PremiumInvesting in multi cap funds is preferable, whether the market is bullish or bearish, since the fund manager invests in all sectors of the market, including large, mid, and small caps, giving an investor a better portfolio diversification to achieve risk-adjusted returns.
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Investing in multi cap funds is preferable, whether the market is bullish or bearish, since the fund manager invests in all sectors of the market, including large, mid, and small caps, giving an investor a better portfolio diversification to achieve risk-adjusted returns. The fund manager adjusts the percentage of the fund allocated to large cap, mid cap, and small cap stocks based on market conditions. The Nifty 50 has made corrections over the previous five days, as the 50-scrip index has moved within the 12 days, 20 days, 26 days, 50 days, 100 days and 200 range, but volatility is likely to persist as the Nifty 50 remains below its five-day, ten-day, twenty-day, fifty-day, hundred-day, and 200-day moving averages. The Nifty Midcap 150 index is down approximately 17 per cent from its all-time high, while the Nifty Small-cap 250 index is still in bearish territory, down -15.53 per cent YTD. Markets may be turbulent in the near term, so investing in equities for the long term with a well-diversified portfolio is a solid option. In a recent research study, the brokerage company Nirmal Bang stated that “The core portfolio for a long term equity investor should consist of diversified equity funds primarily being market cap and sector agnostic with a prime focus on long term wealth creation. Investors looking to invest in equities should go via staggered manner using the SIP route or SWP for next 6-9 months." So here are the two multi-cap funds that have generated above 50% SIP returns in the previous three to five years.
Quant Active Fund Direct-Growth is a multi-cap fund that was established on January 7, 2013, and it now has ₹2,300 crores in assets under management (AUM) as of March 31, 2022, with a NAV of ₹402.64 as of May 25, 2022. The fund has a low expense ratio of 0.58 per cent, and last year's Quant Active Fund Direct-Growth returns were 11.14 percent, and it has provided 19.80 per cent average annual returns since its inception. Services, Healthcare, Metals & Mining, Consumer Staples, Financials, and other sectors are all handled in the fund. Vedanta Ltd., ITC Ltd., State Bank of India, Ruchi Soya Inds. Ltd., Adani Ports and Special Economic Zone Ltd. are the fund's top five holdings.
| Period | Absolute Returns | Annualised Returns |
| 1 Year | -2.12 % | -3.92 % |
| 2 Year | 34.06 % | 31.08 % |
| 3 Year | 65.29 % | 35.55 % |
| 5 Year | 92.16 % | 26.47 % |
| Data as of 25th May, 2022, Source: moneycontrol.com |
Mahindra Manulife Multi Cap Badhat Yojana Direct-Growth was established on May 11, 2017 and has ₹1,151 crores in assets under management (AUM) as of March 31, 2022, with a NAV of ₹20.48 as of May 25, 2022. Mahindra Manulife Multi Cap Badhat Yojana Direct has an annualised growth rate of 11.17 per cent. It has had an average yearly return of 15.29 per cent since its inception. The fund has asset allocation across Financial, Energy, Capital Goods, Consumer Staples, Technology sectors and the fund's top 5 holdings are in State Bank of India, ICICI Bank Ltd., ITC Ltd., Reliance Industries Ltd., Infosys Ltd.. The fund has a low expense ratio of 0.5%.
| Period | Absolute Returns | Annualised Returns |
| 1 Year | -4.15 % | -7.62 % |
| 2 Year | 25.47 % | 23.54 % |
| 3 Year | 43.74 % | 25.06 % |
| 5 Year | 62.21 % | 19.44 % |
| Data as of 25th May, 2022, Source: moneycontrol.com |