NFO Pick – (360 One Multi Asset Allocation Fund)

12 Aug 2025 , 08:54 AM

THE CASE FOR A MULTI ASSET ALLOCATION FUND

A multi asset allocation fund (MAAF) is for the investors who are willing to diversify across asset classes with a managed risk strategy, to enhance debt returns. MAAF combines equity with debt, gold, silver, and REITs to give the benefits of better-than-debt returns; as well as a more tax efficient asset allocation process. Here are the highlights.

• In a world which is volatile, uncertain, complex, and ambiguous; it is hard to take a timing call on assets. A better idea is to focus on asset allocation logic.
• Over the last 5 years; equities have been the best performing class in 3 years while gold and silver have been best performers in 1 year each. That is hard to call.
• The MAAF has a higher allocation to debt and gold, which are less volatile; while their negative correlation with equities helps manage risk better.
• Historically, this type of MAAF combination has delivered 7% Plus returns on more than 80% of the occasions; which is more than equity and debt individually.
• Due to its balanced risk-reward, MAAF generally tends to have lower drawdown during falling markets. This was visible in the last 3 major market crashes.
• The MAAF portfolio is especially known to outperform equities during flat market conditions, due to the predominant presence of debt and gold.

In a nutshell, the 360 One Multi Asset Allocation Fund offers true-to-label MAAF; where equity gives upside, debt the stability, gold the inflation edge, and silver / REITs provide the tactical allocation. More importantly, such allocation is tax-efficient.

HOW MULTI ASSET ALLOCATION FUNDS (MAAF) PERFORMED IN INDIA?

Here is a quick look at the performance of existing multi asset allocation funds in India.

Scheme Name	Return (%) 1-Year	Return (%) 3-Years	Return (%) Inception	Daily AUM (₹ in Crore)
ICICI Prudential Multi-Asset Fund	8.76	19.05	20.87	63,163.12
DSP Multi Asset Allocation Fund	12.50	N.A.	18.28	3,678.79
WhiteOak Capital MAAF	16.35	N.A.	17.15	3,134.97
Tata Multi Asset Allocation Fund	5.95	14.61	16.94	4,016.83
Nippon India Multi Asset Allocation Fund	11.47	17.74	16.88	6,706.32
ABSL Multi Asset Allocation Fund	8.28	N.A.	16.58	4,357.72
Baroda BNP Paribas Multi Asset Fund	6.33	N.A.	16.01	1,197.20
Kotak Multi Asset Allocation Fund	4.61	N.A.	15.98	8,231.08
Bandhan Multi Asset Allocation Fund	9.47	N.A.	14.75	2,084.44
Sundaram Multi Asset Allocation Fund	9.94	N.A.	13.86	2,671.08
Data Source: AMFI

There are a total of 27 MAAFs in India managing combined AUM of ₹1,35,547 Crore, with ICICI Pru Multi Asset Allocation funds accounting for 46.6% of total AUM. Average returns over different time frames are: 1-year (7.3%), 3-Years (16.4%), and Since Inception (13.3%). Multi Asset Allocation Funds are allocation funds and, owing to fund manager discretion, they cannot be strictly compared. Top performers have been consistent over time.

GLANCE AT THE 360 ONE MULTI ASSET ALLOCATION FUND NFO

Here are key details of the 360 One Multi Asset Allocation Fund NFO.

• NFO opened on July 30, 2025 and closes on August 13, 2025. It is an open ended scheme that invests in a combination of equity, debt, gold, silver, and REITs to ensure reasonably attractive returns with well managed risk.
• On the risk-o-meter, 360 One Multi Asset Allocation Fund is classified as “High Risk,” due to its allocation to equity positions. The fund will be predominantly invested in non-equity assets, and will be classified as allocation fund for tax purposes.
• The 360 One Multi Asset Allocation Fund is best suited to investors looking at slightly higher risk than debt for higher returns. More importantly, it is suited to people who want to do asset allocation strategically and in a tax-efficient manner.
• The Fund offers Regular and Direct plans. It also offers Growth option and IDCW option to investors. There will be specialized fund managers; Mayur Patel (Equities), Milan Mody (Debt), and Rahul Khetawat (Commodities).
• Minimum application amount in NFO is ₹1,000 and multiples of ₹1 thereof. The fund will be benchmarked to BSE 500 TRI (25%) + Nifty Composite Debt Index (45%) + Domestic Prices of Gold and Silver (30%).
• There will be an exit load of 1% of applicable NAV, if more than 10% of units held are redeemed before 12 months. Redemption after 12 months will not attract exit load. Investors are advised to take a minimum time frame of 3-5 years for best results.

360 One Multi Asset Allocation Fund will be classified as non-equity fund for tax purposes. Hence, LTCG will be taxed at 12.5% (if held for over 24 months). STCG (held for under 24 months) will be taxed as per the incremental slab applicable to the investor.