Multi Asset Allocation Funds are hybrid mutual funds that invest in at least three asset classes — typically equity, debt, and gold. By spreading investments across multiple assets, they offer built-in diversification, helping reduce volatility while aiming for steady, risk-adjusted returns.

1. Diversified Portfolio: Exposure to equity for growth, debt for stability, and commodities for inflation protection.
2. Dynamic Rebalancing: Fund managers adjust allocations based on market conditions.
3. Professional Management: Expert-led allocation ensures optimal risk-return balance.
4. Volatility Control: Risk is spread across asset classes, making returns more stable.
5. One-Stop Investment: Simplifies portfolio management with a single fund.

Ideal for investors seeking diversification without managing multiple funds.

Offers risk-adjusted returns across market cycles.

Provides automatic adaptation to changing market conditions.

Convenient for medium- to long-term investors aiming for growth with reduced risk.

1. Balanced risk and returns
2. Professional portfolio management
3. Reduced volatility compared to pure equity funds
4. Built-in diversification and inflation protection

1. May underperform in strong bull markets
2. Slightly higher costs due to active management
3. Complex strategy for beginners
4. Less control over individual asset allocation

Equity-oriented: STCG <12 months taxed at 15%; LTCG >12 months taxed at 10% above ₹1 lakh

Debt-oriented: STCG <36 months taxed at slab rate; LTCG ≥36 months taxed at 20% with indexation

Dividends: Taxed according to income slab; TDS may apply