Gold, debt or REITs? How the top five multi-asset funds are investing your money

Think all multi-asset funds invest your money in roughly the same way? A closer look at their portfolios tells a different story.

Take the five best-performing funds. Quant and Bandhan have invested nearly two-thirds of their portfolios in domestic equities, while 360 ONE has put almost a third in gold and silver. Edelweiss has more than half its money in debt, and WhiteOak Capital has a sizeable exposure to real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).

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An analysis of 31 multi-asset funds ranked by one-year returns identified these five top performers, delivering returns between 3.91 percent and 7.91 percent. But a deeper look at their September 2026 holdings reveals just how differently these funds are investing investors’ money.

How diversified are these portfolios?

Multi-asset allocation funds fall under the hybrid mutual fund category. Under SEBI’s classification, they must invest in at least three asset classes, with a minimum 10 percent allocation to each.

Also read: Multiple SIPs, same stocks? How to know if your mutual funds are actually diversified

However, fund managers have considerable flexibility in deciding how to distribute investments across equities, debt, precious metals and other permitted assets.

Quant and Bandhan: Equity-heavy, but with a difference

Quant Multi Asset Allocation Fund, which topped the one-year return chart at 7.91 percent, held 67.52 percent in domestic equities as of September. Large-caps dominated its portfolio at 55.86 percent, with smaller allocations to mid- and small-caps.

Its major stock holdings included Reliance Industries, Bharti Airtel, Adani Enterprises, Adani Green Energy and ICICI Bank.

Bandhan Multi Asset Allocation Fund, with a one-year return of 3.91 percent, also had a sizeable gross equity allocation of 64.98 percent. However, its investments were more spread out, with 39.53 percent in large-caps, 12 percent in mid-caps and 13.46 percent in small-caps.

Importantly, both funds held short equity-futures positions that offset part of their stock holdings. This means their actual unhedged equity exposure was lower than their gross equity allocations suggest.

Bandhan also had 7.33 percent invested in an overseas equity ETF.

360 ONE: Nearly one-third in gold and silver

360 ONE Multi Asset Allocation Fund, which returned 6 percent over one year, had the highest precious-metals exposure among the five.

Its September portfolio had 21.44 percent in gold ETFs and 11.06 percent in silver ETFs, taking their combined allocation to 32.49 percent.

By comparison, domestic equities accounted for 23.30 percent and debt for 29.88 percent. The fund also held 6.67 percent in REITs and InvITs, giving it exposure to several asset classes beyond stocks.

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Edelweiss: More than half the portfolio in debt

Edelweiss Multi Asset Allocation Fund, with a 5.76 percent one-year return, stood out for its debt-heavy portfolio.

As much as 53.63 percent was invested in debt instruments and debt-oriented mutual fund units. Corporate debt securities alone accounted for 45.52 percent of the portfolio, while government securities made up another 6.29 percent.

Domestic equities accounted for 24.91 percent, largely across large- and mid-cap stocks, with no reported small-cap allocation.

The fund also held 9.04 percent in silver and 6.36 percent in gold, taking its combined precious-metals exposure to 15.40 percent.

WhiteOak Capital: REITs and InvITs stand out

WhiteOak Capital Multi Asset Allocation Fund, which delivered a 4.52 percent one-year return, had another interesting portfolio mix.

Its standout feature was a 20.53 percent allocation to REITs and InvITs, instruments that provide exposure to income-generating real estate and infrastructure assets.

These holdings included Nexus Select Trust, Embassy Office Parks REIT and Cube Highways Trust.

The fund also invested 31.03 percent in debt and 27.82 percent in domestic equities. Gold accounted for 4.56 percent, while there was no reported silver exposure.

What should investors look at?

The comparison shows why investors should look beyond recent returns when choosing a multi-asset fund.

Despite belonging to the same category, these five schemes have substantially different exposures to equities, precious metals, debt and other assets. Their risk profiles and performance across market conditions can therefore differ.

A higher one-year return does not necessarily mean better diversification. Investors should examine the underlying asset mix and whether it complements their existing portfolio.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.