INVESTMENTS
MULTI-CAP FUNDS
Funds for multicap equity engage in businesses of different sizes and in many industries. They have more discretion over the distribution of funds across large, mid-sized, and small businesses than do large or mid-cap funds. They can also adjust the portfolio due to this flexibility as the market conditions alter.
A portfolio of equities and equity-related stocks of businesses with a range of market capitalizations is where Multi Cap Funds invest their corpus. Thus, investments in large-cap, small-cap, and mid-cap enterprises can be found in a multi-cap fund. Since each plan makes investments in varying amounts, the Multi-Cap Fund category is an excellent choice to fit your level of risk tolerance.
Types of Multi-Cap Funds:
These schemes primarily focus on investing it the large Cap segments and then explore opportunities in large and small cap sector
These scheme aggressively look for investment opportunities in the small/mid segments and look at the large cap stocks only to protect any downside
Why should you invested in Multi-Cap Funds
Here's a brief overview of the relative performance of several equity fund types before we discuss the kinds of investors that can profit from investing in multi-cap funds. A benchmark comparison of equity plans against the S&P BSE Sensex Index is shown in the table below:
As seen above, over the past seven years, Multi Cap Funds have outperformed Large Cap Funds. However, compared to large and multi-cap schemes, small- and mid-cap funds give higher returns.
If you have a moderate risk tolerance and your investment goal is long-term wealth growth, you may want to look into Multi-Cap Mutual Funds. These programs aim to maximize each and every investment opportunity while providing a diversified approach to equity market investing.
Factors to be Considered before investing into Multi-Cap Fund
A multi-cap fund makes investments in stocks and securities linked to stocks of firms with a range of market capitalizations. In addition, the fund management is always searching for ways to diversify the investment in order to meet the scheme's goals. As a result, the fund management is essential to the success of these plans. You may wish to look at the fund manager's track record of success across different schemes before making an investment. You also need to consider how he has handled market ups and downs while managing the multi-cap fund.
In order to guarantee diversity, it is crucial for investors to evaluate the fund's portfolio concentration. Your portfolio runs the danger of being overexposed to one industry if, for instance, the fund manager is bullish on the IT sector and allocates a bigger percentage of the corpus to small-, mid-, and large-cap stocks of these businesses.
When you redeem your Multi Cap Fund units, the capital gains made by you are subject to Capital gains Tax. Also, any dividend received by you is subject to Dividend Distribution Tax or DDT.
All fund houses are mandated to deduct tax (DDT) of 10% before paying out dividends to unitholders.
Performance of Multi-Cap Fund:
| Equity Scheme | 1Y | 3Y | 5Y | 7Y |
|---|---|---|---|---|
| Large-Cap | 28.87% | 7.84% | 11.25% | 8.30% |
| Mid & Small Cap | 47.16% | 20.33% | 20.00% | 13.52% |
| Multi-Cap | 28.87% | 7.84% | 11.25% | 8.30% |
Top Performing Multi-Cap Funds
Quant Active Fund Direct-Growth is a Multi Cap mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 10 yrs 10 m, having been launched on 01/01/2013. Quant Active Fund Direct-Growth has ₹6,060 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.77%, which is higher than what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
Nippon India Multi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 10 yrs 10 m, having been launched on 01/01/2013. Nippon India Multi Cap Fund Direct-Growth has ₹20,916 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.89%, which is higher than what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
Mahindra Manulife Multi Cap Fund Direct - Growth is a Multi Cap mutual fund scheme from Mahindra Manulife Mutual Fund. This fund has been in existence for 6 yrs 7 m, having been launched on 20/04/2017. Mahindra Manulife Multi Cap Fund Direct - Growth has ₹2,205 Crores worth of assets under management (AUM) as on 30/09/2023 and is small fund of its category. The fund has an expense ratio of 0.42%, which is less than what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
Invesco India Multicap Fund Direct-Growth is a Multi Cap mutual fund scheme from Invesco Mutual Fund. This fund has been in existence for 10 yrs 10 m, having been launched on 01/01/2013. Invesco India Multicap Fund Direct-Growth has ₹2,675 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.68%, which is close to what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ICICI Prudential Multicap Fund Direct Plan-Growth is a Multi Cap mutual fund scheme from Icici Prudential Mutual Fund. This fund has been in existence for 10 yrs 10 m, having been launched on 01/01/2013. ICICI Prudential Multicap Fund Direct Plan-Growth has ₹8,761 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.03%, which is higher than what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
Sundaram Multi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from Sundaram Mutual Fund. This fund has been in existence for 10 yrs 10 m, having been launched on 01/01/2013. Sundaram Multi Cap Fund Direct-Growth has ₹2,040 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.95%, which is higher than what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
Aditya Birla Sun Life Multi-Cap Fund Direct - Growth is a Multi Cap mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 2 yrs 7 m, having been launched on 19/04/2021. Aditya Birla Sun Life Multi-Cap Fund Direct - Growth has ₹4,364 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.62%, which is close to what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
Axis Multicap Fund Direct - Growth is a Multi Cap mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 2 yrs, having been launched on 26/11/2021. Axis Multicap Fund Direct - Growth has ₹4,258 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.47%, which is less than what most other Multi Cap funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
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