Multi-asset funds march to the hybrid throne; gold their banner

Inflows signal a changing guard from BAFs, though analysts caution investors against recency bias

The prolonged rally in gold and silver amid turbulence in the equity market has allowed multi-asset allocation funds (MAAFs) to outshine other hybrid mutual fund (MF) offerings in terms of returns and cement their position as the ‘one-stop’ or ‘all-weather’ MF schemes.

 

The inflow pattern over the past two years suggests a shift in investor preference away from the largest hybrid category, balanced advantage funds (BAFs), and towards MAAFs.

 

The multi-asset offerings, which have led almost all key MF scheme segments in near-term returns for some time, have recorded higher inflows than