If the past one year has left equity mutual fund investors disappointed, one category has quietly told a very different story. While benchmark indices corrected sharply and many equity fund categories struggled to generate meaningful returns — some even slipping into the red — multi asset allocation funds emerged as one of the standout performers in the mutual fund universe.
The contrast is hard to miss. Sensex has fallen around 8.31% over the last one year, while Nifty is down about 5.22%. Broader market weakness has also been visible, with Nifty Midcap 150 delivering just 5.83% and Nifty Smallcap 250 managing a modest 1.45% over the same period. That pain has reflected in equity mutual fund returns too, where several categories found it difficult to even deliver high single-digit gains.
Against this backdrop, multi asset allocation funds as a category delivered an average return of around 12% over the past one year. And some schemes significantly outperformed even that benchmark, with the best performers generating returns of up to nearly 26%.
