of March 13, 2024, the fund signifies investor confidence.
• Competitive Expense Ratio: The Quant Multi Asset Fund Direct Plan’s expense ratio of 0.76% (as of February 29, 2024) is lower compared to similar funds. This translates to potentially higher returns for investors in the long run.

Exploring Quant’s Diverse Product Portfolio: While the Quant Multi Asset Fund is a compelling option, Quant Mutual Fund offers a broader spectrum of investment choices to cater to different risk appetites and investment goals. Here’s a glimpse into some of their other offerings:

• Quant Small Cap Fund Direct-Growth: This fund focuses on investing in stocks of smaller companies with high growth potential. It’s suitable for investors with a higher risk tolerance seeking capital appreciation over the long term.
• Quant Momentum Fund: This fund could potentially target stocks exhibiting strong upward momentum. Momentum investing carries inherent risks, so ensure it aligns with your risk tolerance.
• Quant Manufacturing Fund: This fund might invest in companies within the manufacturing sector. Sectoral funds can be more volatile than diversified options, so understand the associated risks before investing.

SBI Multi Asset Allocation Fund :

SBI Mutual Fund, a household name in the Indian financial landscape, offers a diverse range of investment options. While the SBI Multi Asset Allocation Fund is a popular choice for balanced investors, SBI Mutual Fund caters to a wider spectrum of risk profiles. Let’s delve deeper into the SBI Multi Asset Allocation Fund and explore some additional options you might consider.

SBI Multi Asset Allocation Fund: The SBI Multi Asset Allocation Fund has established itself as a reliable option for investors seeking stability. Here’s a closer look at its key features:

• Consistent Returns: As of March 13, 2024, it delivers a return of around 1.96%. While not the highest performer, it offers a degree of stability.
• Strong Track Record: The fund boasts an impressive average annual return of 28.84% since its inception. This long-term track record demonstrates its ability to generate consistent returns.
• Competitive Expense Ratio: With an expense ratio of 0.61% (as of March 13, 2024), the SBI Multi Asset Allocation Fund offers a competitive fee structure, potentially benefiting long-term investors.
• Healthy Asset Base: The fund’s Assets Under Management (AUM) of ₹3,879.13 Cr (as of March 13, 2024) signifies investor confidence in its balanced approach.
• Net Asset Value (NAV): The Net Asset Value (NAV) of SBI Multi Asset Allocation Fund is ₹54.58 as of 12 Mar 2024.

Exploring SBI Mutual Fund’s Diverse Portfolio

While the SBI Multi Asset Allocation Fund caters to risk-averse investors, SBI Mutual Fund offers a wider range of investment options. Here’s a glimpse into some of their other offerings:

• SBI Balanced Advantage Fund: This fund employs a dynamic asset allocation strategy, adjusting its exposure to equities and debt based on market conditions. It can be a suitable option for investors seeking a balance between growth and stability, potentially offering higher returns compared to the Multi-Asset Allocation Fund but with slightly more risk.
• SBI Energy Opportunities Fund: This fund, if launched, could potentially focus on the energy sector. Sectoral funds can be more volatile than diversified options, so ensure they align with your risk tolerance and investment goals.

UTI Multi Asset Allocation Fund :

UTI Mutual Fund, a trusted name in the Indian mutual fund industry, offers a variety of investment solutions. The UTI Multi Asset Fund is a popular choice for investors seeking a balance between growth and stability. However, UTI Mutual Fund caters to a wider range of risk profiles. Let’s delve deeper into the UTI Multi Asset Allocation Fund and explore some additional options you might consider, particularly those focusing on mid and small-cap companies.

UTI Multi Asset Allocation Fund: The UTI Multi Asset Allocation Fund has established itself as a well-regarded option for investors with a moderate risk tolerance. Here’s a breakdown of its key features:

• Year-to-Date Performance: As of March 14, 2024, it delivers a return of approximately 5.66%. While not the most aggressive performer, it provides a balance between growth and stability.
• Strong Track Record: Launched in January 2013, the fund boasts an impressive average annual return of 40.28% since inception. This long-term track record demonstrates its ability to generate consistent returns.
• Expense Ratio: With an expense ratio of 1.12% (as of March 13, 2024), the UTI Multi Asset Allocation Fund’s fees are higher than some competitors. Consider this cost factor when making your decision.
• Healthy Asset Base: The fund’s Assets Under Management (AUM) of ₹1,277.99 Cr (as of March 13, 2024) signifies investor confidence in its balanced approach.
• Net Asset Value (NAV): The Net Asset Value (NAV) of Multi Asset Allocation Fund IS ₹69.72 as of 12 Mar 2024

Exploring UTI Mutual Fund’s Diverse Portfolio: UTI Mutual Fund offers a wider range of investment options for those seeking exposure to specific market segments. Here’s a glimpse into some of their offerings beyond the Multi-Asset Allocation Fund:

• UTI Small Cap Fund: This fund focuses on investing in stocks of smaller companies with high growth potential. Small-cap companies can offer the potential for higher returns but also carry greater risk. Ensure this aligns with your risk tolerance and investment goals before investing. (Research Tip: Explore the fund’s portfolio composition to understand the specific types of small-cap companies it invests in).
• Mid-Cap Funds: UTI Mutual Fund might offer other funds that invest in mid-cap companies. Mid-cap companies can offer a balance between the growth potential of small caps and the relative stability of large caps. Conduct your research to see if UTI Mutual Fund offers a mid-cap fund that aligns with your investment goals.

