A Multi Asset Fund invests across at least three asset classes — equity, debt, and commodities (gold, silver, REITs) — providing genuine diversification beyond equity-debt hybrids.
SEBI requires multi asset funds to invest a minimum 10% in each of at least three asset classes. Common combinations: equity + debt + gold; equity + debt + REITs/InvITs; or equity + debt + international equities. Each asset class typically behaves differently across economic cycles — gold rises during uncertainty, equity rises during growth, debt provides stability. A multi-asset fund systematically captures these uncorrelated return streams.
A multi-asset fund is a 'one-stop portfolio' that holds stocks for growth, bonds for stability, and gold (or another commodity) for crisis protection — all in one fund. When equity markets crash, gold often rises, cushioning the blow. When growth is strong, equity drives returns. The different assets take turns leading — making the overall portfolio smoother.
Must invest ≥10% each in at least 3 asset classes.
Allocation between asset classes may be fixed or dynamic (managed by the fund).
Taxation depends on equity allocation: if ≥65%, taxed as equity; otherwise as debt.
Gold exposure typically via Gold ETFs (not physical gold).