Invest for a diversified portfolio, tax-efficient and dynamic rebalancing

Multi-asset allocation funds (MAAFs) have risen considerably in performance rankings as well as investor mindshare.

- SARBAJEET K SEN

Over the past year, these schemes have delivered an average return of 12. 8 percent, sharply outperforming the 2. 9 per cent generated by flex-icap funds over the same period.The MAAF category has also attracted substantial inflows of %28,294 crore so far in FY2026, compared to 34,785 crore in FY2025, reflecting heightened investor interest.

“Investor interest in MAAFs has risen because they offer a structured way to diversify across equities, debt, commodities, and in some cases, even international assets, within a single product. In an environment where asset class leadership keeps rotating, MAAFs provide a less volatile journey,” says Chintan Haria, principal - investment strategy, ICICI Prudential Asset Management Company (AMC).

New fund offers (NFOs) of Axis Multi-Asset Active Fund of Fund (FOF), PGIM India Multi Asset Allocation Fund and The Wealth Company Multi Asset Allocation Fund are currently open for subscription. These schemes can be particularly useful for individuals who desire broad-based exposure across asset classes but may not have the expertise or access to professional guidance required to determine the optimal allocation mix on their own.

Diversify across asset classes