Multi-asset funds' AUM grew 487% in 3 years vs 115% for flexi-cap: Should you invest in one or both for diversification?

Multi-asset funds have seen a massive surge in assets under management (AUM), growing nearly fivefold in three years. This category invests across equities, debt, and gold, offering a diversified portfolio in a single scheme. In contrast, flexi-cap funds, which invest in companies of all market capitalizations, have seen a more moderate rise in AUM. This difference highlights how investors are increasingly seeking a broader mix of asset classes to manage risk.
For investors, the key is to understand your own risk appetite and investment horizon. Multi-asset funds can be a good choice for those wanting instant diversification across sectors and asset classes. Flexi-cap funds, on the other hand, focus on equity growth. You do not necessarily need to hold both, but understanding their distinct strategies can help you align your investments with your financial goals. Always review your portfolio periodically.
Excerpt from Mint
Multi-asset funds saw AUM surge 487% to ₹ 2.07 lakh crore in three years, compared with 115% growth for flexi-cap funds. But should investors hold both, switch to multi-asset or choose only one? Experts explain the key factors to consider. Multi-asset allocation funds from the hybrid category have grown much faster…Read the original at Mint
Key takeaways
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