The mutual fund and the SIP are the most significantly growing investment instruments in India. According to a report by AMFI, the SIP assets under management (AUM) till December 2021 stood at Rs. 5,65,420.04 crore, and yet surging sharply. Here, the portfolio of a mutual fund SIP has been discussed which is 4 star rated by Crisil.
Multi-Cap Fund SIP investment rationale
A multi-cap mutual fund will diversify its investments in multiple company stocks, irrespective of their market capitalization, listed in the equity markets. The stocks will be selected based on their previous years' returns. The fund house can explore all the large caps, mid-caps, or small caps. These mutual funds come with lesser risk, compared to focused or small-cap funds. These funds are also lesser volatile. However, investors should hold the fund's portfolio for at least 3-4 years for good returns.
Investors should also verify the fund's AUM, and the expense ratio, to understand the risks.
Baroda Multi-Cap Fund - Plan B (Direct)-Growth
Baroda Multi-Cap Fund - Plan B (Direct) is a mutual fund SIP investment that has a NAV of Rs. 172.19, and the size (AUM) of this fund is Rs. 1154.05 crore. The Expense Ratio (ER) of this fund is 1.54%, while the category average is 0.67%. The Expense Ratio is the percentage, which the fund house will use from the retail investors' investments, for fund management purposes. However, this fund's ER is a bit higher than average, which can affect your returns marginally.
This mutual fund SIP has been best rated with 4 Star by reputed rating agency Crisil.
Absolute and annualized returns
As it is a multi-cap fund, its absolute returns from SIPs stood the best in the long term. In the last 1-year SIP return stood at 2.38%, in the last 2 years it has fetched 33.30% returns, in the last 3 years it has given 44.71% returns, in the last 5 years, it has fetched 55.78% returns. Annualized returns from Baroda Multi-Cap Fund - Plan B (Direct)'s SIP were 30.42% in the past 2 years, and 25.56% in the past 3 years.
Baroda Multi-Cap Fund - Plan B (Direct)'s absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 20.04%, in the last 2 years it has fetched 67.00% returns, in the last 3 years it has given 73.79% returns, in the last 5 years it has given 96.47% returns. In the past 2 years, the Baroda Multi-Cap Fund - Plan B (Direct)'s annualized returns stood at 29.14%, outperforming the category average of 26.62%.
Baroda Multi-Cap Fund - Plan B (Direct)'s total equity holding is 97.48%, and the rest of the 2.52% is invested in other sectors. Among the total 55 stocks, the Fund's Large Cap Investments are 42.38%, Mid Cap Investments are 12.9%, Small Cap Investments are 28.41%; and 13.79% investments are allocated in other funds.
This fund's portfolio turnover ratio is 58.00%. The top 10 equity holdings of the fund are ICICI Bank Ltd., Infosys Ltd., HDFC Bank, Reliance Industries Ltd., Persistent Systems Ltd. (Computers - software), Radico Khaitan Ltd. (Brew/distilleries), Sun Pharmaceutical Industries Ltd., Fortis Healthcare Ltd., Axis Bank, and Dalmia Bharat Ltd. (Cement).
Other funds under this category are, Quant Active Fund - Direct Plan - Growth, Mahindra Manulife Multi Cap Badhat Yojana - Direct Plan - Growth, Sundaram Multi Cap Fund - Direct Plan - Growth, and Invesco India Multicap Fund - Direct Plan - Growth, etc.
Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article. (Data mentioned as on March 8, 2022)