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What are Multi Cap Funds?

Mutual Funds44 views

Highlights

  • Most divesre equity funds in the market are the multi cap funds.
  • Some multi cap mutual funds have generated 5-year return upto 15%.

Multi cap funds are those equity schemes whose portfolio comprises of all sorts of stocks from large cap to mid cap to small cap. If multi cap was a country, it would definitely be India; known for its diversity. It invests in the stocks of companies that differ in market capitalization like large cap, mid cap and small companies. It is one of the most popular investment options in the Indian Mutual Fund industry.

Recommended Multi Cap Funds to Invest In!

Fund Name1-Year Return 3-Year Return 5-Year return  
DSP Focus Fund-5.80%4.99%9.67%
SBI Magnum MultiCap Fund-2.13%7.96%12.97%
Motilal Oswal Multicap 35 Fund-9.30%8.03%15.17%
Axis Focused 25 Fund-5.95%11.55%13.36%
Aditya Birla Sun Life Equity Fund-5.42%7.48%10.67%

Note: All the data that has been mentioned in this articleis sourced from Value Research as on Aug 4, 2019. Also, this data is in regards to Regular Plan.

For Whom is the Multi Cap Fund Suitable?

Before one should invest in multi cap fund, investors should evaluate their risk profile. If you are someone with a very low risk appetite, this fund is not suited for you. Investors with moderate risk and risk taking capacity should definitely consider investing in multi cap equity schemes. These schemes lies in between large cap and mid/small cap funds, when it comes to risk profile. Returns offered by mid cap funds are exceptional than large cap funds and, less than mid cap and small cap funds. New Investors who have a rough idea about mutual funds can invest in these funds as the risk is balanced.

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How Risky is it to Invest in Multi Cap Funds?

As clearly mentioned, multi cap funds are the most diverse option in the mutual fund universe. Obviously, the risk is going to be less as compared to equity investments that predominantly invest in mid cap and small cap stocks. What keeps the risk profile moderate for multi cap investments is its diversity. Even if the returns through mid cap and small cap stocks don’t seem promising, investments in large cap stocks kind of balance the risk and saves the investor from failing miserably.

How to Invest in Multi Cap Funds Online?

If you wish to invest in Multi Cap Funds, you can do so through Wishfin, a financial marketplace, where you can choose the best sector funds for you and rule out the ones that doesn’t seem a great fit by comparing. To invest, all you have to do is follow the below mentioned steps:

  • Log on to www.wishfin.com
  • Go  to ‘Mutual Funds’
  • Click on on ‘Login/Register


If you are a new investor who is keen on investing, you need to follow the below mentioned registration process.

Registration Steps:

  • Mention your mobile number
  • Click on ‘Next’
  • Enter the One-time Password (OTP) received on your mobile number
  • Click on ‘Verify and Continue’
  • Mention full name, email, city
  • Create a password that must have the required number of alphabets, numeric and special characters
  • Click on ‘Sign Up’
  • Mention a few more details before the registration can be made successfully


Login Steps

  • Mention your email or mobile number
  • Click on ‘Get OTP’ to receive the same
  • Enter OTP at the prescribed space
  • Click on ‘Login’
  • Go to ‘Explore Mutual Funds’
  • Go to ‘Equity’ and then on to ‘Multi Cap Funds’
  • Click on ‘Invest’ below any of the sector funds shown above


Disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.