Know More About the Two Multi-Asset Allocation Funds That Gave Over 12% Return in the Past 5 Years

Date : 01/03/2023
Read: 3 mins

A look at two of the best-performing multi-asset allocation mutual funds

Mutual fund investment is the ideal way of participating in the market in a regular and professional manner. Now and then, successful mutual fund schemes come into the spotlight and catch the attention of investors. The success of a fund scheme till now is in no way an assurance of its good performance in the future. Nevertheless, if a scheme has performed well over the years, it is worth having a look from an investment perspective.

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Multi-asset Allocation Scheme

We look at a couple of multi-asset mutual fund schemes that have delivered a compounded annual growth rate of over 12% in the last five years. Multi-asset allocation schemes invest in equities, debts and other assets like gold and real estate. The scheme maintains a minimum investment of 10% in each of these three asset categories. For an investor, a multi-asset allocation scheme is suitable for diversifying their asset exposure and mitigating the risk of volatility usually associated with equity investments.

Successful Multi-asset Allocation Schemes

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Quant multi-asset fund - Quant multi-asset fund has a 63.43% investment in equities, 8.27% in debts and 6.62% in government securities. The scheme has an expense ratio of 2.31% and a fund size of Rs 603 crores. This scheme has been in operation since April 2001 and offers both growth and IDCW options. Major investment by this scheme includes Nippon Goldbees ETF, HDFC Bank, Reliance Industries, State Bank of India, Adani Ports, Vedanta and Patanjali.

The initial minimum investment in this fund scheme is Rs 5,000 and additional lumpsum investments can be made for Rs 1,000 and above. SIP investment can be made with a minimum amount of Rs 1,000.

ICICI Prudential multi-asset fund - ICICI Prudential multi-asset fund was launched in October 2002 and is available in both growth and IDCW options. Major investments by this scheme include NTPC, ONGC, ICICI Bank, Airtel and Reliance Industries. The expense ratio of the scheme is 1.83% and has a fund size of Rs 16,185 crores.

The minimum first time-one time investment in this scheme is Rs 5,000, while additional investments can be made for Rs 1,000 or above. The minimum SIP amount is Rs 100 only.

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Past performances are in no way an assurance of future success in mutual fund schemes. However, it does depict that these are well-managed schemes that have performed consistently in the 1-to-10-year period and can be used as a yardstick while investing.