This multi-asset FOF has given double-digit returns in its first year: Here’s what investors should know

Baroda BNP Paribas Mutual Fund’s Multi Asset Active Fund of Funds (FOF) has completed one year since launch, delivering a 10.67% return over the one-year period ended June 30, 2026, marginally outperforming its composite benchmark return of 10.38%, according to the fund house.

The asset management company said the scheme has delivered 10.31% returns since inception.

Based on its performance, an investment of ₹1 lakh at launch would have grown to around ₹1.11 lakh over the past year.

The fund is a multi-asset fund of funds, meaning it invests in other mutual fund schemes rather than directly in securities. Its portfolio is spread across equity, debt and gold, with allocations actively managed depending on market conditions.

How the fund invests

The scheme aims to provide diversification through exposure to three asset classes in a single investment. The fund manager can adjust allocations across equity, debt and gold to balance growth opportunities with portfolio stability.

Its performance is measured against a composite benchmark comprising 60% Nifty Composite Debt Index, 20% Nifty 500 Total Return Index and 20% INR Price of Gold, reflecting its diversified investment approach.

Investment and exit rules

The scheme allows investors to start with a minimum lump sum investment of ₹1,000, while systematic investment plans (SIPs) begin at ₹500 per month.

There is no entry load, but investors redeeming or switching units within one year of investment are charged an exit load of 1%.The fund house said investments held for more than 24 months are eligible for long-term capital gains tax at 12.5%, plus applicable surcharge and cess, in line with prevailing tax rules for such funds.

What investors should keep in mind

While the fund has delivered double-digit returns in its first year, one-year performance alone is not sufficient to assess a mutual fund’s long-term consistency. Returns can vary across market cycles, and past performance does not guarantee future results.

Investors should evaluate factors such as the fund’s investment strategy, risk profile, costs, asset allocation approach and suitability for their financial goals before investing. Multi-asset funds may help diversify risk by investing across different asset classes, but they remain subject to market risks.

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