Top Performing Diversified Investment Funds for Your Portfolio Selection
In the ever-evolving world of investments, multi-asset allocation funds have become a popular choice for investors seeking balanced diversification and risk-adjusted returns. These funds invest across equity, debt, and commodities, providing a meaningful option for tactical diversification suitable for moderately high-risk investors with an investment horizon of 3 to 5 years.
Based on recent performance data, the following funds stand out as the top performers in India for 2025:
1. Quant Multi Asset Allocation Fund - Direct Growth
This fund has consistently led in 3-year and 5-year returns, showing strong long-term growth and effective asset management. As of mid-2025, the fund has an AUM of approximately ₹3,570 crore and an expense ratio of 0.58%. Over 3 years and 5 years, the fund has delivered a compounded annualised rolling return of 22.31% to 21.85% and 26.81% per annum, respectively, which is higher than the category average returns and the Nifty 50 - TRI.
2. ICICI Prudential Multi-Asset Fund
Known for stable and solid performance across multiple periods, this fund has an AUM of approximately ₹63,163 crore. Over 3 years, the fund has returned around 19.15% to 19.28% per annum, and over 5 years, it has delivered a return of approximately 23.85% per annum.
3. Nippon India Multi Asset Allocation Fund
This fund has shown strong recent returns with decent scale and a low expense ratio of 0.29%. As of mid-2025, the fund has an AUM of approximately ₹6,367 crore. Over 3 years, the fund has returned around 18.59% to 17.74% per annum, and over 1 year, it has returned approximately 11.38%.
Other Notable Funds
Other funds with consistent performance but slightly lower returns include UTI Multi Asset Allocation Fund, SBI Multi Asset Allocation Fund, Tata Multi Asset Allocation Fund, and Axis Multi Asset Allocation Fund.
In the present uncertain times, it would be imprudent to depend only on equities due to factors like Trump's tariffs, geopolitical tensions, and their impact on the economy and equity markets. Therefore, a multi-asset allocation fund can provide a valuable tool for diversification.
For instance, the UTI Multi Asset Allocation Fund currently holds around 67.8% of its assets in equities, with a large-cap bias and some tactical exposure to midcaps and smallcaps. The fund also holds around 13% in debt & money market instruments, comprising high credit quality and liquid papers. The portfolio turnover ratio of the scheme has been in the range of 200-300%.
The Quant Multi Asset Allocation Fund, despite having a high portfolio turnover ratio in the past (ranging from 200-350%), has delivered an appealing compounded annualised rolling return of 22.5% over 3 years and 30.9% over 5 years. The SD of 6.64 of the fund is lower than the category average and the Nifty 50 - TRI, indicating lower risk compared to some of its peers. It has a diverse portfolio of over 100 stocks, with the top 10 comprising 26.9% and including names such as ICICI Bank, Reliance Industries, Maruti, etc.
In conclusion, the Quant Multi Asset Allocation Fund stands out as the top performer in India for 2025, followed by ICICI Prudential and Nippon India funds, based on multiple performance metrics and AUM data as of mid-2025. These funds offer a balanced approach to investing, making them an attractive option for investors seeking stable long-term growth in volatile markets.
- Amidst the ever-changing landscape of finance, the popularity of multi-asset allocation funds stem from their ability to provide balanced diversification and risk-adjusted returns for investors.
- The performance of the Quant Multi Asset Allocation Fund - Direct Growth has been exceptional, leading in 3-year and 5-year returns, showcasing strong long-term growth and effective asset management.
- In the realm of personal-finance, the Quant Multi Asset Allocation Fund has an AUM of approximately ₹3,570 crore and an expense ratio of 0.58%, delivering a compounded annualised rolling return of 22.31% to 21.85% and 26.81% per annum, respectively.
- The ICICI Prudential Multi-Asset Fund has demonstrated stable and solid performance across multiple periods, boasting an AUM of approximately ₹63,163 crore.
- The Nippon India Multi Asset Allocation Fund has shown strong recent returns with decent scale and a low expense ratio of 0.29%.
- In the present economic climate, the volatility of stocks necessitates the use of diversified investment vehicles like multi-asset allocation funds to absorb potential shocks caused by external factors such as Trump's tariffs and geopolitical tensions.
- Education-and-self-development in finance should involve understanding the value of prominent funds like the UTI Multi Asset Allocation Fund, which holds around 67.8% of its assets in equities with a large-cap bias and tactical exposure to mid-cap and small-cap stocks.
- Technology plays a crucial role in managing the diverse portfolio of the Quant Multi Asset Allocation Fund, which has over 100 stocks with the top 10 comprising 26.9%.
- General-news outlets often feature discussions about the impact of inflation on the economy and the value of moderate-risk investment products like multi-asset allocation funds with an investment horizon of 3 to 5 years.
- A balanced lifestyle encompasses a well-rounded investment portfolio that takes into account the risks associated with various investment instruments, such as equities, debt, and commodities, and seeks to optimise return through tactical diversification.
