Best multi-asset fund: The only scheme to deliver 20%+ annualised returns over the long term

Among all multi-asset allocation funds, only one scheme has managed to not only generate over 20% annualised returns across the 1-year, 3-year, 5-year, and 7-year periods but has also outperformed its category average returns. 

A multi-asset allocation fund is a kind of hybrid mutual fund that aims to provide diversification and better risk-adjusted returns by investing in at least three different asset classes, usually debt, equity, and commodities like gold, with a minimum allocation of 10% to each of these asset classes. 

Here’s a closer look at the fund.

Quant Multi Asset Allocation Fund Returns

The fund has delivered strong outperformance across almost every investment horizon, significantly beating the average returns of the multi-asset allocation category. 

The fund’s long-term track record is particularly impressive. It has delivered an annualised return of 25.01% over 3 years, compared with the category average of 17.12%. Over 5 years, it generated 20.55%, significantly ahead of the category’s 14.49%. 

The outperformance continues over longer periods, with 25.47% annualised returns over 7 years against the category average of 16.05%, and 19.20% over 10 years, compared with 12.23% for the category.

The investment amount would have increased to Rs 1,20,370 in a year, Rs 1,95,359 in three years, Rs 2,54,587 in five years, Rs 4,89,530 in seven years, and Rs 5,79,112 in ten years if an investor had made a lump sum investment of Rs 1 lakh in the fund.  

Quant Multi Asset Allocation Fund SIP Returns

The fund has consistently rewarded disciplined SIP investors by generating returns well above both its benchmark and the Nifty across 1-year, 3-year, 5-year, and 7-year periods. 

Quant Multi Asset Allocation Fund – Direct Plan

Since its launch on January 1, 2013, this hybrid mutual fund scheme has produced a compound annual growth rate (CAGR) of 16.06%. 

Sandeep Tandon, Ankit A. Pande, Sanjeev Sharma, Varun Pattani, Sameer Kate, Ayusha Kumbhat, and Yug Tibrewal are now in charge of managing the fund. 

As of May 31, 2026, the fund’s total assets under management (AUM) were Rs 5,615 Cr. The fund tracks benchmarks NIFTY 500 TRI, MCX I-COMDEX Composite Index, and CRISIL Short-Term Bond Index. 

The fund has an expense ratio of 0.52%, and although the risk grade is high for the fund, the interesting part is that the fund has been rated 5-star by Value Research.

The fund’s asset allocation comprises 58.18% in equity, 16.66% in debt, 9.83% in commodities, 0.52% in real estate, and 14.82% Cash and cash equivalents (CCE).

The fund has generated an average return of 23.88% in the last 3 years, significantly higher than the Multi Asset Allocation category average of 16.16%. This indicates that the fund has consistently delivered amazing returns over the stated period, reflecting its ability to generate alpha through active asset allocation.

Top 10 holdings: Adani Green Energy, Adani Enterprises, Reliance Ind, ICICI Bank, HDFC Bank, HDFC Life, ICICI Prudential Asset Management, Aurobindo Pharma, Indus Towers, and Black Box.

Top 5 sector-wise holdings: Financial, Energy & Utilities, Materials, Technology and Healthcare.

Risk Profile: The fund’s standard deviation of 11.98% is higher than the category average of 9.12%, which means that the fund carries higher volatility and risk than its peers. 

The fund’s Sortino Ratio of 2.24 is substantially above the category average of 1.35, indicating that the fund has rewarded investors well for the downside risk it has taken.

With a Sharpe Ratio of 1.50, compared with the category average of 1.14, the fund has delivered better risk-adjusted returns. Which means that the fund has generated 31.6% more excess return per unit of volatility than the category average.

Word of caution

While Multi Asset Allocation Funds offer diversification by investing across equity, debt, gold and other asset classes, they carry high risk. 

Their performance depends largely on the fund manager’s asset allocation strategy, and returns can vary significantly based on how effectively the portfolio is rebalanced across different market conditions. 

Moreover, these funds can still experience periods of volatility, particularly when equity markets witness sharp corrections.

Investors should also remember that past performance is not a guarantee of future returns. A fund that has delivered exceptional returns over the past few years may not necessarily maintain the same trajectory in the future.

Before investing, assess your financial goals, risk appetite and investment horizon, and avoid selecting a scheme solely based on recent returns. Reviewing the fund’s asset allocation strategy, consistency of performance and risk metrics is equally important before making an investment decision.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.

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