UTI Multi Asset Allocation Fund - Direct Plan - IDCW

UTI Multi Asset Allocation Fund - Direct Plan - IDCW holds up reasonably well within the Multi Asset Allocation category, currently carrying a 3-star rating. It has delivered steady, if unspectacular, returns over a full market cycle. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 79/100.

Cost: At 0.79%, the expense ratio runs 23% above the Multi Asset Allocation category average of 0.64%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.06 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 11.53% is on the lower side, suggesting a comparatively smoother ride.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Hybrid fund. The High risk rating means near-term volatility should be expected — this isn't a fund to check daily.