SBI Multi Asset Allocation Fund is a mutual fund offered by SBI Mutual Fund one of the leading asset management companies in India. This mutual fund house offers very qualitative funds in other categories. As it strategically allocates investments across a blend of three primary asset classes, equities, debt instruments, and gold. The combination of these three asset classes results in good diversification and an improved risk profile for the portfolio. So is this the best fund to invest in Online SIP for good returns for beginners or investors who are not comfortable with high risk?
let’s first understand what is the strategy of the SBI Multi Asset Allocation Fund.

SBI Multi Asset Allocation Fund is designed to enhance both the potential return and risk profile of the fund, the flexibility in asset allocation allows the fund managers to adapt to changing market conditions. The equity allocation can range from 35% to 80%, meanwhile, the debt allocation can vary between 10% and 55%, and the gold which can also fluctuate between 10% to 55%. Their asset allocation is decided on algorithms and macroeconomic conditions. When the algorithm suggests expected high returns & high risk for every asset class. So based on the indicators the fund management team changes the allocation between equity, debt, and other asset classes.
When there is opportunity in the equity market it puts high allocation up to the maximum limit allowed in the equity class and targets higher returns. But when stocks become less promising then they focus on risk management.

One of the fund’s strengths is its utilization of all asset classes to generate high returns. This sets it apart from other AMCs that rely on debt instruments for risk management 

Now let’s check how this fund and its strategy performed in the past. Comparing the performance with its benchmark and category average.