Best Multi Cap Mutual Funds Investment in 2024
Updated on June 27, 2024
Written by Manish Kothari
CEO Zfunds
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Best Multi Cap Mutual Funds for 10 Years
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Understanding Multi Cap Mutual Funds:
Multi Cap Mutual Funds fall within the category of equity mutual funds and are characterized by their diversified portfolio across companies of varying market capitalizations. Unlike specific-cap funds such as large-cap, mid-cap, or small-cap funds, Multi Cap funds do not have a rigid mandate to invest in a specific capitalization segment. Instead, they have the flexibility to allocate funds across companies of different sizes.
Top Performing Multi Cap Mutual Funds to Invest in 2024
Multi Cap Funds are those mutual funds that invest across different market capitalization categories. They are not obligated to invest a certain proportion of their assets in any particular category.
Market Capitalization is defined as the market value of all outstanding shares and is achieved by multiplying the total number of shares outstanding by the market price per share.
Some of the characteristics of a multi-cap fund are as follows:
- They provide diversification since they invest across large caps, mid-caps, and small caps
- Lower expected volatility
- Suitable for investors with a medium investment horizon
- Suitable for investors with medium risk appetite
- The fund manager has the leeway to increase allocation to a particular category based on market view
Top 8 Multi-Cap Mutual Funds in 2024
The following are the top-rated multi cap funds as per Zfunds scoring for the quarter ended 30th June 2020. The funds with the highest ZF Score (refer to methodology here) are ranked at the top. A complete list of funds can be seen in the Annexure at the end of this article.
| Fund Name | 3-Year Return (%) | 5-Year Return (%) |
|---|---|---|
| Nippon India Multi Cap Fund | 38.8 | 17.4 |
| Quant Active Fund | 34.5 | 23.2 |
| Kotak India Growth Fund | 32.3 | 20.3 |
| Mahindra Manulife Multi Cap Fund | 31.4 | 19.0 |
| ICICI Pru Multicap Fund | 29.0 | 14.2 |
| Baroda BNP Paribas Multi Cap Fund | 28.3 | 15.3 |
| Invesco India Multicap Fund | 27.4 | 13.7 |
| Sundaram Multi Cap Fund | 23.8 | 13.2 |
📊 Understanding the Data:
- Top Performers: Nippon India Multi Cap Fund and Quant Active Fund stand out with impressive returns over both 3 and 5 years.
- Consistent Growth: Kotak India Growth Fund showcases steady performance over the years.
- Stability in Returns: Mahindra Manulife Multi Cap Fund maintains a balanced approach with notable returns.
- Long-Term Potential: ICICI Pru Multicap Fund and Baroda BNP Paribas Multi Cap Fund exhibit potential for long-term growth.
- Strategic Choices: Invesco India Multicap Fund and Sundaram Multi Cap Fund offer strategic investment opportunities.
Let's have a closer look
👉1.) Nippon India Multi Cap Fund
The Nippon India Multi Cap Fund is a popular mutual fund option in India, offering the potential for capital appreciation and long-term growth through diverse equity investments. Here's some key information about the fund:
Other key information:
- Asset Under Management (AUM): ₹22,695 Cr.
- Expense Ratio: 1.67%
- Risk Grade: Very High
- Minimum Investment: ₹100 (SIP) or ₹100 (Lumpsum)
- Exit Load: 1% if redeemed within 12 months (for investments > 10%)
👉2.) Quant Active Fund
The Quant Active Fund is another multi-cap mutual fund option in India, also aiming for long-term capital appreciation and growth through equity investments. Here's some key information about it:
Other key information:
- Asset Under Management (AUM): ₹6,681 Cr. (smaller than Nippon India)
- Expense Ratio: 1.81% (slightly higher than Nippon India)
- Risk Grade: Very High
- Minimum Investment: ₹1000 (SIP) or ₹5000 (Lumpsum)
- Exit Load: 1% if redeemed within 15 days (slightly stricter than Nippon India)
👉3.) Kotak India Growth Fund
There are several different Kotak India Growth Funds, with different series and launch dates. To provide you with the most accurate information, it would be helpful to know which specific series you're interested in. Some of the options include:
- Minimum Investment: Varies depending on the series, typically ranging from ₹500 to ₹5000.
- Exit Load: Applicable only for closed-ended series, typically 1% within 1 year of investment.
