Top 5 Multi-Cap Funds with the Highest SIP Returns in the Past 1 Year!
Unlike funds that focus on a specific segment of the market, multi-cap funds aim to provide a diversified portfolio by investing in companies of different sizes.
Planning to start a monthly SIP? Let’s explore this category of mutual funds together. Multi-cap funds are a type of mutual fund that invests across various market capitalizations—Large-Cap, Mid-Cap, and Small-Cap stocks. Unlike funds that focus on a specific segment of the market, multi-cap funds aim to provide a diversified portfolio by investing in companies of different sizes. This diversification helps to spread risk and capture potential growth opportunities across the market spectrum.
According to SEBI's guidelines on Categorization and Rationalization of Mutual Fund Schemes, Multi-Cap Funds are required to allocate at least 75 per cent of their assets to investments in equity and equity-related instruments.
Here are the top 5 multi-cap funds that delivered the highest returns in the past 1 year:
| Top Performing Systematic Investment Plan in Multicap Fund |
| Scheme Name |
AUM (Rs in Crore) |
Expense Ratio Per cent |
Invested Amount Rs |
Current Value Rs |
Return Per cent |
| LIC MF Multi Cap Fund Reg Gr |
1,184.68 |
2.11 |
36,000 |
43,992.24 |
52.34 |
| Kotak Multicap Fund Reg Gr |
13,203.49 |
1.66 |
36,000 |
43,356.96 |
47.90 |
| Axis Multicap Fund Reg Gr |
5,974.42 |
1.82 |
36,000 |
43,009.27 |
45.50 |
| Nippon India Multi Cap Gr Gr |
34,899.07 |
1.58 |
36,000 |
42,887.59 |
44.66 |
| HSBC Multi Cap Fund Reg Gr |
3,553.97 |
1.92 |
36,000 |
42,865.31 |
44.50 |
Risk Involved
When evaluating multi-cap mutual funds, it's important to recognize that these funds generally have a moderate risk-return profile. Multi-cap funds can outperform large-cap and mid-cap funds during rising markets, as they benefit from gains across large-cap, mid-cap, and small-cap stocks. However, in downturns, they may not offer the same level of protection as large-cap funds, which typically provide a buffer against significant losses. Over the long term, multi-cap funds tend to be less volatile compared to mid-cap funds but carry more risk than large-cap funds.
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Multicap Funds Are Best For:
Multi-cap mutual funds are well-suited for the following types of investors:
- Investors Seeking Convenience: Those who prefer not to spend time analyzing and selecting individual stocks or funds will benefit from the diversification and professional management offered by multi-cap funds.
- Investors with Moderate Risk Tolerance: These funds are appropriate for individuals with a moderate risk appetite, as they offer balanced exposure to various market capitalizations and sectors.
- Investors Aiming for Diversification: Multi-cap funds are ideal for investors looking to diversify their portfolios. By investing in a mix of large-cap, mid-cap, and small-cap stocks across different sectors, these funds provide broad market exposure and the potential to capture growth opportunities across various segments.
Conclusion
Equities are known for their high volatility and can generate multibagger returns. Mutual funds, on the other hand, offer consistent performance and a hassle-free investment experience. By investing a small portion of your salary regularly, you can build substantial wealth over time. The key is to maintain consistent investments through various market cycles to benefit from averaging and to exercise patience.
Multi-cap funds have the added advantage of investing across different company sizes, providing diversified exposure and potential growth opportunities. Multi-cap funds are ideal for investors looking to diversify their portfolios. By investing in a mix of large-cap, mid-cap, and small-cap stocks across different sectors, these funds provide broad market exposure and the potential to capture growth opportunities across various segments.
Disclaimer: The article is for informational purposes only and not investment advice.