Mutual Funds / Investment patterns are rapidly changing, with investments now being made in equity

Mutual Funds: Global markets remain uncertain. Tensions between countries remain unresolved, trade dynamics are changing, and central banks are constantly adjusting their policies. Inflation concerns, expectations of interest rate cuts, and growing demand for safe havens are driving gold prices higher. However, no single asset class can consistently outperform year after year. Consequently, a diversified investment strategy across equities, debt, and commodities has become more relevant than ever.

Multi-Asset Funds Offer Huge Potential

Equity markets offer potential growth, debt offers relative stability, and commodities like gold and silver provide a hedge. Instead of choosing one or the other, multi-asset funds integrate all three into a single strategy. For investors who avoid investing in individual assets, hybrid funds offer a structured and systematic investment opportunity. Investment opportunities in multi-asset allocation funds and multi-asset omni funds of funds are rapidly expanding.

Hybrid Mutual Funds See Surge in Investment

According to data from the Association of Mutual Funds in India (AMFI), hybrid mutual funds attracted significant investments in August 2025. Total assets under management (AUM) under this category increased to ₹10.7 lakh crore, a 20.22% increase compared to August 2024. Specifically, multi-asset allocation funds attracted net investments of ₹3,528 crore in August 2025, significantly higher than ₹2,827 crore in August last year.

Prominent fund houses in this sector include the Nippon India Multi-Asset Allocation Fund and the Nippon India Multi-Asset Omni Fund of Funds. These schemes invest diversified in equity, debt, and commodities. While the multi-asset allocation fund includes investments such as gold and silver, the Omni Fund of Funds uses a quant-driven model, defining investments in underlying schemes that include commodity assets.

Benefits of Investing Through SIPs

Amidst rising market volatility and inflation concerns, the presence of precious metals serves not only as a hedge but also as a strategic opportunity. Investors can invest in these funds through lump sum or Systematic Investment Plans (SIPs), thereby benefiting from diversification and tax efficiency. Hybrid funds offer investors a better way to stay invested while avoiding the complexities of asset-specific timing. Amid unpredictable global market cycles, these products play a crucial role in balancing risk and return.

Expert Opinion

"Equity markets and gold are both showing strength, while debt is providing stability. A multi-asset approach with gold and silver offers an attractive and balanced path for investors in the current environment," said a leading financial advisor.

In conclusion, multi-asset funds not only offer the benefit of diversification but also provide investors with risk management and long-term growth opportunities amid global uncertainties.