New Delhi, Oct. 16 -- 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.

The one-year returns show a gap between the two categories. Quant Multi Asset Allocat...