Mumbai, Feb. 24 -- Multi-asset funds work on the principle that by investing across different asset classes, investors can reduce volatility and optimize their returns, as at least one asset class is likely to do better than others in a given economic cycle. But can multi-asset portfolios work in Indian markets. Here is a look at the numbers.

Over the past one-year period, amid weakness in stock markets, multi-asset funds as a category have delivered average returns of 9.2%. Within the category, certain multi-asset funds have delivered higher returns. The stock market benchmark Nifty 50 has fetched a little over 2.6% in the same period.

On a five-year rolling basis, multi-asset funds have delivered returns of 13% on an average between 2...