Top 5 multi cap funds

The fastest growing Indian mutual fund industry offers various investment avenues to the investors. Multi-cap funds are one of them and stands as an unique offering. Multi-cap funds are diversified equity funds which invest across different market capitalisations in varying proportion to meet the investment objectives.

With the new categorisation and reclassification circular issued by SEBI, multi-cap funds are expected to invest 65 per cent of the corpus into the equity and equity-related instruments. These funds enjoy the freedom of investment across various market caps which makes them more attractive.

In the current market scenario, investing into the pure small-cap and mid-cap will be bit risky. However, large cap schemes are expected to be the safer one. But large cap funds reap returns in a steady manner. So multi-cap funds forms a interesting investment avenue for the investors.

To arrive at the best multi-cap funds we have analysed all the multi cap schemes having assets more than Rs. 500 crore. According to our data analysis, below-mentioned schemes are the top performers in the last one year among the equity multi-cap category.

Further, we have evaluated portfolios of all the top performers to analyse the allocation among the various caps. All the schemes invest around 40-50 per cent of the corpus in the blue-chip stocks and remaining into the other market cap stocks. With this investment strategy, these funds seem to be safe and promising in terms of returns in the near term.