Stories

Mutual funds
Mutual funds allow investors to pool their money with other investors, with the accumulated corpus invested across assets such as equities, bonds or a combination of both. Professional fund managers manage these portfolios, making mutual funds an option for investors who want diversification without selecting individual securities themselves.
The level of risk depends on the category of mutual fund selected.
Risk profile: Low to high, depending on the fund category
Investment tenure: Can range from a few days for certain liquid funds to several years for long-term equity funds
Expected returns: Vary according to the fund category and market performance
Taxation: Returns are generally subject to applicable capital gains tax rules. (Image: freepik)
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CNBC TV18•21-09-2026, 18:01
Multi-Asset Funds Surge: ₹3,671 Crore Inflow in August, 3-Year Returns Hit 18.5%
  • •Multi-asset allocation funds attracted ₹3,670.97 crore in August, making them the second-highest contributor to inflows in the hybrid funds category.
  • •Arbitrage funds slightly surpassed multi-asset funds with ₹3,789.02 crore in net inflows during the same month.
  • •These funds must invest at least 10% in a minimum of three asset classes, including equity, debt, and commodities like gold and silver.
  • •The category has shown strong performance, with the Nippon Multi Asset Allocation Fund delivering an 18.50% CAGR over three years.
  • •Multi-asset funds offer diversified exposure across various asset classes within a single scheme, though returns vary based on allocation and market conditions.

Key Questions Answered

Multi-asset allocation funds recorded net inflows of ₹3,670.97 crore in August, positioning them as the second-highest contributor to inflows within the broader hybrid funds category according to data from AMFI.

These funds are required to invest in a minimum of three asset classes, maintaining at least a 10% allocation in each class, which can encompass equity, debt, and commodities such as gold and silver.

The category has delivered double-digit annualised returns across several schemes over three years, with the Nippon Multi Asset Allocation Fund leading at an 18.50% CAGR return.