Multi-Asset Funds Soared in 2025: What's Next for 2026 Amid Volatility?

• Multi-asset funds delivered over 16% returns in 2025, significantly outperforming large, mid, and small-cap funds despite volatile equity markets.
• Gold and silver allocations (10-15%) were crucial for 2025 outperformance, compensating for muted equity and accrual-driven debt returns.
• Fund managers like Soumya Sarkar and Niharika Tripathi highlight dynamic allocation and precious metals' role in navigating market challenges.
• 2026 demands dynamic allocation, with potential for equity recovery, focus on quality large caps, and active rotation between assets.
• Risks include lagging pure equity in rallies, incorrect allocation calls, global tensions, interest rate volatility, and currency depreciation.

Why It Matters: Multi-asset funds excelled in 2025 due to diversification; 2026 requires dynamic strategies for continued success.