Multi Asset Funds comparison: How ICICI Pru, Nippon India and SBI Mutual Fund schemes stack up

Multi-asset mutual funds are designed to give investors a balanced approach to investing by distributing their capital among a variety of assets, including debt, stocks, commodities, and occasionally gold or other alternative investments.

The goal is to balance the relative stability of bonds and other assets with the growth potential of stocks so that the portfolio can absorb gains during periods of market strength and minimise losses during periods of market volatility.

Depending on market conditions, economic trends, and interest rates, fund managers actively manage the allocation, modifying the mix of debt, equity, and other assets to help even out returns over time.

Before reading further, please note that this is just for informational purposes only and not intended to recommend any of the schemes mentioned below. You should make an investment decision based on your personal financial goals and risk appetite.

ICICI Pru Multi-Asset Fund (G)

The fund has a moderate volatility profile with a standard deviation of 0.44, beta of 0.49, Fama measure of 0.03, and Sharpe ratio of 0.13. It primarily invests in banks, automobiles, IT, FMCG, finance, crude oil, retailing, healthcare, insurance, and infrastructure sectors. Top stock holdings include ICICI Bank, HDFC Bank, Axis Bank, ITC, Reliance Industries, Infosys, Interglobe Aviation, Bajaj Finserv, Maruti Suzuki, and TCS.

The fund has delivered 17.64% returns in the last 1 year, 20.00% over 3 years, 19.46% over 5 years, and 20.80% since inception. Its benchmark performance over the same periods is 16.05%, 17.59%, and 13.88%, respectively.

SBI Multi Asset Allocation Fund-Reg (G)

Volatility measures include a standard deviation of 0.46, beta of 0.96, Fama measure of 0.07, and Sharpe ratio of 0.17. The fund invests primarily in banks, IT, crude oil, chemicals, FMCG, retailing, finance, telecom, healthcare, and gas transmission sectors. Top holdings include PNB, HDFC Bank, Reliance Industries, GAIL India, UPL, Indus Towers, Biocon, ONGC, PB Fintech, and Restaurant Brands Asia.

Returns stand at 24.28% for 1 year, 20.29% over 3 years, 14.96% over 5 years, and 9.87% since inception. Benchmark returns were significantly lower during the same periods.

Nippon India Multi Asset Allocation Fund-Reg (G)

The fund’s portfolio is diversified across banks, automobile & ancillaries, finance, retailing, IT, power, capital goods, crude oil, consumer durables, and FMCG. Key stock holdings include ICICI Bank, HDFC Bank, Reliance Industries, SBI, Infosys, Axis Bank, Bajaj Auto, NTPC, LG Electronics India, and Kotak Mahindra Bank.

Returns for the fund are 26.70% in the last 1 year, 22.32% over 3 years, 16.67% over 5 years, and 17.87% since inception, significantly outperforming its benchmark.

Key Observations

• All three funds primarily invest in equities while diversifying across debt, commodities, and other asset classes to reduce risk.

• ICICI Bank, HDFC Bank, and Reliance Industries appear in all three schemes’ top holdings, reflecting a focus on large-cap stalwarts.

• All three funds have outperformed their respective benchmarks over 1, 3, and 5-year periods. Nippon India shows particularly strong recent returns despite being a newer fund.

• ICICI Pru Multi-Asset Fund has the lowest beta (0.49), indicating lower correlation with the market, while SBI Multi-Asset Fund has a higher beta (0.96), showing more sensitivity to market movements.

SEBI updates mutual fund framework: Multi-Cap funds must follow minimum equity allocation rules

Under the revised rules, SEBI has introduced minimum investment thresholds for equity schemes and standardised scheme descriptions to improve transparency and comparability.

For instance, a Multi-Cap Fund must invest at least 75% of its total assets in equity and equity-related instruments, with a minimum allocation of 25% each to large-cap, mid-cap and small-cap stocks. The scheme is defined as an open-ended equity fund investing across these three market capitalisations.

Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Investors should do their own research or consult a registered financial advisor before making investment decisions.