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Five Best Performing Multi-cap Funds to Invest in

Highlights

  • Want a diversified investment portfolio? Think of investing in multi-cap funds!
  • Read this post that shows why should you invest here and also which multi-cap funds you could consider investing in

Multi-cap funds are a type of equity funds that have the flexibility to invest across large, mid and small-cap stocks. They are not bound by any restrictions to invest only in one kind of stock. This helps the fund manager to take stock-picking calls based on market conditions. There are times when large-cap stocks are likely to do better than mid or small-cap. In such a scenario, the fund can afford to have maximum weightage to large-cap stocks. On the other hand, if the fund manager feels that large-cap stocks will underperform, he/she can increase weightage to mid or small-caps. These are all-weather funds and you get the best of large, mid and small-caps in one fund. Let us look at the five best performing multi-cap funds where you should invest.

Top Mutual Funds to Invest in Now

Best Performing Multi-cap Funds

Kotak Standard Multicap Fund

This fund is offered by Kotak Mutual Fund, which is a subsidiary of Kotak Mahindra Bank. These are the salient features and key points about this fund:

  • The fund was launched on 11th Sep 2009 and has returned 11.08% annualized since inception.
  • This is the largest multi-cap fund with an AUM of INR 25,984 crores.
  • The ideal time horizon when investing in this fund should be a minimum of 5 years.
  • The current portfolio has about 74% in large-cap stocks, 24% in mid-cap stocks and about 2% in small-caps.
  • It has been a consistent performer and is rated four stars by Value Research.
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Motilal Oswal Multicap 35 Fund

This fund is offered by Motilal Oswal Mutual Fund, which is part of the Motilal Oswal Group, one of the largest broking companies in the country. These are the salient features and key points about this fund:

  • This fund was launched on 28th April 2014 and has returned 13.73% annualized since launch.
  • The fund currently manages assets worth INR 9,830 crores.
  • The ideal time horizon when investing in this fund should be a minimum of 5 years.
  • The current portfolio has about 92% in large-cap stocks, 5% in mid-caps and 3% in small-caps. This clearly shows that the portfolio is skewed towards large-caps currently.
  • This fund is rated four stars by Value Research and has done well over the years.

Parag Parikh Long Term Equity Fund

This fund is offered by PPFAS mutual fund, which was started by Mr. Parag Parikh who was one of the more successful and legendary investors in the Indian stock market.

  • This fund was launched on 28th May 2013 and has delivered 14.52% annualized returns since launch.
  • The fund currently has an AUM of INR 3,186 crores.
  • The ideal time horizon when investing in this fund should be a minimum of 5 years.
  • This fund has a unique portfolio philosophy-it invests in stocks listed across Indian and international markets, so it is a mix of both Indian and overseas companies. In the current portfolio Alphabet (Google’s parent co) and Amazon are the two largest holdings.
  • It is a concentrated portfolio with only 20 stocks, 68% of the portfolio is in large-cap, 22% in mid-cap and 10% in small-cap.
  • This fund has been among the top performers and is rated five stars by Value Research.
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SBI Magnum Multicap Fund

This fund is offered by SBI mutual fund, which is the largest mutual fund in the country. These are the key points about the fund:

  • This fund was launched on 29th Sep 2005 and has delivered 10.16% annualized returns since launch.
  • The fund has assets worth INR 7,825 crores currently.
  • The ideal time horizon when investing this fund should be a minimum of 5 years
  • The current portfolio has invested 73% in large-cap, 19% in mid-cap and 8% in small-cap, it holds 44 stocks.
  • It is rated four stars by Value Research and has been a top quartile performer.

UTI Equity Fund

This fund is offered by UTI Mutual fund, which is the oldest mutual fund in the country. These are the key points about this fund:

  • It is the oldest multi-cap fund and was launched on 18th May 1992, this fund has delivered 11.47% annualized return since launch.
  • The fund manages an AUM of INR 9,057 crores currently.
  • The ideal time horizon when investing this fund should be a minimum of 5 years
  • The current portfolio has 58 stocks with 55% in large-cap,36% in mid-cap and 9% in small-cap. As we can see this fund has the highest weightage to mid and small caps among these five funds which is a different approach from other funds.
  • Since launch, this fund has done well and is rated four stars by Value Research.

Should You Invest in Multi-cap Mutual Funds?

We strongly recommend investing in multi-cap funds in your equity portfolio. These funds have the advantage of changing allocation from large-mid-small basis the market conditions. They give you the best of all cap curves and should be a major holding in your portfolio. Also, for first-time investors in equity mutual funds, a multi-cap fund should be the first pick. You can split your investment amount among these five funds if you are looking to invest only in multi-cap funds. If you are also looking to invest in large, mid or small-cap funds, you can pick any two basis the facts highlighted by us of each fund. Ideally, in an equity portfolio, you should not have more than five funds. To know more about how many funds you should have in your portfolio, you can read another post of ours- https://www.wishfin.com/mutual-fund/how-many-funds-should-be-in-a-portfolio/