Multicap funds must invest at least 75 percent of their total assets in equities, with at least 25 percent each in large-cap, mid-cap, and small-size stocks, according to the new SEBI criteria.
In recent years, a large number of multi-cap-oriented funds have failed to exceed the benchmark index. As a result, it's critical to choose multi-cap funds with a proven track record of providing positive returns across market phases and cycles.
Aside from stock selection, the fund manager continuously switches the fund's holdings between large-cap, mid-cap, and small-cap equities as market conditions dictate. Fund managers who use the leeway tend to favor large-cap stocks and adjust their mid-cap holdings by a slight margin if market conditions change.
Quant Active Fund
Quant Active Fund Direct-Growth is a modest fund in its category, with assets under management (AUM) of 1,051 crores as of 30 June 2021. The 1-year returns on Quant Active Fund Direct-Growth are 85.43 percent. It has returned an average of 21.98 percent per year since its inception.
The fund's top 5 holdings are in Vedanta Ltd., State Bank of India, Reliance Industries Ltd., Fortis Healthcare (India) Ltd, ITC Ltd. The fund is ranked 5 star by CRISIL rating agency.
A three-year SIP of Rs 10,000 will yield a result of Rs7.25 lakh, with a profit of Rs 3.65 lakh. With a diverse portfolio of Large Cap, Mid Cap, and Small Cap companies, the programme strives to provide long-term capital appreciation and income.
Mahindra Manulife Multi Cap Badhat Yojana
The assets under control of Mahindra Manulife Multi Cap Badhat Yojana Direct-Growth have valued 721 crores (AUM). It has returned 77.42 percent in the last year. It has returned an average of 19.63 percent per year since its inception. Morningstar, Value Research and CRISIL have given the fund a four-star rating. A three-year SIP of Rs 10,000 will result in a profit of Rs 2.76 Lakh and a payout of Rs 6.36 Lakh
Through proper diversification and low risk on business quality, the scheme aims to generate medium to long-term capital appreciation. Mahindra Manulife Multi Cap Badhat Yojana has a NAV of 21.79 as of Sep 13, 2021.
Invesco India Multicap Fund
The fund invests in large, mid, and small companies' stock and equity-related instruments in order to create long-term capital appreciation. The fund selects stocks throughout the market capitalization spectrum using a bottom-up investment technique.
The Invesco India Multicap Fund Direct-Growth manages assets of 1,573 crores (AUM). Returns during the last year have been 70.09 percent. It has returned an average of 20.29 percent per year since its inception.
A three-year SIP of Rs 10,000 will result in a profit of Rs 2.3 Lakh and a payout of Rs 5.9 Lakh
Kotak India Growth Fund
The assets under management of the Kotak India Growth Fund Series 4 Direct-Growth are approximately 82 crores (AUM). The program aims to create capital appreciation by investing in a diverse portfolio of equities and equity-related securities across a range of market capitalizations and sectors. Kotak India Growth Fund Series 4 Direct has a 1-year growth rate of 59.30 percent. It has had an average yearly return of 19.01 percent since its inception.
A three-year SIP of Rs 10,000 will result in a profit of Rs 2.71 Lakh and a payout of Rs 6.31 Lakh.
Advantages of Multi Cap Funds
The fund's top 5 holdings are in ICICI Bank Ltd., Persistent Systems Ltd., Reliance Industries Ltd., HDFC Bank Ltd., State Bank of India.
4 Best Multicap Equity Funds Based On SIP Returns For Long Term Investment
|Fund name||3-Year Return|
|Quant Active Fund||30.52%|
|Kotak India Growth Fund||24.90%|
|Invesco India Multicap Fund||16.68%|
|Mahindra Manulife Multi-Cap||24.76%|
Given the way the markets have run up, if you are a mutual fund investor in general and are investing when the Sensex has crossed the 58,000-point level, you should adjust your expectations. Stick to Sips and Small Amounts Rather than Big Amounts, we recommend sticking to Sips and Small Amounts.
Before investing in mutual funds, you should speak with a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, and authors take no responsibility for any losses or damages incurred as a result of the information contained in this article. Mutual funds are vulnerable to the dangers involved with the stock markets, so proceed with caution.