New Delhi: Investment patterns in India are undergoing a significant transformation, with a growing number of investors shifting towards diversified portfolios that include equity, debt, and commodities.
Global market volatility, inflationary pressures, and evolving central bank policies are driving this change, leading to a surge in investments in hybrid mutual funds.
According to data from the Association of Mutual Funds in India (AMFI), hybrid mutual funds witnessed robust growth in August 2025. The total assets under management (AUM) in this category rose to ₹10.7 lakh crore, marking a 20.22% increase compared to August 2024. Within this segment, multi-asset allocation funds attracted net investments of ₹3,528 crore, up from ₹2,827 crore a year earlier.
Experts attribute this trend to the increasing relevance of a diversified investment approach. Equity offers potential for growth, debt provides stability, and commodities like gold and silver serve as effective hedging tools. Instead of choosing one asset class, multi-asset funds combine all three into a single strategy, offering investors a structured and balanced investment path.
Leading fund houses such as Nippon India are at the forefront of this shift. Their Multi Asset Allocation Fund and Multi-Asset Omni Fund of Fund are gaining traction for their innovative structures. While the former includes direct investments in gold and silver, the latter uses a quant-driven model to allocate resources across underlying schemes, including commodity assets.
These funds’ flexibility further enhances their appeal. Investors have the option to choose either lump-sum investments or systematic investment plans (SIPs), which offer the advantages of diversification and tax efficiency. Financial advisors note that in the current climate of persistent inflation and unpredictable global cycles, multi-asset strategies help balance risk and returns effectively.
The rise in commodity prices, especially gold, reflects the growing demand for safe-haven assets. As geopolitical tensions and economic uncertainties persist, investors are increasingly viewing precious metals not just as a hedge but as a strategic opportunity.
In essence, the Indian investment landscape is evolving rapidly. Hybrid mutual funds, particularly those with multi-asset allocations, are emerging as a preferred choice for investors seeking resilience and growth in a volatile world.