'Multi-asset funds have cornered 30 per cent of hybrid fund inflows in 2025, reflecting a growing preference for diversified portfolios that combine equity, debt and commodities.'
Multi-asset funds remained among the fastest-growing mutual fund categories in 2025, supported by strong performance and record inflows, aided in part by the rally in gold and silver.
Performance has been a key driver of investor interest. Multi-asset funds, which invest across equity, debt and commodities, benefited significantly from the strong rally in precious metals over the past year.
In 2025, the category delivered an average return of 17.4 per cent, even as equity markets struggled, according to data from Value Research.
Assets under management (AUM) of multi-asset funds rose to ₹1.65 trillion in 2025, a near 60 per cent increase from about ₹1.03 trillion in 2024.
The longer-term growth has been even sharper, with AUM more than tripling from ₹52,869 crore in 2023.
Net inflows stood at ₹47,056 crore in 2025 -- nearly 10 per cent higher than the ₹42,569 crore mobilised in 2024 and more than double the inflows seen in 2023.
Alongside commodities, stable returns from debt allocations and selective equity exposure supported overall performance.
The sustained rise in inflows and AUM, experts said, suggests that multi-asset funds are increasingly being viewed as a core portfolio allocation rather than a tactical bet.
"Multi-asset funds have cornered 30 per cent of hybrid fund inflows in 2025, reflecting a growing preference for diversified portfolios that combine equity, debt and commodities," said Suranjana Borthakur, head of distribution and strategic alliances at Mirae Asset Investment Managers (India).
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Feature Presentation: Rajesh Alva/Rediff
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