Invest in Best Multi Cap Funds in India 2024
Discover the best Multi Cap Funds in India for 2024. Learn about who should invest, key benefits, risks, and find the top 5 performing funds.
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What are Multi Cap Funds?
Multi Cap Funds are equity mutual funds that invest across companies of various market capitalizations—large-cap, mid-cap, and small-cap companies. This balanced approach helps in neutralizing the risk and provide a balanced returns. This fund leverages returns from small and mid-cap companies while obtaining steady returns through large cap investments
Who Should Invest in Multi Cap Funds?
- Diversified Investors: People who are looking to diversify their funds can opt for this, as it offers a mixture of large cap, mid cap, and small cap, that way, you can leverage opportunities across the market
- Moderate Risk Takers: Investors with a moderate risk appetite can consider investing this
- Long-Term Investors: Those with a long-term investment horizon, typically 5 years or more, aiming for substantial growth over time.
- First-Time Equity Investors: Individuals new to equity investments who prefer a diversified approach to minimize risk.
Top 5 Multi Cap Funds
| Fund name | Category | Risk | 6 months return | 1 year returns | Rating | Fund Size in crores |
| ICICI Prudential Multicap Fund | Multi Cap | Very High | 20.56% | 47.66 | 4 | 13025 |
| Kotak Multicap Fund | Multi Cap | Very High | 23.20% | 55.99% | NA | 13216 |
| HSBC Multicap Fund | Multi Cap | Very High | 25.09% | 62.29% | NA | 3560 |
| Bandhan Multicap Fund | Multi Cap | Very High | 19% | 42.56% | NA | 2303 |
| SBI Multicap Fund | Multi Cap | Very High | 19.45% | 38.06% | NA | 17007 |
Factors to Consider While Investing in Multi Cap Funds
- Fund Manager’s Expertise: The fund manager’s ability to pick the right stocks across various market caps is crucial
- Investment Goals: Be informed about your financial goals and investment objectives, stay invested for 5 years atleast to reap the benefits out of it
- Historical Performance: Review the fund’s historic returns to get a better idea about how the fund would perform under various financial conditions
- Expense Ratio: Lower expense ratios can lead to higher net returns over a period of time
Major Benefits of Multi Cap Funds
- Diversification: Spreads investments across large, mid, and small-cap stocks, reducing the risk
- Growth Potential: This fund combines the stability of large-caps with the growth potential of mid and small-caps.
- Liquidity: This fund comes with easy liquidity making it easy for you to encash it as per your requirement
- Long-Term Returns: Potential for significant returns over the long term due to diversified exposure.
- Risk Mitigation: Reduces the risk associated with investing in a single market cap category.
Risks Involved in Multi Cap Funds
- Market Risk: Susceptible to overall market volatility and economic conditions.
- Stock Selection Risk: The fund’s performance depends on the fund manager’s ability to select the right stocks.
- Sector Risk: Overexposure to certain sectors can increase the risk of your investment amount if that sector performs poorly
Frequently Asked Questions (FAQs) about Multi Cap Funds
1. What are Multi Cap Funds?
Multi Cap Funds are equity mutual funds that spread your investments across large, mid, and small-cap companies, providing a diversified portfolio.
2. Who should invest in Multi Cap Funds?
It is Suitable for diversified investors, moderate risk takers, long-term investors, and most preferably who are trying equity sector firstly
3. What are the benefits of investing in Multi Cap Funds?
The benefits include diversification, high growth potential, flexibility, long-term returns, and risk mitigation.
4. What are the risks associated with Multi Cap Funds?
Risks associated with this Multi Cap Fund include market risk, stock selection risk, sector risk, liquidity risk, and regulatory risk.
5. How do I choose the right Multi Cap Fund?
Consider factors such as the fund manager’s expertise, historical returns, expense ratio, portfolio composition, and your own risk tolerance and investment goals.
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