- Awards and Recognition: KIGF has received various awards and accolades for its performance over the years.
👉4.) Mahindra Manulife Multi Cap Fund
The Mahindra Manulife Multi Cap Fund is another interesting option in the multi-cap category.Invests in a mix of large, mid, and small-cap stocks with a current allocation of around 27% large-cap, 21% mid-cap, and 34% small-cap.
Other key information:
- Asset Under Management (AUM): ₹6,998 Cr.
- Expense Ratio: 1.55% (Regular Plan) and 1.27% (Direct Plan)
- Risk Grade: Moderate to High
- Minimum Investment: ₹500 (SIP) or ₹1000 (Lumpsum)
- Exit Load: 1% if redeemed within 1 year (for investments > 10%)
👉5.) ICICI Pru Multicap Fund
The ICICI Pru Multicap Fund has been a popular choice for long-term capital appreciation through equity investments across market capitalizations.Mandated to invest at least 25% of its assets in each of large, mid, and small-cap stocks, providing diversification across market segments.
Other key information:
- Asset Under Management (AUM): ₹9,515 Cr.
- Expense Ratio: 1.82% (Regular Plan) and 1.22% (Direct Plan)
- Risk Grade: Moderate to High
- Minimum Investment: ₹500 (SIP) or ₹1000 (Lumpsum)
- Exit Load: 1% if redeemed within 1 year (for investments > 10%)
👉6.) Baroda BNP Paribas Multi Cap Fund
Baroda BNP Paribas Multi Cap Fund is to generate capital appreciation and provide long-term growth opportunities by investing in a diversified portfolio of equity and equity-related securities across large, mid, and small-cap companies.
Other key information:
- Asset Under Management (AUM): ₹2,022.13 Cr.
- Expense Ratio: 2.09% (Regular Plan) and 1.69% (Direct Plan)
- Risk Grade: Very High
- Minimum Investment: ₹500 (SIP) or ₹1000 (Lumpsum)
- Exit Load: 1% if redeemed within 1 year (for investments > 10%)
👉7.) Invesco India Multicap Fund
Looking for a diversified, actively managed mutual fund to unleash long-term capital appreciation in the Indian market? Look no further than the Invesco India Multicap Fund. This powerhouse fund navigates across large, mid, and small caps, seeking hidden gems with high growth potential.
Other Key Information:
- Asset Under Management (AUM): ₹2,894.53 Cr. (as of December 25, 2023)
- Expense Ratio: 1.94% (Direct Plan)
- Risk Grade: Very High
- Minimum Investment: ₹500 (SIP) or ₹1000 (Lumpsum)
- Exit Load: 1% if redeemed within 1 year (for investments > 10%)
Watch Multi Cap Mutual Fund Video Here :
Why Choose Multicap Mutual Funds?
Multicap mutual funds are an excellent choice for investors looking for a diversified investment portfolio. With their ability to invest in stocks across different market capitalizations, these funds provide investors with flexibility and the potential for high returns. Here are some reasons why multi-cap mutual funds are a great investment option:
⇛ ⇛ Diversification: One of the primary benefits of multi-cap mutual funds, such as Nippon India Multi Cap Fund, is that they offer diversification across market capitalizations. This means that these funds invest in stocks of companies across different sizes, from small cap to large cap. By investing in a mix of companies, multicap funds reduce the risk of concentration in any particular sector or size of companies, thus lowering overall portfolio risk.
⇛ ⇛ Potential for High Returns: Multicap mutual funds have the potential to generate high returns since they invest in companies across different market capitalizations. Small-cap companies, for instance, have the potential to grow at a much faster pace than larger, more established companies. Therefore, by investing in small-cap companies, multicap funds can potentially generate higher returns.
⇛ ⇛ Flexibility: Unlike other mutual funds that are restricted to investing in a specific category of companies, multicap mutual funds like Invesco India Multicap Fund have the flexibility to invest in companies across different market capitalizations. This flexibility allows fund managers to adjust the portfolio to take advantage of market conditions, which can result in better returns.
⇛ ⇛ Dynamic Portfolio Management: Multicap mutual funds offer dynamic portfolio management, as fund managers can adjust the portfolio to take advantage of market trends. This means that fund managers can increase exposure to companies that are expected to perform well and reduce exposure to companies that are expected to underperform.
