Multi-Asset Funds

Multi-asset funds are mutual funds that invest across at least three different asset classes — typically equity, debt, and gold (or real estate investment trusts) — within a single fund structure. SEBI mandates that multi-asset allocation funds must maintain a minimum 10% allocation to each of at least three asset classes. The fund manager dynamically shifts allocations between asset classes based on valuations, economic outlook, and market conditions — increasing equity allocation when markets are undervalued and shifting to debt or gold during periods of elevated risk. Multi-asset funds offer Indian investors a one-stop diversification solution without the need to manually rebalance across multiple products. The tax treatment of multi-asset funds depends on the equity allocation — if equity exposure exceeds 65% for at least two thirds of the year, the fund is taxed as an equity fund, with long-term capital gains taxed at 10% above ₹1 lakh.