ICICI Prudential’s Multi-Asset Fund

ICICI Prudential Mutual Fund Direct-Growth, a prominent player in the Indian financial landscape, offers a range of multi-asset allocation funds catering to various risk profiles. Let’s delve deeper into the Multi Asset Fund ICICI and its growth options, exploring their features and how they might fit into your investment strategy. We’ll also clarify the relationship between ICICI Prudential and ICICI Bank.

ICICI Prudential Multi-Asset Fund: The ICICI Prudential Multi-Asset Fund growth prioritizes capital preservation by adopting a more conservative asset allocation strategy. Here’s a closer look:

• Moderate Returns: As of March 13, 2024, it delivers a return of around 4.42%. While not the highest performer, it offers stability for investors seeking capital protection.
• Strong Track Record: Launched in January 2013, the fund boasts an average annual return of 32.34% since inception. This long-term track record demonstrates its ability to generate consistent returns within its conservative approach.
• Competitive Expense Ratio: With an expense ratio of 0.67% (as of March 13, 2024), the ICICI Multi Asset Fund growth offers a competitive fee structure, potentially benefiting long-term investors.
• Large Asset Base: The fund’s Assets Under Management (AUM) of ₹34,644.31 Cr (as of March 13, 2024) signifies investor confidence in its conservative approach.
• Net Asset Value (NAV): The Net Asset Value (NAV) of ICICI Multi Asset Fund NAV is ₹684.54 as of 12 Mar 2024. Investors can opt for either SIP calculator or Lumpsum based on their investment objective and risk tolerance

ICICI Prudential vs. ICICI Bank: Understanding the Connection

It’s important to clarify that ICICI Prudential Mutual Fund is a separate entity from ICICI Bank. While they share the “ICICI” brand name, they operate independently. ICICI Prudential is a life insurance and asset management company, while ICICI Bank is a leading commercial bank.

Additional Investment Options from ICICI Prudential Mutual Fund

ICICI Prudential Mutual Fund offers a wider range of investment options beyond the conservative Multi-Asset Fund. Here’s an example:

• ICICI Prudential Equity & Debt Fund: This fund might invest in a blend of equities and debt instruments, potentially offering a balance between growth and stability. It could be a suitable option for investors with a moderate risk tolerance seeking some growth potential alongside capital preservation.

HDFC Multi Asset Fund :

HDFC Mutual Fund offers a variety of investment solutions, including multi-asset allocation funds that cater to different risk profiles. Let’s delve deeper into the HDFC Multi Asset Fund and explore some additional options you might consider, including the HDFC Balanced Advantage Fund growth.

HDFC Multi Asset Allocation Fund: The HDFC Multi Asset Fund’s direct growth offers a balance between growth potential and risk mitigation. Here’s an analysis of its main features

• Moderate Returns: As of March 13, 2024, it delivers a return of approximately 3.09%. While not the most aggressive performer, it provides a balance between growth and stability.
• Strong Track Record: Launched in January 2013, the fund boasts an average annual return of 24.95% since inception.
• Competitive Expense Ratio: With an expense ratio of 0.86% (as of March 13, 2024), the HDFC Multi Asset Allocation Fund offers a competitive fee structure, potentially benefiting long-term investors.
• Healthy Asset Base: The fund’s Assets Under Management (AUM) of ₹2,526.98 Cr (as of March 13, 2024) signifies investor confidence in its balanced approach.
• Net Asset Value (NAV): The Net Asset Value (NAV) of HDFC Multi Asset Fund is ₹67.21 as of 12 Mar 2024. Investors can choose between SIP calculator or Lumpsum based on their investment objective and risk tolerance

Exploring HDFC Mutual Fund’s Diverse Portfolio

HDFC Mutual Fund offers a wider range of investment options beyond the Multi-Asset Allocation Fund. Here’s a glimpse into some of their offerings:

• HDFC Balanced Advantage Fund: This fund employs a dynamic asset allocation strategy, adjusting its exposure to equities and debt based on market conditions. It can be a suitable option for investors seeking a balance between growth and stability, potentially offering higher returns compared to the Multi-Asset Allocation Fund but with slightly more risk. Consider the HDFC Balanced Advantage Fund Direct-Growth option for a lower expense ratio.
• Other Equity Funds: HDFC Mutual Fund offers various equity funds focusing on different market segments, such as the HDFC Midcap Opportunities Fund, or broader market exposure like the HDFC Top 100 Fund. Research these options to see if they align with your investment goals and risk tolerance.

Beyond the Top 5

This list isn’t exhaustive. Several other multi-asset allocation funds deserve your consideration, including:

• Kotak Multi Asset Allocation Fund
• Nippon India Multi-Asset Fund
• Sundaram Multi Asset Allocation Fund
• Mirae Asset Multi Asset Allocation Fund(launched recently in 2024)

Important Considerations Before Investing

Here are some key factors to keep in mind before investing in any multi-asset allocation fund:

• Investment Objective: Are you seeking capital appreciation, income generation, or a balance of both? Choose a fund that aligns with your goals.
• Risk Tolerance: How much risk are you willing to accept? Top of Form Multi-asset allocation funds generally offer lower risk than pure equity funds, but there’s still inherent risk involved.
• Investment Horizon: What is your intended duration for holding the investment? The fund’s investment strategy should align with your time frame.
• Fund Expense Ratio: Lower expense ratios generally translate to higher returns for you.
• Past Performance: While not a guarantee of future results, past performance can offer some insight into the fund’s management style and consistency.

Conclusion

Multi-asset allocation funds offer a compelling solution for investors seeking a balanced and diversified approach to navigate the ever-changing market landscape. By carefully considering your risk tolerance, investment goals, and time horizon, you can select a fund that aligns with your financial objectives. Remember, thorough research, professional guidance, and a long-term perspective are paramount for successful investing in multi-asset allocation funds or any investment vehicle.