Are multi-asset allocation funds the best way to diversify over equity, debt and gold? All you need to know

Investment in equities is undoubtedly risky, which makes stocks -of -the -funds a less suitable option for conservative investors. Those who seek the growth potential of stocks while keeping risk lower by investing in safer asset classes, such as debt, can consider hybrid mutual funds. There are different subcategories of hybrid subject funds, including conservative hybrid funds, balanced hybrid funds, dynamic asset -allocation funds, arbitrage funds, stock saving funds and others. One category of mutual fund that offers exposure to almost all asset classes equity, debt and commodities such as gold- is the Multi-Assat Awards Fund. Here we give a low point on this Mutual Fund category: What is multi-asset allocation funds? For those who are unaware, multi-asset allocation funds refer to mutual funds that invest in at least three asset classes with a minimum grant of at least 10% in each asset class. There are approximately 30 schemes in this category (as opposed to 35 in the dynamic asset allocation funds) with total assets under management (AUM) amounting to £ 1,32 lakh crore than on August 31, 2025. There was a net inflow of £ 3.527 crore in this schemes alone, which shows the popularity of these schemes. Why should you invest? One of the main reasons to invest in these schemes is that it provides exposure to multiple asset classes, including equity, debt and gold. Although gold prices have reached highs all times, these mutual funds – except Gold ETF funds – enable investors to utilize the best from this rally. Some popular multi-asset allocation mutual funds include Aditya Birla Sun Life Multi BAT Awards Fund, Axis Multi Asset Atlocation Fund, HDFC Multi Asset Fund, ICICI Prudential Multi Bates Fund, Mirae Bates Multi Association Funds. Meanwhile, if you only want to invest in multi-asset funds to get exposure to one of the three asset classes, it is recommended that you invest in an asset-specific category, a Gold ETF Mutual Fund, a debt fund or a stock-based fund. ‘Rather than investing in one hybrid intercourse fund, one has to invest strategically in asset classes based on one’s own risk appetite. It would be better in the long run. After all, different asset classes perform in different periods. Golden and fairness is also usually not parallel, ‘says Sridharan S., Sebi-registered investment adviser and founder of the wealth-ladel. Note: This story is for information purposes only. Please talk to a SEBI registered investment adviser before making any investment-related decision. Visit here for all updates for personal finance