⇛ ⇛ Low Expense Ratios: Multicap mutual funds, such as ICICI Prudential Multicap Fund and others, often have lower expense ratios than actively managed funds that invest in a single market capitalization. This is because multicap funds can invest in a range of stocks and do not need to pay for multiple funds to cover different market caps.
Start investing in multicap mutual fund schemes on ZFunds today. Our experts can help you pick the right MFs as per your risk appetite and financial goals.
Multi-Cap Vs Small Cap Vs Large Cap Mutual Fund
| Aspect | Multi Cap Funds | Small Cap Funds | Large Cap Funds |
|---|---|---|---|
| Investment Focus | Diversified portfolio across various market segments | Primarily invests in small-cap companies | Focuses on investing in large-cap companies |
| Diversification | Offers moderate diversification | May have limited diversification | Potential for less diversification compared to multi cap |
| Risk and Returns | Balanced risk and potential returns | Higher risk, potential for greater returns | Lower risk, potential for moderate returns |
| Growth Potential | Aims to capture growth across market segments | Seeks higher growth in small-cap companies | Stable growth potential in established companies |
| Market Flexibility | Flexibility to adapt to changing market conditions | More susceptible to market volatility | May be less adaptable to rapidly changing markets |
| Investment Horizon | Suitable for short, medium, and long-term goals | Better suited for long-term goals | Suitable for long-term investment goals |
| Volatility | Moderate volatility due to diversified portfolio | High volatility due to small-cap exposure | Relatively lower volatility due to large-cap focus |
| Risk Management | Balanced risk due to diversified holdings | Requires strong risk management strategy | Risk management typically associated with large caps |
| Fund Size and AUM | May have varying fund sizes and AUM | Typically smaller fund sizes and AUM | Often have larger fund sizes and AUM |
| Historical Performance | Performance varies based on market cycles | Potential for significant outperformance in bull markets | Generally stable and more consistent performance |
| Suitability | Suitable for investors seeking diversified exposure | Suited for aggressive investors seeking higher returns | Ideal for conservative investors seeking stability |
| Fund Manager Expertise | Requires expertise in managing diverse portfolio | Demands strong understanding of small-cap companies | Focuses on established large-cap companies |
How to Invest in Multi Cap Funds: A Step-by-Step Guide
1. Invest through the ZFunds App:
The ZFunds app provides a user-friendly platform to invest in mutual funds. Download the best mutual fund app, create an account, complete the KYC process, and explore a wide range of mutual fund options. The app offers convenience, real-time tracking, and easy investment management, making it an excellent choice for modern investors.
2. Online Investment Platforms:
Apart from the ZFunds app, there are other online investment platforms available, such as investment brokerage websites and financial service apps. These platforms allow you to research, compare, and invest in mutual funds with ease.
3. Fund Houses' Websites:
Most mutual fund companies have their official websites where you can directly invest in their funds. Visit the website of the fund house you're interested in, create an account, complete the necessary formalities, and start investing.
4. Mutual Fund Advisors:
Consulting a mutual fund advisor is a traditional yet effective way to invest in mutual funds. These professionals possess expertise in financial planning and investment strategies. Mutual fund advisors can provide personalized investment advice tailored to your financial goals, risk tolerance, and investment horizon. They assess your individual needs and recommend suitable mutual fund options that align with your overall financial plan.
5. Banks and Distributors:
Many banks and financial distributors offer mutual fund investment services. Visit your local bank branch or a distributor's office to learn about the mutual fund options they offer and get assistance in the investment process. Mutual fund distributors are trained professionals who can help you navigate the various mutual fund choices available. They can provide insights into different funds, guide you through the investment process, and offer recommendations based on your investment preferences and objectives.
Faqs
Q: How do Multi Cap Funds differ from other equity fund categories?
A: Unlike specialized equity funds like small cap and large cap funds, Multi Cap Funds do not have a fixed mandate to invest only in specific market segments. They have the flexibility to allocate funds dynamically based on market conditions, aiming for a balanced risk-return profile.
3. Q: Who should consider investing in Multi Cap Funds?
A: Multi Cap Funds are suitable for a wide range of investors. They are ideal for those seeking diversified exposure to different market segments and looking for a balanced mix of growth potential and risk mitigation. They can be particularly beneficial for investors with medium to long-term investment horizons.
More Information:
Best Large Cap Mutual Funds to Invest in India
Best Small Cap Mutual Funds to Invest in India
What is Expense Ratio in Mutual Funds