This article discusses how multi-asset funds will be taxed after the 2024 Budget. A multi-asset fund should invest in at least three asset classes with a minimum allocation of at least 10% in each asset class.
So they could be taxed like equity funds, debt funds or other funds depending on whether they hold 65% or more stocks, 65% or more bonds or neither. See: Budget 2024 Capital Gains Taxation Guide.
Their taxation status could also change over time! Investors should then check the last 12 months’ average equity or fixed-income holding from the redemption date.
The most authoritative source for taxing each multi-asset fund is their respective AMCs. For example, Nippon India has clarified that its multi-asset fund will be taxed like an “other fund”. Thanks to a reader for sharing this with us.
We urge the reader to find out taxation information from their respective AMCs. We have compiled the average equity exposure of all multi-asset funds for the last 12 months or since inception (if younger) to provide an indication. The expected tax status is also indicated. In some cases, it is best to confirm with the AMC.
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
| Scheme Name | Avg | Expected Tax Status |
| Axis Multi Asset Allocation Fund-Reg(G) | 72.0125 | Equity |
| Baroda BNP Paribas Multi Asset Fund-Reg(G) | 70.6694 | Equity |
| UTI Multi Asset Allocation Fund-Reg(G) | 66.3595 | Equity |
| HDFC Multi-Asset Fund(G) | 66.1774 | Equity |
| Tata Multi Asset Opp Fund-Reg(G) | 65.9402 | Equity |
| ICICI Pru Multi-Asset Fund(G) | 65.3440 | Equity |
| Bandhan Multi Asset Allocation Fund-Reg(G) | 65.2107 | Equity |
| Aditya Birla SL Multi Asset Allocation Fund-Reg(G) | 64.9061 | Equity |
| Shriram Multi Asset Allocation Fund-Reg(G) | 64.8064 | Confirm with AMC |
| Sundaram Multi Asset Allocation Fund-Reg(G) | 64.5410 | Confirm with AMC |
| Kotak Multi Asset Allocation Fund-Reg(G) | 63.0879 | Confirm with AMC |
| Mirae Asset Multi Asset Allocation Fund-Reg(G) | 58.3023 | Other MF |
| Bajaj Finserv Multi Asset Allocation Fund-Reg(G) | 58.2570 | Other MF |
| HSBC Multi Asset Allocation Fund-Reg(G) | 56.5390 | Other MF |
| Nippon India Multi Asset Allocation Fund-Reg(G) | 51.4346 | Other MF |
| Quant Multi Asset Fund(G) | 51.1115 | Other MF |
| Motilal Oswal Multi Asset Fund-Reg(G) | 42.4289 | Other MF |
| SBI Multi Asset Allocation Fund-Reg(G) | 41.6919 | Other MF |
| Quantum Multi Asset Allocation Fund-Reg(G) | 41.1342 | Other MF |
| DSP Multi Asset Allocation Fund-Reg(G) | 39.9041 | Other MF |
| Edelweiss Multi Asset Allocation Fund-Reg(G) | 39.1137 | Other MF |
| Mahindra Manulife Multi Asset Allocation Fund-Reg(G) | 38.7149 | Other MF |
| Bank of India Multi Asset Allocation Fund-Reg(G) | 37.9945 | Other MF |
| WOC Multi Asset Allocation Fund-Reg(G) | 36.3995 | Other MF |
In summary, do not assume your multi-asset fund will be taxed like an equity fund, a debt fund or an “other fund”. Please confirm with the AMC.