Multi-cap funds are equity funds that invest in a variety of capitalizations such as large, mid and small. They have a moderate risk profile and are appropriate for conservative investors or less aggressive investors. Assume being able to invest in a variety of stock options across cap ranges or all stocks listed on the NSE/BSE. Multi-cap funds are designed to achieve just that. They are equity mutual funds that invest primarily in equities of companies in the small-cap, mid-cap, and large-cap sectors, as their name implies. Investing in multi-cap funds is dependent on a variety of criteria, including portfolio allocation, risk tolerance, and investment objectives. Multi-cap funds, on the other hand, provide a number of advantages that appeal to investors.
Quant Active Fund (G)
Quant Active Fund Direct-Growth is a Multi Cap mutual fund scheme from Quant Mutual Fund. Quant Active Fund Direct-Growth strategy earned 101.10 percent in the last year, 114.85 percent in the last three years, and 412.91 percent since its inception. The minimum SIP amount for this scheme is Rs 1,000. The majority of the fund's assets are invested in Financials, healthcare, FMCG and metals.
ITC, Fortis, SBI, ICICI are the funds top holdings. The fund's expense ratio is 0.5 per cent. The current Asset Under Management (AUM) of the fund is Rs 595 Crs Cr and the latest NAV as of 5 July 2021 is Rs 379.
With a diverse portfolio of Large Cap, Mid Cap, and Small Cap companies, the program strives to provide long-term capital appreciation and income.
Principal Multi-Cap Fund (G)
Principal Mutual Fund's Principal Multi Cap Growth Fund Direct-Growth is a Multi Cap mutual fund strategy. Principal Multi Cap Growth Fund Direct-Growth is a modest fund in its category, with assets under management (AUM) of 757 crores as of 30 June 2021. The fund's expense ratio is 1.69 percent, which is higher than the expense ratios charged by most other Multi Cap funds.
The 1-year returns on Principal Multi Cap Growth Fund Direct-Growth are 63.54 percent. It has generated an average yearly return of 16.85 percent since its inception. Every two years, the fund has quadrupled the money put in it.
The majority of the money in the fund is invested in the financial, construction, technology, engineering, and services industries. In comparison to other funds in the category, it has less exposure to the Financial and Construction industries.
The fund's top 5 holdings are in ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Reliance Industries Ltd., Bajaj Finance Ltd..
INVESCO India Multi-Cap (G)
Invesco India Multicap Fund Direct-Growth is an Invesco Mutual Fund Multi Cap mutual fund scheme. As of 30 June 2021, Invesco India Multicap Fund Direct-Growth had assets under management (AUM) of 1,410 crores, making it a medium-sized fund in its category. The fund's expense ratio is 0.98 percent, which is comparable to the expense ratios charged by most other Multi Cap funds.
The 1-year returns on Invesco India Multicap Fund Direct-Growth are 70.57 percent. It has returned an average of 19.79 percent per year since its inception. Every two years, the fund has quadrupled the money put in it.
The financial, engineering, automobile, healthcare, and services sectors account for the majority of the fund's holdings. In comparison to other funds in the category, it has less exposure to the Financial and Engineering sectors.
ICICI Bank Ltd., Axis Bank Ltd., State Bank of India, Mphasis Ltd., and Birla Corporation Ltd. are the fund's top five holdings.
Benefits of Investing In Equity Multi-Cap Funds
The capital size restrictions are lifted with multicap funds. While studying the markets, most novice young investors prefer to invest in multicap funds. During tumultuous times, the risk in multicap funds is frequently minimised more easily. A good multicap fund is unaffected by fluctuations in sectorial or market cap size of a business. In your wealth-building journey, they are the risk regulators. Multicap funds are usually created to seek out larger growth potential in emerging economies. Positive economic trends can assist a good multicap portfolio perform better while also reducing the negative impact of a bear market.
You can reduce your risk by using a diversified approach. This is because different sectors or areas of the market can perform differently at any one time, and spreading investments across several sectors keeps risk under control.
Should Consider Investing In Equity Multi-Cap Funds?
Any mutual fund scheme you choose to invest in should be based on your investing objectives and the level of risk you are willing to accept. Consulting a wealth coach can help you invest based on your needs, whether you are a rookie or experienced investor.
Multi-cap funds, on the other hand, are appropriate for investors seeking long-term wealth creation opportunities with a balanced risk-reward profile. Due to the fact that multi-cap funds invest across market caps, the fund manager can reallocate investments to small-caps, mid-caps, or large-caps as market conditions change. Multi-cap funds provide benefits such as market cap diversification. Whether or whether you should invest in multi-cap funds, however, will be determined by your risk profile and investing objectives.
3 Best Performing Equity Multi-Cap Funds In June 2021
|Fund Name||1-Year Return||3-Year Return||5-Year Return|
|Quant Active Fund (G)||101%||29.01%||22.92%|
|Principal Multi-Cap Fund (G)||62.29%||14.57%||15.64%|
|INVESCO India Multi-Cap (G)||68.32%||15.40%||14.86%|
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