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Business News/ Mutual Funds / News/  How multi-cap mutual funds help you construct an ideal portfolio
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How multi-cap mutual funds help you construct an ideal portfolio

Investors explore multi-cap mutual funds for a diversified investment approach to navigate market cap volatility

Multi-cap mutual funds, also known as diversified equity funds, refer to mutual fund schemes that are meant to invest a minimum of 65 percent of their assets in equity and equity-related instruments with investment in stocks of different sectors and segments of the market. Premium
Multi-cap mutual funds, also known as diversified equity funds, refer to mutual fund schemes that are meant to invest a minimum of 65 percent of their assets in equity and equity-related instruments with investment in stocks of different sectors and segments of the market.

In light of the volatile nature of market caps, which has demonstrated both resilience against inflation and fluctuations in valuation, investors often find themselves in a perpetual state of confusion. This uncertainty prompts many to explore the advantages of multi-cap mutual funds, seeking a diversified investment approach that can potentially navigate the challenges posed by market cap volatility.

Multi-cap mutual funds, also known as diversified equity funds, refer to mutual fund schemes that are meant to invest a minimum of 65 percent of their assets in equity and equity-related instruments with investment in stocks of different sectors and segments of the market. 

How multi-cap funds help you construct the ideal portfolio

“Market cap winners keep changing. In the last 17 years, large caps were the best performers in 7 years, midcaps were the best performers in 3 years and small caps were in 7 years. It is noteworthy that specific sectoral opportunities are confined to distinct market cap segments; for instance, Auto OEMs are exclusively situated in the large-cap domain, while Capital Markets are exclusive to the mid and small-cap realms. Embracing a multicap strategy not only facilitates diversification across market caps but strategically positions investors to capitalize on these unique opportunities," said Sahil Kapoor, Head of Products and Market Strategist, at DSP Mutual Fund.

According to a weekly report by SMC Global Securities Ltd., these ten mid-cap mutual fund schemes generated decent returns in one year

Best multi-cap mutual funds to invest in 2024

Kotak Multicap Fund - Reg - Growth 41.80%

Nippon India Multi Cap Fund - Reg - Growth 41.40%

HDFC Multi Cap Fund - Reg - Growth 41.30%

ITI Multi Cap Fund - Reg - Growth 41.30%

Axis Multicap Fund - Reg - Growth 39.00%

Mahindra Manulife Multi Cap Fund - Reg - Growth 37.60%

ICICI Prudential Multicap Fund - Growth 37.20%

Union Multicap Fund - Reg - Growth 33.90%

Sundaram Multi cap Fund - Growth 32.90%

LIC MF Multi Cap Fund - Reg - Growth 32.80%

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 17 Jan 2024, 02:26 PM IST
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