Multi-asset allocation mutual funds: Active schemes vs omni FoFs, how do portfolio strategies and returns compare?

Multi-asset allocation funds invest across at least three asset classes, with a minimum allocation of 10% to each. These may include equity, debt, and commodities such as gold and silver, REITs, and others. By spreading investments across different assets, these hybrid funds aim to diversify portfolios.

However, investors also have another option within this space: multi-asset omni fund-of-funds (FoFs). These funds combine active and passive investment strategies by investing in underlying mutual fund schemes and exchange-traded funds (ETFs), rather than building their entire portfolios by directly selecting individual securities.

*Source: Value Research, Returns as on 15 October 2026, Direct plans

The one-year returns show a gap between the two categories. Quant Multi Asset Allocation Fund led the multi-asset allocation category with a 1-year return of 9.65%, while Aditya Birla Sun Life Multi-Asset Omni FoF topped the omni FoF category with 4.38%.

All four omni FoFs for which return data is available have delivered positive one-year returns. In contrast, some conventional multi-asset allocation funds have posted negative returns over the same period, including Quantum Multi Asset Allocation Fund (-1.87%), which leads the list of laggards.

The portfolio compositions of Quant Multi Asset Allocation Fund and Aditya Birla Sun Life Multi-Asset Omni FoF highlight differences in their investment approaches.

Quant Multi Asset Allocation Fund has 53.24% of its portfolio in equity, 10.44% in debt, 10.48% in commodities, and 25.84% in cash and cash equivalents.

In comparison, Aditya Birla Sun Life Multi-Asset Omni FoF allocated 69.39% to equity, 12.27% to debt, 12.30% to commodities, and 6.04% to cash. Quant's portfolio has a substantially higher allocation to cash and cash equivalents, while the ABSL omni FoF has a larger equity allocation.

The underlying holdings also differ. Quant's equity exposure includes Reliance Industries, Bharti Airtel and Adani Enterprises. Its debt-related holdings include the Nippon GoldBeES ETF, the Quant Silver ETF, and a National Bank for Agriculture and Rural Development certificate of deposit (CD) maturing on 19 January 2027.

In comparison, ABSL Omni's equity exposure includes Aditya Birla Sun Life Flexi Cap, Small Cap and Multi-Cap funds. Its debt-related holdings are Aditya Birla Sun Life Gold ETF, ABSL Short Term Fund and ABSL Corporate Bond Fund.

The key distinction is that an omni FoF gains exposure through underlying active and passive schemes, whereas a conventional multi-asset allocation fund builds its portfolio through direct securities, commodity ETFs and other debt instruments. Investors should therefore examine the actual holdings, asset allocation, and risks rather than comparing returns alone.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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