Multi Cap Mutual Funds

Multi Cap Mutual Funds

These are the equity or equity related investment options, where they invest their portfolio of the equity in the companies with different market capitalization. Investment is always a puzzle for many of us, as we know some investment options comes with risks but offer good returns, some offer minimal returns but less risk, many people tend to select the investment option based on their risk tolerance. Unlike the Large Cap, Mid Cap and Small Cap funds, the Multi Cap Funds offers variant feature all bringing together at a single platform. When an investor invests in Large/Mid/Small Cap Funds, he or she is restricted, the fund manager of any of the funds cannot invest in other shares, but the multi cap funds offers many offers and is lucrative to invest across the market spectrum, multi cap funds are the better option of investment for every individual as this scheme syncs with every financial need, unlike the other mutual fund schemes.

What are the types of Multi Cap Funds?

This scheme is classified into 3 types namely-

Focus on Large Cap Funds:

This type of mutual funds allows you to invest in Large Cap funds and allows you to invest in the other investment segments like mid/small cap funds.

Focus on Small/Mid Cap Funds:

It allows the investor to invest in Small or Mid cap funds also offers the lucrative opportunity to save in large cap funds.

Independent of Market Capitalization:

This scheme offers good opportunity across the market depending upon the market performance, this protects the investor from any downsides.

What are the returns offered by Multi Cap Funds?

Depending upon the tenure with reference to equity schemes and S&P BSE Sensex index-
• For 1 year - 28.87%
• For 3 years - 7.84%
• For 5 years - 11.85%
• For 7 years - 8.30%

What are the features of Multi Cap Funds?

About the Fund Manager:

Before investing in these funds, investor must know about the fund manager as the fund manager takes the decision, if the decision of the manager goes wrong it will also affect the investor.

Know the Concentration of Portfolio:

Know the portfolio concentration before investing as it gives a picture of diversification. This helps you stay safe from any risk.

Tax implications:

Investors remember, this scheme implies tax on the capital gain tax, dividend distribution taxed. So, whatever you gain a portion of that will be deducted in the form of tax.

Bottom Line:

Investor looking for diversified and lucrative investment options, also as it is the sync of large cap/mid and small cap funds, Multi Cap Funds are the better option for this type of investors. But one should know the features related with this investment scheme.