Multicap mutual funds make 4 types of investments. Along with large caps, focus is also on small and midcaps. This mutual fund gives good returns without risk.
New Delhi. If you want a good return and want to make a balanced investment then multicap fund can be a better instrument for you. This is a scheme that invests in all market caps, largecap, midcap and smallcap. While large cap shares provide protection in market decline, mid and small cap shares play an important role in providing profits. No single market cap can outperform consistently. Therefore, investors should invest in all market caps under asset allocation.
On an annual basis, the return of Nifty 100 TRI in 2023 has been 21 percent, while the return of Nifty Midcap 150 TRI has been 45 percent. The return of Nifty Smallcap 250 TRI has been 49 percent. The advantage of investing across market caps is that risk and returns are diversified across market capitalization rather than being concentrated in one market capitalization and the risk of loss becomes negligible.
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How to invest multicap
A well-known name in multicap is Axis Mutual Fund. This fund has continuously given better returns to investors since its inception. Largecap invests in big companies while midcap captures the opportunities of midcap companies. Smallcap invests in emerging opportunities, where small companies have the potential to become big in the future. Multicap fund invests 25-25 percent in largecap, midcap, smallcap and dynamic. This means that every penny of yours is invested in four places.
What is the highest return given?
Among the four multicap funds which have given good returns in the last one year, Axis’s Multicap has given the highest return of 56.02 percent. Kotak Multicap scheme has given a return of 52.83%, HSBC scheme has given a return of 51.90% and LIC Multicap scheme has given a return of 51.37%. If someone invested Rs 1 lakh in these funds a year ago, that amount has now become Rs 1.56 lakh.
On which sector did you bet more?
If we talk about multicap of Axis Mutual Fund, then it has invested maximum in financial services, automobile and its parts, capital goods, healthcare, IT, realty and consumer durables. These are all such sectors which provide security to investors in every market environment and give good returns on their investments.
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FIRST PUBLISHED: October 8, 2024, 18:05 IST