Axis Multi-Asset Active FOF: Dynamic allocation across multiple asset class

Axis MF has launched a new fund offer (NFO), Axis Multi-Asset Active FOF. The fund will invest across 3 asset classes viz equity, fixed income, commodities (precious metals). Funds with exposure to multiple (3 or more) asset classes are increasingly becoming popular with retail investors. With gold and silver enjoying a strong rally, interest in multi asset funds or fund of funds have grown in recent past. In fact, 60% of hybrid (exposure to two or more asset classes FOFs launched in last 5 years have been multi asset FOFs. Axis Multi-Asset Active FOF has opened for subscription on 21^st November 2025 and will close on 5^th December 2025. In this article we will review this NFO.

Why multi-asset allocation?

• Winners rotate across asset classes: No single asset class performs at all times. Different asset classes emerge as winners in different years, depending on market and economic conditions (see the chart below). In the last 15 years, equity was the winner 6 times, debt once and precious metals 8 times.
  
  

  

  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.



• Lower volatility, protect downside and capture upside: The chart below highlights the benefits of diversification: mixed portfolios, especially those including a healthy proportion of debt and gold, provided steady returns and lower volatility over the period. Combining assets reduces risk compared to equity or gold alone, as seen in lower standard deviations and better minimum returns. The 35/35/30 mix produced the highest CAGR (10%) with moderate volatility (8.2%) and the best minimum returns (3%), showing strength in diversification. Portfolios with higher gold allocation captured upside but muted risk compared to gold alone.
  
  

  

  Source: Axis MF Product presentation. NSE AMFI, Bloomberg. Equity - Nifty 500 Index, Debt - NIFTY Composite Debt Index, Gold –Nippon India ETF Gold BeES, and other combinations are different proportions of these three indices. Rolling return from 1^st Jan 2011 to 30^th Sept 2025. SD – Jan 2008 to Sept 2025



• Equity and Gold are counter cyclical: The chart below shows the 1-year rolling returns of Nifty 50 TRI (representing equity) and gold over the last 20 years. You can see that gold outperformed in the periods where equity returns were low / negative. Multi asset allocation funds can protect downside risks due to gold allocation.
  
  

  

  Source: NSE, MCX, Advisorkhoj Research, as on 31^st October 2025.



• Silver tends to outperform gold in bull market phases: The chart below shows the 1-year rolling returns of Nifty 50 TRI (representing equity), gold and silver over the last 10 years. You can see that silver outperformed in the certain market phases e.g., bull runs. Adding silver to your asset allocation will provide richer diversification. While both gold and silver are seen as safe haven assets, the industrial use of silver especially in new age technologies creates demand for the commodity in times of economic growth. Silver’s industrial use, especially in new age technologies like artificial intelligence infrastructure, quantum computing, and advanced battery systems, will increase the commodity’s demand in the future.
  
  

  

  Source: NSE, MCX, Advisorkhoj Research, as on 31^st October 2025. Equity is represented by Nifty 50 TRI, Gold and Silver by MCX spot prices.



• Timing the market is not easy: Each asset class goes through cycles. It is difficult to predict the correct entry and exit points consistently in the short term.
  
  

  

  Source :NSE Bloomberg. This is historical data for the period 1^st Jan 2007 to 30^th Sept 2025

Asset allocation of Axis Multi-Asset Active FOF

• Equity: 10-80% (dynamic allocation across market caps, diversified and thematic funds.)


• Precious Metals: 10-35% (Tactical decisions are made between gold and silver exposure through Gold ETFs & Silver ETFs)


• Debt & Money Market: 10-80% (active call on duration with tilt on high quality portfolio in the underlying schemes, dynamically selected based on duration, demand-supply and credit view)

Asset allocation strategy

• Active multi asset allocation framework to capture upcycle during various market cycles with gross equity allocation between 10% to 80% which attracts non-specific taxation.


• 10-35% exposure to Gold ETFs & Silver ETFs to take advantage of diversification to provide a stable growth experience for the investor across tenor of investment


• Asset allocation will depend on: -
  
  

  



• Allocation guided by Internal committee: The non-quantifiable factors like geo-political scenarios, events and market expectations that impact the trend in the market across asset classes. The committee will actively guide on asset allocation.

Why should you invest in an FOF?

• Lower reliance on one fund, fund manager, style or cycle.


• FOF structure enhances the probability of allocating to performing themes since it is not just about choosing the best asset class but also about choosing within the asset class.


• Dynamic allocation adjustments as market cycles evolve


• No taxation on rebalancing within schemes helping in quickly and efficiently switching to performing schemes.

Who should invest in Axis Multi-Asset Active FOF NFO?

• Investors looking for capital appreciation and stability over long investment tenures


• Investors looking to diversify across multiple asset classes


• Investors with high-risk appetites


• Investors with minimum 2-year investment horizon


• Investors looking for better post-tax returns over a holding period of 24 months

Investors should consult their financial advisors or mutual fund distributors if Axis Multi-Asset Active FOF NFO is suitable for their investment needs.