Why Returns and Risk both Matter, and not just Returns? How HDFC Multi-Asset Allocation Fund has navigated volatility across market cycles

Let’s understand how HDFC Multi-Asset Allocation Fund with its Structured Approach to Asset Allocation navigates volatility across market cycles.

Importantly, when the model based investing started from January 28, 2021 onwards, the Fund recorded lowest drawdowns across mentioned periods barring one.

The Fund has also exhibited lower standard deviation relative to category average benchmark.

Lower Volatility generally indicates smoother portfolio movements and fewer sharp swings in value. For investors, this may help in having a more stable investment experience, particularly during periods of uncertainty.

Alongside lower volatility, the HDFC Multi-Asset Allocation Fund has also given good rolling returns over time, trying to offer investors a balance between potential growth and relative stabilty.

As you can see from the above table, if stay invested in the HDFC Multi-Asset Allocation Fund for 5 years, the chances of returns greater than 8% is 90%.

The HDFC Multi-Asset Allocation Fund is designed to offer investors a diversified portfolio across asset classes. Rather than relying on a single source of return, the fund actively allocates across equities, debt and commodities to navigate different market environments.

The Fund Manager will increase exposure to Equity when market valuations are attractive and will prune down the equity exposure when equity markets get expensive or experience volatility or under any other conditions as found suitable by the Fund Manager.

Assuming ₹10,000 invested systematically on the first Business Day of every month over a period of time. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. SIP - Systematic Investment Plan.

Common notes for the above table A & B: *Inception Date: August 17, 2005. The Scheme is co-managed by Mr. Srinivasan Ramamurthy (Equity Portfolio) (since January 13, 2022), Mr. Anil Bamboli (Debt Portfolio) (since August 17, 2005) Mr. Bhagyesh Kagalkar (Dedicated Fund Manager for commodities related investments) (since February 02, 2022), Mr. Arun Agarwal (Arbitrage Assets) (since August 24, 2020), Ms. Nandita Menezes (Arbitrage Assets) (w.e.f March 29, 2025). Returns greater than 1 year period are compounded annualised (CAGR). # 65% Nifty 50 TRI + 22.5% Nifty Composite Debt Index +10% Domestic Price of Gold + 2.5% Domestic Price of Silver (w.e.f. December 10, 2025). ## Nifty 50 Index (TRI). TRI: Total Returns Index. The above returns are for Regular Plan - Growth Option. N.A.: Not Available. Different plans viz. Regular Plan and Direct Plan have different expense structure. The expenses of the Direct Plan under the scheme will be lower to the extent of the distribution expenses/commission charged in the Regular Plan. Returns as on January 30, 2026.

^Past performance may or may not be sustained in future and is not a guarantee of any future returns. Load is not taken into consideration for computation of performance.

Performance has been computed using values of the concerned benchmarks. From inception till December 31, 2017, the benchmark was CRISIL MIP Blended Index. It was then revised to CRISIL Hybrid 85+15 Conservative Index from January 1, 2018 to March 27, 2018, and to NIFTY 50 Hybrid Composite Debt 15:85 Index from March 28, 2018 to May 22, 2018. Between May 23, 2018 and July 25, 2023, the benchmark comprised 90% NIFTY 50 Hybrid Composite Debt 65:35 Index + 10% Domestic Price of Gold. From July 26, 2023 to December 9, 2025, it was 65% NIFTY 50 TRI + 25% NIFTY Composite Debt Index + 10% Domestic Price of Gold. Effective December 10, 2025, the benchmark is 65% NIFTY 50 TRI + 22.5% NIFTY Composite Debt Index + 10% Domestic Price of Gold + 2.5% Domestic Price of Silver.

For performance of other funds managed by fund managers, Please click here.

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning. Due to the personal nature of investments, investors are advised to seek professional advice before investing.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.