Nippon India Multi Asset Fund Review

Published: August 8, 2021 at 7:12 am

Nippon India Multi-Asset Fund is an open-ended scheme investing in Equity (including international equity), Debt and Exchange Traded Commodity Derivatives and Gold ETF.  In this review, suggested by Basudeb Roy, we consider if it makes sense to use this fund as the core component of a portfolio.

The fund was started in Aug 2020, so there is not much history to study its performance. The fund has an AUM of 1,095.64 Cr as of June 30th 2021. According to the scheme information document, the investment objective is to seek long term capital growth by investing in equity and equity-related securities, debt & money market instruments, and Exchange Traded Commodity Derivatives and Gold ETF as permitted by SEBI from time to time.

  • The fund can hold 50-80% of Equity & Equity related securities (including overseas securities /Overseas ETF)
  • 10% to 20% of Debt & Money Market Instruments
  • 10% to 30% of Gold ETF and Exchange Traded Commodity Derivatives (ETCDs). Here 10% gold exposure is typically constant with additional exposure to other commodities.

The asset type allocation history of the Nippon India Multi-asset fund is shown below.

Asset type allocation history of Nippon India Multi Asset Fund
Asset type allocation history of Nippon India Multi-Asset Fund

The domestic equity exposure has hovered close to 50%, meaning the fund will be taxed like a non-equity fund. The international equity exposure has hovered close to 20%. The domestic mutual fund units refer to Nippon India ETF Gold Bees.

Exposure to commodity futures is included in the cash equivalent bin. For example, as of June 30 2021, the fund held 10.74% in commodity futures.


  • Gold 7.09%
  • Crude Oil 1.53%
  • Metal Index 1.10%
  • Silver 1.0%

The market cap allocation history of Indian equities held by the fund is shown below. It has a large and midcap fund-like profile.

Market cap allocation of Nippon India Multi Asset Fund
Market cap allocation of Nippon India Multi-Asset Fund

So far, the fund has not strayed beyond the AAA rating, as seen below.

Bond rating profile history of Nippon India Multi Asset Fund
Bond-rating profile history of Nippon India Multi-Asset Fund

In the bond portfolio, a majority is intermediate-term (3-5 years) bonds.

Bond duration profile history of Nippon India Multi Asset Fund
Bond duration profile history of Nippon India Multi-Asset Fund

The expense ratio history is shown below. The direct plan TER (total expense ratio) was lowered for a few months (possibly to bring in some AUM)

Nippon India Multi Asset Fund Expense Ratio History
Nippon India Multi-Asset Fund Expense Ratio History

Considering the fund’s wide range of asset class options, it has chosen an understandably weird benchmark: 50% of S&P BSE 500, 20% of Crisil Short Term Bond Fund Index & 30% of Thomson Reuters – MCX iCOMDEX Composite Index.

It is not clear if the BSE 500 is a price index or a total return index. What matters more is that in its short history, the fund is yet to beat the benchmark.

6 MonthsSince Inception
Nippon India Multi Asset Fund27.4626
B:50% of S&P BSE 500, 20% of Crisil Short Term Bond Fund Index & 30% of Thomson Reuters – MCX iCOMDEX Composite Index28.9128.92
AB:S&P BSE Sensex TRI29.0437.59

In principle, a multi-asset fund investing in Indian equity, international equity, bonds, and commodities is a good idea. It can be used by a savvy investor who appreciates asset allocation and regular rebalancing among assets as the main (or only fund) in a portfolio.

The difference between theory and practice is often the packaging. Even if the non-equity fund like taxation is not a problem, an inaccessible benchmark, active management that underperforms, high and fluctuating fund management fees and wide flexibility in asset allocation (see Motilal Oswal Asset Allocation Passive FoFs Review) are huge dampeners against funds like Nippon India Multi-Asset Fund. Therefore we cannot bring ourselves to recommend investing in this fund. At the very least, it needs a little more history and a lot better performance to be taken seriously.

Do share if you found this useful

Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video!  More than 640 investors and advisors use this!
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 2525 investors and advisors are part of our exclusive Facebook Group! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos in an exclusive Facebook Group! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 585 salaried employees, entrepreneurs and financial advisors are part of our exclusive Facebook Group! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos in an exclusive Facebook Group!   
My new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parent’s plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Did you know? We have more than 1000+ videos on YouTube to explore! Join our YouTube Community!

Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored three print books, You can be rich too with goal-based investing (CNBC TV18), Gamechanger, Chinchu Gets a Superpower! and seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations based on money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements, write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps