Multi Asset Allocation Funds are hybrid funds that have to invest in at least 3 asset classes at least 10 percent. Typically these funds have a combination of equity, debt, and another asset class such as gold, real estate, etc. Multi-asset funds are relatively less risky than other funds, making them suitable for investors who are unwilling to distribute their resources in volatile funds. There are investors, however, who understand that diversification can be of great benefit, and balanced portfolios may be more risky than they seem. A Multi Asset Fund invests simultaneously in various asset classes like equity, debt, and gold. They invest in different asset classes / schemes according to each of them's predetermined allocation limits.Some multi-asset funds invest directly in equity, debt, and gold units, while some invest indirectly in these asset classes.