Multi-asset allocation funds demonstrate significant variation in risk profiles despite belonging to the same hybrid fund category. According to Value Research data, of the 34 multi-asset allocation funds as of June 2026, only one fund carries a Low risk rating, while five are classified as High risk. The remaining 28 funds fall under the Very High risk category, with none falling into the Low to Moderate, Moderate, or Moderately High risk levels.
The only multi-asset fund classified as Low risk is the Edelweiss Multi Asset Allocation Fund, which maintains a conservative portfolio allocation. As reported by Value Research, the fund allocates 59.99% to debt and 48.23% to cash and cash equivalents, representing a significant concentration in relatively lower-risk assets compared to other schemes in the category.
Five funds classified as High risk demonstrate varying asset allocation strategies. According to the data, the 360 ONE Multi Asset Allocation Fund has 23.51% in equity, 33.15% in debt, 23.94% in commodities, 6.2% in real estate, and 13.2% in cash and cash equivalents. Meanwhile, the WhiteOak Capital Multi Asset Allocation Fund shows a higher equity allocation of 29.32%, 38.9% in debt, 10.89% in commodities, 18.58% in real estate, and 2.31% in cash equivalents.
The majority of multi-asset allocation funds fall into the Very High risk category, with several notable examples including the Aditya Birla Sun Life Multi Asset Allocation Fund which allocates 70.97% to equity, 11.31% in debt, 11.78% in commodities, 5.14% in real estate, and 0.8% in cash and cash equivalents. Other funds in this category include the Axis Multi Asset Allocation Fund, Bajaj Finserv Multi Asset Allocation Fund, Bandhan Multi Asset Allocation Fund, and Baroda BNP Paribas Multi Asset Fund.
Multi-asset allocation funds are required to invest across at least three asset classes including equity, debt, gold, silver, real estate, cash and cash equivalents. The riskometer system uses six risk levels: Low, Low to Moderate, Moderate, Moderately High, High, and Very High, helping investors understand where schemes stand on the risk spectrum. As reported by Value Research, the portfolio mix significantly influences risk levels, with funds having higher equity allocations typically carrying different risk profiles compared to those with larger debt or cash allocations.
