Market Volatility

As Nifty hits six-month lows and its 200-week moving average, multi-asset funds offer safer investment with diversification, steady returns, and reduced risk using systematic investment plans.

Investor Benefits

The built-in diversification helps, and putting in money through a systematic investment plan adds a second layer of protection by removing entry-timing risk.

Recent Flows

In the 12 months to August 2026, multi-asset funds drew about Rs 68,500 crore, ahead of small-cap funds at Rs 62,300 crore and mid-cap funds at Rs 61,000 crore.

Performance Comparison

Over a two-year period, the average SIP returns of multi-asset funds was 8.5% against 7.6% for mid-cap funds and 4% for large-cap funds.

Behavioral Advantage

The real value is behavioural as a multi-asset fund’s swings are smaller than a pure equity fund. Investors are more likely to keep the SIP running through a correction.

“The real value is behavioural as a multi-asset fund’s swings are smaller than a pure equity fund”

Long-Term Strategy

Investors must weigh these funds over the long run rather than on recent performance. A multi-asset fund is designed to steady returns across cycles, not to lead in any single one.