Multi Cap Funds News Today

Equity mutual fund categories in April had varying performances. Small cap funds led, while mid cap, contra, and multi cap funds also showed good results. Additionally, value funds and tax saving or ELSS funds performed well in the said period.

Multi-cap mutual funds can serve as a beneficial tool for investors aiming for diversification and long-term capital appreciation through a single investment.

Multi cap mutual funds invest a minimum of 75 percent in equity & equity related instruments with 25 percent in each of the three categories of market capitalisation i.e., small cap, mid cap and large cap.

Investors can participate with a minimum SIP of Rs 2,500 and in multiples of Rs 1 thereafter

Feroze Azeez says: “In a year like this one, large and mid cap is going to outperform large cap because there has been a broader market rally unlike the last few years. If the broader market rally continues, which is likely if governance or government continues, mid cap and the broader market should continue the performance.”

The multi cap schemes are benchmarked against Nifty500 Multicap 50:25:25 - TRI. The benchmark offered 28.81% in 2023.

An investment of ₹1 lakh in Quant Active Fund would have grown to ₹8 lakh in ten years’ time. A similar amount of investment in Invesco India Multicap Fund would have fetched a return of ₹5.40 lakh in 10 years

Mutual funds were busy launching new schemes or NFOs in 2023. Investors happily joined the party.

The stock market was upbeat in 2023. The positive mood resulted in higher inflows in equity schemes. Seven equity categories got over Rs 10,000 crore in 2023.

Since January 2021 when AMFI started providing data for these categories, multi cap funds attracted a cumulative inflow of Rs 58,373.8 crore compared with Rs 48742.2 crore in the flex cap funds.