scorecardresearchMutual Fund Investing: These multi asset allocation funds gave more than 12 percent return in past five years

Mutual Fund Investing: These multi asset allocation funds gave more than 12 percent return in past five years

Updated: 28 Jul 2022, 07:48 PM IST
TL;DR.
Top three fund schemes in this category gave a return of anywhere between 9 percent to 17 percent in past five years
Multi asset allocation funds invest in at least three asset classes with a minimum allocation of 10 percent each in all three asset classes

Multi asset allocation funds invest in at least three asset classes with a minimum allocation of 10 percent each in all three asset classes

Evaluating a mutual fund’s performance requires most investors to assess the returns of the fund scheme in the past few years. Although a number of factors are considered before investors take a final call on investment decision such as the fund category, fund house's credibility; the recent and past returns given by the fund also go into evaluating the scheme’s performance.

Here we assess the returns of multi asset allocation funds in the past three and five years.

But before that, let us find out what are multi-asset allocation fund.

Multi asset allocation funds

These mutual funds invest in a minimum of three asset classes with a minimum allocation of at least 10 percent each in all three asset classes. These funds usually have a mix of debt, equity and one more asset class such as gold and real estate, etc.

Five-year returns

ICICI Prudential Multi Asset Fund gave a return of 12.84 percent in the past five years. And as we can see in the table below, Quant Multi Asset Fund gave a return of 17.31 percent and SBI Multi Asset Allocation Fund gave a return of 9.03 percent.

Fund schemes                                           5-year-returns (%)
Quant Multi Asset Fund                          17.31
ICICI Prudential Multi Asset Fund                12.84
SBI Multi Asset Allocation Fund                   9.03

(Source: AMFI data; direct returns as on July 15, 2022)

 

Three-year returns

Although some of the mutual funds gave returns in the single or lower double digits such as UTI Multi Asset Fund gave 8 percent return, and SBI Multi Asset Allocation Fund gave 10.73 percent return.

Here we give a snapshot of some of the top-performing funds. As shown in the table below, Quant Multi Asset Fund delivered 27.42 percent return and ICICI Prudential’s Multi Asset Fund gave 16.92 percent return.

Fund Scheme                                            3-year-return (%)
Quant Multi Asset Fund                               27.42
ICICI Prudential Multi Asset Fund               16.92
HDFC Multi Asset Fund                             14.14

(Source: AMFI data; direct returns as on July 15, 2022)

 

Here we give a snapshot of the top performing multi asset advantage fund i.e., Quant Multi Asset Fund.

Quant Multi Asset Fund: This mutual fund scheme was launched in April 2001. It has equity allocation of 74.25 percent, ETF allocation of 15.28 percent and allocation to government securities of 9.64 percent, and the remaining in cash and other receivables.

The scheme has given an overall return of 9.89 percent since inception. This means if an investor had invested a sum of 10,000 at the time of opening of the scheme, it would have swelled to 74,045 now.

The top stock holdings of the fund include Ruchi Soya Industries, SBI, ICICI Bank, Bharti Airtel, Adani Ports and SEZ, IRB Infra, Ambuja Cements, RIL among others.

The fund has an AUM of 308.55 crore.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision. 

First Published: 28 Jul 2022, 12:46 PM IST