Why Nippon India Multi Asset Allocation Fund a top performing Hybrid Fund in current market conditions

Current market context

Equity market bounced back after ceasefire between US and Iran. However, the ceasefire did not hold with both sides launching strikes and the Strait of Hormuz, volatility has returned to the market. The broad market benchmark, Nifty 50 TRI is down almost 7% on a YTD basis (source: NSE, as on 17^th June 2027). The 10-year G-Sec yield rose from 6.6% to 7.1% but has now declined to 6.8% (source: Bloomberg, as on 17^th June 2027). Though commodities have been volatile, gold is up 6% on a YTD basis (source: MCX spot prices, as on 17^th June 2027). The US market rallied and S&P 500 has given 19% return in INR terms on a YTD basis (source: MCX spot prices, as on 17^th June 2027).

Why Multi Asset Allocation?

Equity and debt are the two most popular asset classes for asset allocation. However, other asset classes like commodities and international equities can add richer diversification to your portfolio. There is low correlation of returns between different asset classes (see the chart below). Adding multiple classes to your asset allocation can provide stability to your portfolio and get potential risk adjusted returns.

You may like to read more about Multi Asset Allocation funds - Role of asset allocation in achieving your financial goals

Source: NSE, MCX, Bloomberg, Advisorkhoj Research, as on 30^th June 2026. Equity is represented by Nifty 50 TRI, debt by Nifty 10 year benchmark G-Sec Index, Gold by MCX Spot Prices and International by S&P 500 in INR. Disclaimer: Past performance may or may not be sustained in the future

Multi asset allocation funds have been gaining popularity with investors, especially in the current geo-political and economic environment. In the last three years assets of multi asset allocation funds have increased by 6X from Rs 31,149 crores to Rs 1.96 lakh crores (source: AMFI, as on 30^th June 2026). In this article, we will review Nippon India Multi Asset Allocation Fund, one of the top performing funds in its category.

Nippon India Multi Asset Allocation Fund - 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 March 2026). 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 since the inception scheme. 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 17^th July 2026

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 since the inception of the scheme. You can see that Nippon India Multi Asset Allocation Fund experienced smaller drawdowns compared to Nifty 50 TRI.

Source: NSE, Advisorkhoj Research, as on 17^th July 2026

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 17^th July 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 were same for both, fund and the category.

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

Note on taxation

Minimum holding period for long term capital gains taxation for Nippon India Multi Asset Allocation Fund is 24 months. Short term capital gains will be taxed as per the income tax rate of the investor. Long term capital gains will be taxed at 12.5%.

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.