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The domestic market has experienced significant volatility this year, with a YTD decline of more than 10%. It is best to start diversifying your portfolio now when the Sensex is 3.90 per cent and the Nifty 50 is 3.74 per cent near the 52-week-low, in order to prevent the impact of one sector or category of stocks on your whole portfolio in a volatile market. Multi-cap mutual funds may be helpful when it comes to diversification since the fund manager invests in all major, mid, and small-cap stocks, which produces superior market-based returns over the long run with a diversified portfolio. The fund can produce a significant risk-adjusted return for your equity wealth support over the course of three to five years. Multi-cap funds are required to invest 25 per cent of their total assets in large-, mid, and small-cap firms or at least 65 per cent investment in equities & equity-linked securities, according to SEBI classification which indicates that the fund can create a significant risk-adjusted return for your equity wealth support over the long term of 3 to 5 years. Here are the two multi-cap funds that, taking into account the fund category, have produced SIP returns of up to 31% over the past three years.
Quant Active Fund - Direct Plan-Growth was introduced on January 7, 2013, and as of March 31, 2022, the fund's assets under management (AUM) was ₹2,329.31 crores, with a NAV of ₹392.05 as of July 1, 2022. SIPs in this fund can be started with as little as Rs. 1000 per month and the fund has an expense ratio of 0.58 per cent. Since its inception, Quant Active Fund Direct-Growth has generated returns of an average of 19.24 per cent each year and 5.47 per cent during the past year. The fund has produced SIP returns of 31.49% over the past three years, 21.41% over the past two years, and 24.43 per cent over the last five years. The fund has its asset allocation diversified across services, consumer staples, healthcare, financial, metals & mining sectors and the fund's top 5 holdings are in ITC Ltd., Vedanta Ltd., State Bank of India, Patanjali Foods Ltd., Larsen & Toubro Ltd..
The fund was established on January 2, 2013, and as of March 31, 2022, Nippon India Multi Cap Fund Direct-Growth had assets under management (AUM) of Rs. 11638.57 Cr with its net asset value (NAV) was Rs. 148.74. The minimum investment amount required for SIP in this fund is Rs. 500, and its expense ratio of 1.39 per cent may be higher than the category average. Since its introduction, Nippon India Multi Cap Fund Direct-Growth has generated returns of an average of 13.42 per cent each year and 11.76 per cent during the past year. The fund produced a SIP return of 22.67% in 2 years and a SIP return of 22.29% in 3 years. The fund's top 5 holdings are Linde India Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Indian Hotels Co. Ltd., and Housing Development Finance Corpn. Ltd. The asset allocation of the fund spans the financial, services, capital goods, technology, and automobile industries.
