Inflows to multi-asset allocation funds jumps 22% MoM amid increased stock market volatility

Inflows into multi-asset allocation mutual funds rose 22.46% month-on-month in June to Rs 4,810.76 crore, up from Rs 3,928.51 crore in May, as investors sought diversification amid equity market volatility driven by geopolitical tensions, FII outflows and inflation concerns. Multi-asset funds, which by SEBI rule invest at least 10% in each of equity, debt and commodities, have delivered annualised returns of about 14-20% over three years, with Nippon India, SBI, Aditya Birla Sun Life and Motilal Oswal schemes among the top performers. Experts noted that gold's correction from peak levels has lowered downside risk and that funds with 65%+ equity exposure get favourable equity-tax treatment, making them attractive in volatile times.