Multicap funds are funds that invest in large, mid and small cap companies. Since they have the flexibility to invest in any size market cap companies, they cam maximize returns as well.
Here are 4 multicap funds that could be good investment opportunities by way of Systematic Investment Plans (SIPs). We have chosen these largely on the basis of Crisil ratings, as well as the returns and portfolio.
1. UTI Equity Fund – Direct Plan
UTI Equity Fund has a 5-star rating from Crisil. The fund also has a 4-star rating from Value Research. Individuals can start an SIP at UTI Equity Fund with a monthly SIP of as little as Rs 500. The minimum initial investment to start the SIP is Rs 5000.
The fund has generated a returns of 7.04 per cent over a 5-year period, while the three year returns has been 4.27 on an annualized basis. The returns from almost all of the equity mutual fund schemes have been low on account of the collapse in the markets following the Covid 19 crisis.
The fund has its top 5 investments in the stocks of HDFC Bank, Bajaj Finance, Kotak Mahindra Bank and HDFC to name a few.
2. Canara Robeco Equity Diversified
This fund also has a 5-star rating from Crisil and a 4-star rating from Value Research. The fund has given a return of 7.02 per cent on an annualized basis over the last 5 years. The net asset value under the growth plan is Rs 127.03. The assets under management is close to Rs 2,000 crores.
Canara Robeco Equity Diversified has almost 92 per cent of the money parked in equities. The fund's largest holdings include the likes of HDFC Bank, Reliance Industries, ICICI Bank, Infosys and Bharti Airtel. A regular monthly SIP can be started with a small sum of Rs 1,000, while the initial amount required is Rs 5,000. It's a good fund for those looking to generate returns over the medium to long term.
3. JM Multicap Fund - Growth
JM Multicap Fund growth has a 5-star rating from Crisil. The fund has generated a returns of 6.54 per cent on an annualized basis over the last 5 years. Returns like all equity funds have been low, because of the collapse in the stock markets, following the coronavirus pandemic.
One can invest in the fund with a small sum of Rs 1,000 every month through the Systematic Investment Plan. The 5-year returns from the fund has been 7.72 on an annualized basis. Among the top holdings of the fund are HDFC Bank, Bajaj Finance, Bharti Airtel and Asian Paints. The net asset value of JM Multicap Fund - Growth, under the direct plan is Rs 31.19.
4. DSP Equity Fund – Growth
This fund has a 4-star rating from Crisil and Value Research. The minimum investment that is needed to start a SIP is Rs 500, while the monthly amount needed is Rs 500. The fund has a long standing record and was launched in 1997.
The top holdings of the fund include names like HDFC Bank, ICICI Bank, Bharti Airtel, Bajaj Finance and Ultractech Cement.
Almost 90 per cent of the funds are invested in equities. The net asset value of DSP Equity Fund - Growth is Rs 39.61. If you are looking at a longer term time frame of 5 years, this fund should generate good returns.
About the author:
Sunil Fernandes has spent 25 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.