The Growing Case For Multi-Asset Fund Of Funds – Anil Nathani

The rapid expansion of the mutual fund universe has made fund selection increasingly complex. As of May 2026, AMFI data shows 335 open-ended debt-oriented schemes and 569 open-ended equity-oriented schemes, each with its own risk-return profile and investment mandate. Debt funds vary across duration and credit quality while equity funds differ by market capitalization, investment style, portfolio construction and sectors. Add to this the growing universe of Gold ETFs and Silver ETFs, and selecting the right funds can quickly become a daunting exercise. A multi asset FoF invests in carefully selected equity, debt, gold and silver mutual funds, which in turn invest in the underlying securities. Instead of evaluating fund managers, investment styles, portfolio quality and performance consistency across multiple schemes, investors can rely on the expertise of the fund manager of the multi asset FoF to do this for them.