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 aim to diversify portfolios.
However, investors also have another option within this space: multi-asset omni fund-of-funds (). 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.
How do multi-asset allocation funds and omni FoFs compare on returns?
| Multi-asset allocation funds | 1- Yr Return | Multi-asset omni FoFs | 1-Yr Return |
| Quant Multi Asset Allocation Fund | 9.65% | ABSL Multi-Asset Omni FoF | 4.38% |
| 360 ONE Multi Asset Allocation Fund | 7.69% | Edelweiss Multi Asset Omni FoF | 3.58% |
| WhiteOak Capital Multi Asset Allocation Fund | 7.51% | Nippon India Multi-Asset Omni FoF | 3.00% |
| Bandhan Multi Asset Allocation Fund | 7.28% | Kotak Multi Asset Omni FoF | 2.29% |
| Edelweiss Multi Asset Allocation Fund | 6.21% | — | — |
*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.
How do their portfolio strategies differ?
The portfolio compositions of Quant Multi Asset Allocation Fund and Aditya Birla Sun Life Multi-Asset Omni FoF highlight differences in their investment approaches.
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 , and . 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.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.