Multicap funds are funds that invest in companies with large market capitalization, as well as smaller and mid market capitalization. The beauty of these funds is that they can quickly move from investing in larger companies to smaller and mid sized cap companies and vice versa and hence have plenty of choices.
Some of the multicap funds have performed well over the longer term horizon. Let's take a look at 3 such multi-cap funds.
Canara Robeco Equity Diversified Fund
This fund is a fund that has been rated well by Crisil and has in fact been accorded the highest rating of 5-star.
Returns have been greater over the longer term with 5-year returns of 9.61 per cent on an annualized basis, while the 7-year returns have been 12.51 per cent on an annualized basis. Overall, the returns have been good. The growth fund has an NAV of Rs 147.91, while the dividend plan has an NAV of Rs 33.23. The holdings of the fund includes some good quality stocks like Reliance Industries, Infosys, HDFC Bank, ICICI Bank and Tata Consultancy Services.
A good option to invest in the fund would be through the SIP route, where the minimum investment is Rs 5,000 initially and thereafter one can invest Rs 1,000 every month.
PGIM India Diversified Fund
This fund has been rated 5-star by Crisil. An SIP of Rs 10,000 each month for the last 36-months would have grown to Rs 4.19 lakhs.
The 1-year returns from the fund is more than 13 per cent, while the 5-year returns is 9.13 per cent. Overall, the fund has performed rather well over the medium to long term. Among the top holdings of the company include Reliance Industries, ICICI Bank, Infosys, JB Chemicals, HCL Technologies etc.
Value Research has accorded PGIM India Diversified Fund a 4-star rating. For those looking to invest for the long term the fund could generate good returns. However, as we all know mutual equity funds are risky and hence only those with an appetite to bear risk should invest.
UTI Equity Fund
UTI Equity Fund is another find that has been rated 5-star by Crisil. The assets under management at the fund are more than Rs 11,000 crores. One can start an SIP as well with a small sum of Rs 100 and Rs 100 thereafter every month.
The 5-year returns from the fund is nearly 10 per cent, while the 3-year returns from the fund is in excess of 11 per cent. Even the performance in the longer term has been fantastic with returns of nearly 14 per cent over a period of 7-years.
The holdings of the fund too is pretty solid with names like Bajaj Finance, HDFC Bank, L&T infotech, Infosys and Kotak Mahindra Bank. For those looking at an investment time frame of 5-7 years, this is not a bad bet.
About the author
Sunil Fernandes has spent 26 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, commodities, debt, mutual funds and tax planning. Sunil is currently Managing Editor for Goodreturns.in