Multi-Asset Allocation Mutual Funds: A Comprehensive Guide

Discover the advantages, key considerations, and strategies to make informed decisions for a diversified and well-rounded investment portfolio.
Multi-Asset Allocation Funds
4 mins
11 January 2024

Investing in mutual funds is a great way to grow your wealth over time. Mutual fund is a type of investment vehicle that pools money from multiple investors to purchase securities such as stocks, bonds, and other assets. The fund is managed by a professional money manager who allocates the fund’s assets in equity market or debt instruments, depending on the type of fund they are & try to provide capital gains. Mutual funds are typically operated by investment companies or asset management companies (AMCs).

However, with so many different types of mutual funds available, it can be challenging to decide which one is right for you. One type of mutual fund that has gained popularity in recent years is multi-asset allocation mutual funds.

In this comprehensive guide, we will explore multi-asset allocation mutual funds, examining their unique characteristics and the advantages they offer to investors. Additionally, we will navigate the process of investing in these funds.

What are Hybrid Mutual Funds?

Hybrid funds are a type of mutual fund that invests in a mix of asset classes, typically combining both equity and debt instruments. These funds aim to provide investors with diversification benefits by spreading their investments across different types of securities. The allocation between equity and debt is actively managed by fund managers based on market conditions and the fund's objectives.

What are Multi-Asset Allocation Mutual Funds?

Multi-asset allocation mutual funds are hybrid funds that must invest a minimum of 10% in at least three different asset classes. These funds typically have a combination of equity, debt, and one more asset class like gold, real estate, etc. The primary objective of these funds is to provide investors with a diversified portfolio that can help reduce risk and improve returns.

Benefits of investing in Multi-Asset allocation mutual funds

There are several benefits of investing in multi-asset allocation mutual funds, including:

  1. Diversification
    Multi-asset allocation mutual funds invest in a minimum of three asset classes, which helps diversify your portfolio and reduce overall risk. Investing in a diversified portfolio can help you achieve your financial goals while minimising risk.
  2. Stable returns
    These funds offer may stable returns as they invest in a combination of equity, debt, and other asset classes. These funds are suitable for investors who are looking to take lower risks.
  3. Professional management
    Multi-asset allocation mutual funds are managed by professional fund managers who have expertise in managing different asset classes. These fund managers use their knowledge and experience to make informed investment decisions that can help maximise returns and minimise risk.

How to invest in multi-asset allocation mutual funds on Bajaj Finserv platform

  1. Go to Bajaj Finserv "Mutual Funds Listing" page.
  2. Filter funds by type, risk, returns, or select from top performers.
  3. View listed funds with investment details and ratings.
  4. Sign in with your mobile number, verify via OTP.
  5. Confirm your information by providing PAN and date of birth. If KYC is incomplete, upload address proof and record a video.
  6. Upload signature, provide additional info.
  7. Choose the mutual fund you want to invest in.
  8. Opt for SIP or lumpsum, enter the amount, click 'Invest Now.'
  9. Select a payment mode
  10. After payment, your investment is complete.


In conclusion, understanding various investment options is crucial. Multi-asset allocation mutual funds, combining equity, debt, and other assets, seek to generate capital appreciation by lowering risk by diversification across asset classes. With professional management, they provide a strategic choice for long-term financial success.

If you are interested in investing in multi-asset allocation mutual funds, Bajaj Finserv offers a wide range of funds to choose from.