Multi-asset allocation mutual funds: Active schemes vs omni FoFs, how do portfolio strategies and returns compare?

Multi-asset allocation funds and omni FoFs offer exposure to multiple asset classes, but their returns can differ significantly. A comparison of their asset allocation and underlying holdings shows how the investment strategies of these two categories differ.

Multi-asset allocation funds invest across at least three asset classes, with a minimum allocation of 10% to each. These may include equity, debt, and commodities such as gold and silver, REITs, and others. By spreading investments across different assets, these hybrid funds aim to diversify portfolios.

However, investors also have another option within this space: multi-asset omni fund-of-funds (FoFs). These funds combine active and passive investment strategies by investing in underlying mutual fund schemes and exchange-traded funds (ETFs), rather than building their entire portfolios by directly selecting individual securities.

*Source: Value Research, Returns as on 15 October 2026, Direct plans

The one-year returns show a gap between the two categories. Quant Multi Asset Allocation Fund led the multi-asset allocation category with a 1-year return of 9.65%, while Aditya Birla Sun Life Multi-Asset Omni FoF topped the omni FoF category with 4.38%.

All four omni FoFs for which return data is available have delivered positive one-year returns. In contrast, some conventional multi-asset allocation funds have posted negative returns over the same period, including Quantum Multi Asset Allocation Fund (-1.87%), which leads the list of laggards.

Quant Multi Asset Allocation Fund has 53.24% of its portfolio in equity, 10.44% in debt, 10.48% in commodities, and 25.84% in cash and cash equivalents.

In comparison, Aditya Birla Sun Life Multi-Asset Omni FoF allocated 69.39% to equity, 12.27% to debt, 12.30% to commodities, and 6.04% to cash. Quant's portfolio has a substantially higher allocation to cash and cash equivalents, while the ABSL omni FoF has a larger equity allocation.

The underlying holdings also differ. Quant's equity exposure includes Reliance Industries, Bharti Airtel and Adani Enterprises. Its debt-related holdings include the Nippon GoldBeES ETF, the Quant Silver ETF, and a National Bank for Agriculture and Rural Development certificate of deposit (CD) maturing on 19 January 2027.

In comparison, ABSL Omni's equity exposure includes Aditya Birla Sun Life Flexi Cap, Small Cap and Multi-Cap funds. Its debt-related holdings are Aditya Birla Sun Life Gold ETF, ABSL Short Term Fund and ABSL Corporate Bond Fund.

The key distinction is that an omni FoF gains exposure through underlying active and passive schemes, whereas a conventional multi-asset allocation fund builds its portfolio through direct securities, commodity ETFs and other debt instruments. Investors should therefore examine the actual holdings, asset allocation, and risks rather than comparing returns alone.