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Multi-asset allocation funds outshine equity schemes over 3-year period

Clock 19.1% annualised return in the period compared to flexicap's 18.2%

mutual funds
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Growing investor preference for MAAFs is evident: high equity valuations and global uncertainties have bolstered their appeal, making them among the most-recommended categories over the last two to three years.

Abhishek Kumar Mumbai
Multi-asset allocation funds (MAAFs) have emerged as strong performers among mutual funds (MFs), rivalling medium-term returns from traditional equity categories while maintaining a lower risk profile. Over the past three years, average returns for this segment have surpassed those of flexicap and largecap funds, for both lump sum and systematic investment plan (SIP) investments.
 
According to Value Research, the average annualised three-year return for multi-asset funds stands at 19.1 per cent, outperforming flexicap funds at 18.2 per cent and largecap funds at 16.8 per cent, a trend confirmed by available market data. SIP returns also