Nippon India Multi Asset Allocation Fund: A top performing hybrid fund for current market conditions

Multi asset allocation funds have been gaining popularity with investors, especially in the current geo-political and economic environment. In the last one year assets of multi asset allocation funds have increased by 59% (as on 31^st December 2025). Multi asset allocation funds has been the best performing fund categories in 2025 (see the chart below). In this article, we will review Nippon India Multi Asset Allocation Fund, one of the top performing funds in its category.

Source: Advisorkhoj Research, as on 31^st December 2025

About Nippon India Multi Asset Allocation Fund

Nippon India Multi Asset Allocation Fund was launched in August 2020 and has Rs 9,567 crores of assets under management (AUM). The expense ratio of the regular plan is 1.4%. The fund has given 17.92% CAGR return since inception matching the broad equity market index, Nifty 50 TRI return over last 5 years (see the chart below), despite significantly lower downside risks as we will see later.

Source: Advisorkhoj Research, as on 31^st December 2025

Consistent outperformance

Nippon India Multi Asset Allocation Fund is one of the most consistent performers in Multi Asset Allocation Fund category. The graphic below shows the quartile rankings of Nippon India Multi Asset Allocation Fund for the last 12 quarters (last 3 years, as on 31^st December 2025). The fund was in top 2 quartiles, 10 times in the last 12 quartiles.

Source: Advisorkhoj Research, as on 31^st December 2025

Superior risk adjusted return to broad equity market index

The chart below shows the median and minimum rolling returns of Nippon India Multi Asset Allocation Fund versus the broad market index, Nifty 50 TRI for different investment tenures. You can see that the fund gave higher median returns than Nifty 50 TRI across all tenures. At the same time, the minimum returns than Nifty 50 TRI, across investment tenures. In other words, the fund gave superior risk adjusted returns relative to Nifty 50 TRI.

Source: Advisorkhoj Research, as on 9^th January 2026. *Fund - Nippon India Multi Asset Allocation Fund

Limited downside risks for investors

The chart below shows the drawdowns of the Nippon India Multi Asset Allocation Fund versus the broad market index, Nifty 50 TRI. You can see that Nippon India Multi Asset Allocation Fund experienced smaller drawdowns compared to Nifty 50 TRI.

Source: NSE, Advisorkhoj Research, as on 31^st December 2025

Consistently outperformed peer average

The chart below shows the 3 year rolling returns of Nippon India Multi Asset Allocation Fund versus the category average returns. You can see that, after an initial brief period of underperformance, the fund outperformed the category average across different market conditions.

Source: NSE, Advisorkhoj Research, as on 9^th January 2026

The chart below shows the rolling returns distribution of Nippon India Multi Asset Allocation Fund versus the category average for different investment tenures. You can see that the fund gave higher instances of 12%+ CAGR returns compared to the category average. At the same time % instances of negative returns was same for

Source: NSE, Advisorkhoj Research, as on 9^th January 2026. *Fund - Nippon India Multi Asset Allocation Fund. ^Category - Hybrid Multi Asset Allocation Fund category average

Investment strategy

Current Portfolio Positioning

Source: Nippon India MF, Advisorkhoj Research, as on 31^st December 2025

Source: Nippon India MF, Advisorkhoj Research, as on 31^st December 2025

Why invest in Nippon India Multi Asset Allocation Fund?

• Nippon India Multi Asset Allocation Fund seeks to provide diversification across asset classes with an aim to provide better risk adjusted returns


• Nippon India Multi Asset Allocation Fund also offers diversification under respective asset classes


• The fund aims to benefit from Tax efficiency through rebalancing within the fund


• Nippon India Multi Asset Allocation Fund is a one stop solution which may help to reap benefit of Growth of Equity, Stability of Debt & Diversification from Commodities

Who can find Nippon India Multi Asset Allocation Fund suitable?

• Investors looking for capital appreciation over long investment horizons


• Investors who want to reduce portfolio volatility by diversifying across multiple asset classes


• Investors with minimum 3 – 5 years investment tenure


• Investors with moderately high to high risk appetites


• You can invest either in lump sum or SIP based on your investment needs

Investors should consult their financial advisors or mutual fund distributors if Nippon India Multi Asset Fund is suitable for their investment needs.