Nippon India Multi-Asset Omni FoF has topped the hybrid fund-of-funds category with a 17.3% three-year CAGR, based on data for schemes with over ₹1,500 crore in assets. Kotak and ICICI Prudential funds follow in the rankings. While Nippon leads long-term returns, shorter-term performance has varied, emphasizing the need for investors to review multiple timeframes amid the current 15% correction in the Nifty 50.
Nippon India Multi-Asset Omni FoF has emerged as the leading performer in the hybrid fund-of-funds (FoF) category among schemes with assets under management (AUM) exceeding ₹1,500 crore. As of mid-August 2026, the fund reported a three-year compound annual growth rate (CAGR) of 17.3%. This performance places it ahead of peers like Kotak Multi Asset Omni FOF, which delivered 16.0%, and ICICI Prudential Aggressive Hybrid Active FOF, which returned 14.3% over the same three-year period.
Market Context and Performance Variation
This performance data arrives during a period of market correction, with the Nifty 50 trading at approximately 24,338 on August 17, 2026, which is about 15% lower than its peak in January 2026. Hybrid and multi-asset funds are designed to manage risk by spreading investments across different asset classes, such as equity, debt, and commodities. However, they remain subject to broader market trends, and their performance can fluctuate significantly depending on the timeframe being measured.
Investors often look at different return periods to gauge a fund's consistency. While Nippon India holds the top spot for the three-year horizon, the shorter-term data reflects a different picture. In the one-month performance metric, Kotak Multi Asset Omni FOF secured the lead with a 3.7% return. Over a three-month window, ICICI Prudential Aggressive Hybrid Active FOF led the category with a return of 5.8%.
What Investors Should Track
The shifting leadership across these funds—from Nippon India in the long term to Kotak and ICICI Prudential in the short term—highlights the importance of looking beyond single-period returns. For investors, the goal of these funds is typically to provide a smoother ride than pure equity products by using diversification to buffer against market volatility. However, this structure does not guarantee immunity from market corrections.
When evaluating these schemes, investors may look at the fund's asset allocation strategy, how it adjusts its mix between debt and equity, and how it has managed risk during past market downturns. Since performance rankings can change quickly, tracking the fund's consistency over multiple market cycles and understanding its specific mandate are important steps before making investment decisions.