What are Multi-Cap Funds
Multi-cap funds are mutual funds that invest in stocks across different market capitalisations, including large-cap, mid-cap, and small-cap companies. These funds aim to provide investors with a balanced portfolio by diversifying their investments across multiple sectors and market segments. With multi-cap funds, investors can benefit from the growth potential of small and mid-cap stocks while enjoying the stability of established large-cap companies. This diversification strategy allows investors to take advantage of different market cycles and potentially maximise their returns.
Features of Multi-Cap Funds
Dynamic asset allocation
Long-term investment
Higher risk
Benefits of Investing inMulti-Cap Mutual Funds
- Broad market exposure
Flexibility and adaptability
Benefit from portfolio diversification
Steady return potential over long term
Who Should Invest inMulti-Cap Funds
Conservative InvestorsMulti-Cap Value Funds, as these funds focus on stable, well-established companies with consistent earnings and dividends.
Moderate InvestorsMulti-Cap Blend Funds, as these funds strike a balance by investing in a mix of large-cap, mid-cap, and small-cap stocks.
Aggressive InvestorsMulti-Cap Growth Funds, which predominantly focus on mid-cap and small-cap stocks to target higher growth potential, albeit with increased risk.
Top Performing mutual funds
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FAQs
Multi-cap funds are generally recommended for long-term investment horizons of five years or more to capture growth potential adequately. While short-term investments can be subject to market volatility, investors with a high-risk tolerance may consider allocating a portion of their portfolio to multi-cap funds for potential capital appreciation.