Only four multi-asset allocation funds have delivered SIP returns of more than 15% over the past three years, with Quant Multi Asset Allocation Fund topping the category at 18.51%. According to AMFI, these schemes invest across at least three asset classes, with a minimum allocation of 10% to each. The assets can include equity, debt, gold, silver and other permitted investments.<\/p>\n
The idea is to diversify across asset classes that can perform differently through market cycles. However, diversification does not mean similar returns across schemes. An analysis of multi-asset allocation funds with at least a three-year track record shows a wide variation in SIP returns. Only four funds delivered more than 15% over three years, while the lowest return was 7.52%.<\/p>\n
Quant Multi Asset Allocation Fund topped the three-year SIP return chart with 18.51%, followed by Nippon India Multi Asset Allocation Fund at 17.64%. WhiteOak Capital Multi Asset Allocation Fund and Aditya Birla Sun Life Multi Asset Allocation Fund were the other two schemes to cross the 15% mark.<\/p>\n
Axis Multi Asset Allocation Fund and SBI Multi Asset Allocation Fund delivered almost identical three-year SIP returns at 13.73% and 13.72%, respectively.<\/p>\n
Baroda BNP Paribas Multi Asset Fund followed with 12.83%, while ICICI Prudential Multi Asset Fund delivered 11.77%. Tata Multi Asset Allocation Fund and UTI Multi Asset Allocation Fund posted 11.68% and 11.40%, respectively.<\/p>\n
At the bottom of the three-year ranking were HDFC Multi-Asset Allocation Fund and Edelweiss Multi Asset Allocation Fund, with SIP returns of 9.90% and 7.52%, respectively.<\/p>\n
This means there was a gap of nearly 11 percentage points between the best and worst performers in the three-year comparison. The difference is significant for investors using SIPs because even a seemingly modest difference in annualised returns can materially affect the value accumulated over time.<\/p>\n
Quant again led the five-year SIP return chart, delivering 20.67%, followed by Nippon India at 18.42%.<\/p>\n
But three other funds crossed the 15% mark over five years even though their three-year SIP returns were below 15%.<\/p>\n
ICICI Prudential Multi Asset Fund is a notable example. Its three-year SIP return was 11.77%, but the five-year figure was 15.49%. SBI Multi Asset Allocation Fund moved from 13.72% over three years to 15.35% over five years, while UTI Multi Asset Allocation Fund went from 11.40% to 15.16%.<\/p>\n
Among the other schemes with five-year track records, Tata Multi Asset Allocation Fund delivered 13.68%, Axis Multi Asset Allocation Fund returned 12.95% and HDFC Multi-Asset Allocation Fund posted 12.06%.<\/p>\n
The AUM data also shows that the largest schemes were not necessarily the top performers.<\/p>\n
ICICI Prudential Multi Asset Fund is the largest scheme in the category, with net assets of \u20b986,785 crore. Yet its three-year SIP return was 11.77%, placing it below the category leaders.<\/p>\n
SBI Multi Asset Allocation Fund with an AUM of \u20b920,240 crore has delivered 13.72% over three years. Nippon India Multi Asset Allocation Fund, with \u20b916,926 crore in net assets, was the second-highest performer at 17.64%.<\/p>\n
Quant, meanwhile, has net assets of \u20b96,356 crore but it has delivered the highest three-year SIP return in the comparison.<\/p>\n