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 2023

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
Fund manager has the leeway to increase allocation to a particular category based on market view

Multi-cap mutual fund schemes have become a popular investment option lately. These are suitable for individuals looking to diversify their portfolios and invest in companies of different market capitalizations and sectors. Multi-cap mutual funds invest in a mix of large-cap, mid-cap, and small-cap stocks, providing a balanced exposure to different segments of the market. The multi-cap mutual fund category has gained popularity over the years due to its flexibility and potential for higher returns. If you are looking for the best multi-cap mutual funds available in the market, their performance history, and their suitability for different investment goals. You can invest in these multi-cap funds on ZFunds and earn lucrative returns on your investments. Kick-start your multi-cap mutual fund investment 2023 journey today!

Top Rated Multi-Cap Mutual Funds

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	Fund Size (Crores)	3-Year Return (%)	5-Year Return (%)
Nippon India Multi Cap Fund	17,440	38.8	17.4
Quant Active Fund	4,787	34.5	23.2
Kotak India Growth Fund	104	32.3	20.3
Mahindra Manulife Multi Cap Fund	1,844	31.4	19.0
ICICI Pru Multicap Fund – Direct Growth	7,972	29.0	14.2
Baroda BNP Paribas Multi Cap Fund	1,804	28.3	15.3
Invesco India Multicap Fund	2,586	27.4	13.7
Sundaram Multi Cap Fund	146	23.8	13.2

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.

Let's have a closer look

👉 ICICI Prudential Multicap Fund Growth

The fund has been ranked top due to its potential to provide capital appreciation over the long term. Though the fund has not performed consistently but given its high valuation score, it has been placed at the top. Also, the fund has decent scores in parameters of concentration & consistency in generating alpha in the last 5 years. Amfi launched new campaign which is mfd ( mfd full form in mutual funds stand for mutual fund distributor business) business it helps to distributor can start mutual fund distributor business online.

A good choice for long term investments.

Rs. 10,000 invested in August 2015 would have been approx. Rs.12,600.
Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 63,834.

👉 Kotak Standard Multi-Cap Fund

The fund has ranked highest in terms of consistency (i.e generating alpha in the last 5 years) among the others in the category. Moreover, it is one of the highest rankers in the parameter of volatility as per our ZFunds Ratings.

Kotak Standard Multi cap has the largest AUM in the Multi-Cap Category. The fund has been able to consistently outperform its benchmark as well as category average returns over the long periods.

A good option for long term investments.

Rs. 10,000 invested in August 2015 would have been approx. Rs.14,600.
Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 70,433.

Also Read : MFD Business

👉 HDFC Equity Fund

Though not a top-performing fund in the category, the fund has the highest valuation score in the category. Also, the fund has one of the highest scores in the parameter of volatility as per our ZFunds Ratings.

Rs. 10,000 invested in August 2015 would have been approx. Rs.12,400.
Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 63,483.

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