Best Multi Cap Funds in 2024: During the last one year, mutual funds falling in the multi cap category have performed brilliantly. The biggest feature of multi cap funds is that their corpus is invested by dividing it into stocks of different market capitalization i.e. large cap, mid cap and small cap. This is the reason why it is considered a very diversified investment option. In the last one year, most of the multi cap funds have given excellent returns, beating their benchmark.
Excellent performance of multi cap funds
Looking at the returns of a total of 23 multi-cap funds in the last one year, it shows that 20 of these funds have performed better than their benchmark. That means almost 90% of the funds outperformed their benchmark. The benchmark of all these funds is Nifty 500 Multicap 50:25:25 Total Return Index (Nifty 500 Multicap 50:25:25 TRI), which had given a return of 24.63% in the last 1 year. Whereas the 1 year return of top 10 multi cap funds has been more than 29%. Among these, the top 9 funds have given returns ranging from 30% to 38%.
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Top 10 multi cap funds giving highest returns in 1 year
Multi cap fund of Axis Mutual Fund has topped the category of multi cap funds giving highest returns in 1 year. Whereas SBI Multicap Fund is at tenth place. All of them have performed better than the benchmark.
1. Axis Multicap Fund
1 Year Return (Regular Plan): 36.41%
1 Year Return (Direct Plan): 38.02%
Asset Under Management (AUM): Rs 7,170.20 crore
2. LIC MF Multi Cap Fund
1 Year Return (Regular Plan): 35.53%
1 Year Return (Direct Plan): 37.78%
Asset Under Management (AUM): Rs 1,477.67 crore
3. Baroda BNP Paribas Multi Cap Fund
1 Year Return (Regular Plan): 35.40%
1 Year Return (Direct Plan): 36.82%
Asset Under Management (AUM): Rs 2,906.65 crore
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4. Invesco India Multicap Fund
1 Year Return (Regular Plan): 34.65%
1 Year Return (Direct Plan): 36.35%
Asset Under Management (AUM): Rs 4,087.11 crore
5. Edelweiss Multi Cap Fund
1 Year Return (Regular Plan): 33.77%
1 Year Return (Direct Plan): 35.94%
Asset Under Management (AUM): Rs 2,694.61 crore
6. HSBC Multi Cap Fund
1 Year Return (Regular Plan): 33.33%
1 Year Return (Direct Plan): 35.10%
Asset Under Management (AUM): Rs 4,592.97 crore
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7. WhiteOak Capital Multi Cap Fund
1 Year Return (Regular Plan): 32.74%
1 Year Return (Direct Plan): 34.97%
Asset Under Management (AUM): Rs 1,495.10 crore
8. Kotak Multicap Fund
1 Year Return (Regular Plan): 32.90%
1 Year Return (Direct Plan): 34.61%
Asset Under Management (AUM): Rs 16,602.44 crore
9. Nippon India Multi Cap Fund
1 Year Return (Regular Plan): 30.90%
1 Year Return (Direct Plan): 31.96%
Asset Under Management (AUM): Rs 40,311.94 crore
10. SBI Multicap Fund
1 Year Return (Regular Plan): 27.99%
1 Year Return (Direct Plan): 29.03%
Asset Under Management (AUM): Rs 19,353.57 crore
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What are multi cap funds?
In multi cap funds, it is necessary to invest at least 75% in equity and equity related instruments. As per SEBI guidelines, multi cap funds have to invest at least 25% of their investment in large cap stocks, 25% in mid cap stocks and the same 25% in small cap stocks. Although this is a great option for diversification and long-term wealth creation, these funds can be quite risky in the short-term due to the investment being at least 50% in small caps and mid caps combined. This is the reason why these funds are considered very high risk on the riskometer.
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For which investors is this option right?
Multi cap funds can be the right option for those investors who want to invest for a long term i.e. at least 5-7 years and are ready to take high risk. If you are looking for a low-risk option or are looking to invest for the short-term, these funds may not be right for you. Investors must assess their investment objectives and risk tolerance before investing in these funds.
(Disclaimer: This article is for information only. The past performance of any mutual fund is not a guarantee that it will continue in the future. Before investing, please consult an investment advisor.)
