Multi-asset funds: Invest for diversified portfolio, tax-smart rebalancing

Multi-asset allocation funds offer diversification across equities, debt and commodities with tax-efficient rebalancing, but they can lag pure equity funds during strong bull markets, experts say

Multi-asset allocation funds (MAAF) have risen considerably in performance rankings as well as investor mindshare. Over the past year, these schemes have delivered an average return of 12.8 per cent, sharply outperforming the 2.9 per cent generated by flexicap funds over the same period. The MAAF category has also attracted substantial inflows of about Rs 28,294 crore so far in FY2026, compared to about Rs 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