Before zeroing in on a mutual fund scheme, investors tend to give priority to the ones which have delivered higher past returns against their peers in the same category. Although past returns are not a guarantee of the future returns, they are still seen as one of the key factors that determine a mutual fund scheme’s worthiness.
Here we give the lowdown on some of the top-performing multi-asset allocation funds, particularly the ones which delivered more than 12 percent CAGR (compound annual growth rate) return in the past five years.
However, before we shed light on these two schemes, let us first understand what exactly do these funds entail.
What are multi asset allocation funds?
Multi asset allocation funds are hybrid mutual funds that invest in equity, debt as well as other assets such as gold and real estate. They are meant to maintain a minimum allocation of 10 percent in each of these three categories.
They are considered good for volatile markets when it is considered too risky to place massive bets on the equity alone.
In the past five years, the two mutual fund schemes in this category which gave highest returns are ICICI Prudential Multi Asset Fund and Quant Multi Asset Fund.
|Mutual fund||3-year return||5-year return|
|ICICI Prudential Multi Asset Fund||20.43 %||12.47 %|
|Quant Multi Asset fund||28.59 %||20.16 %|
(Source: AMFI; direct returns as on Feb 1, 2023)
ICICI Prudential Multi Asset Fund: The fund was launched on Oct 31, 2002. It is available in two options of growth and IDCW. The top five constituent assets of the scheme are NTPC, Gold, ICICI Bank, ONGC and Bharti Airtel.
As one can see from the table above, this scheme gave a return of 20.43 percent in the past three years and 12.47 percent in the past five years.
In other words, if someone had invested ₹one lakh in this scheme, it would have grown to ₹1,74,664 in three years and ₹1,79,963 in five years.
Quant Multi Asset Fund: The mutual fund scheme units were first allotted in April 2001. The fund is available in both the options of growth and IDCW.
The key constituent assets of the fund are Nippon India ETF Gold Bees, HDFC Bank, SBI, RIL, Adani Ports, Patanjali Foods, Vedanta and BPCL.
This mutual fund scheme gave a return of 28.59 percent in the past three years and 20.16 percent in the past five years.
In other words, if an investor had invested ₹one lakh, it would have swelled to ₹2,12,628 in three years, and ₹2,50,495 in five years.