360 ONE Multi Asset Allocation Fund NFO: Multi asset allocation solution in volatile times

The 360 ONE Multi Asset Allocation Fund was launched in August 2025, and for investors who started an SIP in the fund since then, the fund has delivered 49.22% XIRR. In September 2025 alone, when the Indian equity markets were struggling with global uncertainties, the fund gave a return of 5.77% against the Multi Asset Category average of 2.99%. (Source: Advisorkhoj research) In this article, we will review the 360 ONE Multi Asset Allocation Fund.

Shifting market dynamics

Challenges with increasing Volatility – Uncertainty – Complexity – Ambiguity

Different asset classes rotate and emerge as winners in different years, depending on market and economic conditions (see the chart below).

Source: NSE, MCX, Advisorkhoj Research, as on 31^st October 2025. Equity is represented by Nifty 50 TRI, Debt by Nifty 10 year Benchmark G-Sec Index, Gold and Silver by MCX spot prices

Navigating challenges of Volatility – Uncertainty – Complexity – Ambiguity: Multi Asset Allocation Strategy

Traditional asset allocation i.e., equity and debt can reduce portfolio risks, but in an increasingly complex environment multi asset allocation can be more effective combating Volatility – Uncertainty – Complexity – Ambiguity challenges.

What are multi asset allocation funds

Multi-Asset Allocation funds are hybrid mutual fund schemes which invest in 3 or more asset classes. According to SEBI regulations, multi-asset allocation funds must invest a minimum of 10% each in at least 3 asset classes. Apart from the two most popular asset classes, debt and equity, these schemes invest in asset classes like commodities (e.g., gold, silver), international equities, real estate investment trusts (REIT), infrastructure investment trusts (InvITs), etc. The fund manager decides the proportion of allocation to each asset class based on the market conditions to balance risks and returns.

Why multi-asset allocation funds?

• Consistency in performance: The chart below shows the year wise returns of different asset classes versus simulated multi asset allocation fund portfolio (compromising of 25% BSE 500 TRI + 45% Nifty Composite Debt Index + 30% Gold and Silver (in INR) over the last 10 fiscal years. You can see that the simulated portfolio was able to limit downside risks and provided more consistent investment experience to investors.
  
  

  

  Source: BSE, MCX, as on 31^st March 2025. Equity is represented by BSE 500 TRI, Debt by Nifty Composite Debt Index, Gold and Silver by MCX spot prices



• Superior risk adjusted returns: Simulated multi asset allocation fund portfolio generated similar average rolling returns compared to pure equity (BSE 500 TRI) with much lower risks (standard deviation). The simulated multi asset allocation fund portfolio did not have instances of negative over 2 year investment tenures and also was able deliver 7%+ CAGR returns more consistently than the pure equity.
  
  

  

  Source: BSE, MCX, as on 31^st March 2025. MAAF compromises of 25% BSE 500 TRI + 45% Nifty Composite Debt Index + 30% Gold and Silver (in INR)

Why invest in multi asset allocation fund now?

360 ONE Multi Asset Allocation Fund

The 360 ONE Multi Asset Allocation Fund aims to provide reasonable returns with lower risks by investing in multiple classes to provide long term growth with relative stability. (see graphic). Mayur Patel (President and Fund manager: Equity), Milan Mody (for the Debt Portion), and Rahul Ketawat (for the Commodity portion) are the fund managers of this scheme.

Source: 360 ONE Product presentation

Investment Framework of 360 ONE Multi Asset Allocation Fund

The fund managers follow a dynamic asset allocation depending on prevailing market conditions.

Debt Allocation Strategy: For debt allocation, the three-pronged SLR framework is followed that focus on consideration on Safety, Liquidity and returns.

1. Safety: Securities are chosen with a focus on well-managed, high-quality issuers, with a preference for papers rated by reputed credit rating agencies.


2. Liquidity: The fund managers maintain adequate allocation to highly liquid debt instruments to ensure flexibility and redemption support with a blend of short duration papers to optimize cash flow management.


3. Return: A dynamic duration management ensures active management of interest rate risk to capture potential capital appreciation.

Equity Allocation Strategy: The SCDV framework is followed for investment into Equity with no sector or market cap bias.

• Secular: The core portfolio consists of companies growing profits and delivering ROE upwards of 15% fairly consistently. The fund managers aim to be always overweight in this quadrant.


• Cyclical: This quadrant has companies that are dependent on economic cycles undergoing cycles of high profit growth in an economic upcycle. ROEs of these companies tend to be lower over long term due to the higher capital intensity. Hence, allocation to these companies is kept tactical.


• Defensives: The fund managers also allocate tactically to companies with high ROE and robust cash flows, but modest growth over the long term.


• Value Traps: The companies that have struggled to generate ROE and profit of more than 15% over long tenures are underweight in the portfolio.
  
  

  

Commodities Allocation Strategy: Investments in instruments like Exchange trades commodity Derivatives (ETCds) and Commodity ETFS (gold/silver) is done with a long-term investment approach pertaining to commodities fundamentals, demand-supply trends and macro factors is followed for the commodities allocation. The short-term approach focuses on arbitrage opportunities, price corrections or event driven trades in the commodity markets. The strategic short-term allocation to gold and silver provides relatively steady returns having low correlation to debt or equity, helping balance the portfolio.

REITs and INVITs Allocation: Allocation to REITs and INVITs help capture growth through Real Estate Cycles and provides diversification. See the chart below that shows the growth of Nifty REITs and INVITs. The relatively stable return from this category provides a hedge against inflation as the income is linked to the rent that is dependent on inflation.

Current portfolio construct

Source: Fund Factsheet. Data as on 31^st October 2025

Taxation Facts

360 ONE Multi Asset Allocation Fund enjoys a long term capital gains taxation for holding period of 24 months are longer. Long term capital gains tax are taxed at 12.5%.

Who should invest in the 360 ONE Multi Asset Allocation Fund NFO?

The fund may be suitable for investors who:

• Seek stability in volatile markets.


• Aim for better than debt returns while keeping volatility in check.


• Want to diversify across various asset classes.


• Look for investment for midterm to long term goals of goals 3-5+ years

Contact your financial advisor or Mutual Fund distributor to understand if the 360 ONE Multi Asset Allocation Fund is suitable for you.