07 lakh crore, a 487% jump over the past three years, far outpacing the 115% rise in flexi‑cap funds. The surge coincided with a period when the Sensex and Nifty hovered around record highs, prompting many salaried investors to look beyond pure equity bets for steadier returns. Analysts attribute the growth to the funds’ built‑in diversification across equities, debt, gold and even international assets, which appeals to investors wary of volatility after the 2022 rate‑hike cycle. Moreover, the RBI’s gradual easing and the government's push for financial inclusion have nudged more retail money into systematic investment plans, where multi‑asset options often feature prominently.
For a typical Indian salaried professional, the key question is whether to allocate to both fund families, switch entirely to multi‑asset, or stick with flexi‑cap. Flexi‑cap funds still offer pure equity exposure and can capture upside when the Nifty rallies, but they lack the downside buffer that a blended portfolio provides. Multi‑asset schemes, on the other hand, can smooth returns during market corrections, though they usually carry higher expense ratios and may dilute equity upside. Financial planners recommend a balanced approach: keep a core equity position through flexi‑cap or index funds, and complement it with a modest allocation to multi‑asset funds for risk mitigation.
Ultimately, the right mix depends on individual risk tolerance, investment horizon, and tax considerations. Monitoring fund performance and rebalancing annually can help retail investors harness the benefits of both categories.