Best Multicap mutual fund are a type of equity fund and it is considered to be an open-ended equity scheme that invests across the small-cap, mid-cap, and large-cap stocks.
These types of funds have less risk compared to mid-cap and small-cap funds. It is also prevalent in investors who are not aggressive in terms of returns.
The fund manager has the independency to pick stocks across the sectors. So, the managers won’t miss anything about the market.
They are also able to switch their holdings in funds between small-cap, mid-cap, and large-cap stocks. Moreover, as these types of funds are mainly invested in multi-cap organizations or companies, they deliver amazing returns.
This happens as during the bull market these underlying funds can unlock the values and can tap into the growth opportunities.
If you want to know more about the best multicap funds to invest in 2022, then click on the below link.
List Of best multicap mutual fund (2022)
Want to jump straight to my top picks? My favorite multicap fund is Mahindra Manulife Multicap Badhat Yojana (G) and Baroda BNP Paribas Multicap Fund (G).
Now let’s talk about some of the best multi-cap funds schemes.
1. Mahindra Manulife Multicap Badhat Yojana (G)
It is a well-known scheme as Mahindra Manulife Multicap Badhat Yojana gave a 21.44% annual return in the past three years and also gave a return of 15.65% in the last five years.
This fund mainly belongs to the Mahindra Mutual Funds’ equity category.
The required investment amount of the Mahindra Multicap Badhat Yojana is Rs.1000 and if you want to invest via SIP, then you have to give Rs500.
The AUM of the Mahindra Manulife Multicap Badhat Yojana is Rs. 1151 Cr. The 1-year return percentage is 11.8%.
2. Baroda BNP Paribas Multicap Fund (G)
The Baroda BNP Paribas multicap fund also belongs to the Baroda Mutual Funds’ equity category.
It is a famous scheme that gave a 16.36% annual return in the past three years. They also gave an 11.75% annual return in the last five years.
The required investment amount of the Baroda BNP Paribas Multicap Fund is Rs. 5000, and if you want to invest via SIP, then the required amount is Rs. 500.
The AUM of the Baroda BNP Paribas Multicap Fund is Rs. 1672 cr. The 1-year return percentage is 11.7%.
3. Quant Active Fund
The Quant Active Fund belongs to the category of equity of the Quant Mutual Fund.
It has given a 28.55% of annualized return in the past three years. They also have given an annualized return of 21.735 in the past five years.
The minimum amount that is mainly required to invest in the Quant Active Fund is Rs.5000 and if anyone invests via SIP, they need to pay Rs. 1000.
The AUM of the Quant Active Fund is Rs. 2300 cr. The 1-year return percentage here is 12.4%.
4. Sundaram Multicap Fund (G)
The Sundaram best multicap mutual funds have given an annualized return of 13.01% in the last three years and also have given 11.4% in the last five years.
It is a Multicap mutual fund that comes under the category of equity.
The minimum required amount for Sundaram Multicap Fund is Rs. 300 and you have to pay Rs. 100 if you invest via SIP.
The AUM of the Sundaram Multicap Fund is Rs. 1808 cr. Here, the 1-year return percentage is 9.2%.
5. Invesco India Multicap Fund (G)
The Invesco India multicap fund comes under the equity category.
In the last three years, they have given a 15.9% annualized return and in the past five years, they have given an 11.54% annualized return.
If you invest in the Invesco India Multicap Fund via the SIP you have to give Rs. 500 and via lum sum, you have to give Rs. 1000.
The AUM of the Invesco India Fund is Rs. 1859 cr. The 1-year return percentage is 3.0% here.
6. ICICI Prudential Multicap Fund
The performance of the ICICI Prudential multi cap mutual funds in the last three years is 11.65%.
On the other hand, the performance of the fund in the past five years is 11.29%. The ICICI Prudential Multicap Fund is also one of the equity funds of the ICICI Prudential Multicap Mutual Fund.
The minimum amount of investment that is mainly required in ICICI Prudential Multicap Fund is Rs. 5000 via lum sum and if you invest via SIP then the required amount is Rs. 100.
The AUM of the ICICI Prudential Multicap Fund is Rs. 6551 cr. The 1-year return percentage of ICICI Prudential Multicap Fund is 5.8%.
7. Nippon India Multicap Fund
The Nippon India Multicap Fund is also categorized as an equity fund of the Nippon India Mutual Fund.
The annualized return percentage in the past three years of the Nippon India Multicap Fund is 11.26% and the percentage for the last five years is 11.85%.
The required amount of the investment in the Nippon India Multicap Fund is Rs. 100 via lum sum and if you invest via SIP then the minimum amount is Rs. 100.
The AUM of the Nippon India Multicap Fund is Rs. 12,105 cr.
The 1-year return percentage of the Nippon India Multicap Fund is 17.9%.
8. Motilal Oswal Nifty 35 Fund (G)
It is a best multicap fund that has a goal to achieve long-term capital by investing in a minimum of 35 companies across the market capitalization.
Motilal Oswal has a fixed strategy to maximize the returns. It is also one of the equity funds of Motilal Oswal Mutual Fund.
The AUM of the Motilal Oswal Nifty 35 Fund is Rs. 11,817 cr. This fund generally charges 1.74% of the AUM.
The minimum amount that has to pay in Motilal Oswal Nifty 35 Fund is Rs. 500 via lum sum. You need to pay Rs. 500 via SIP.
9. ITI Multicap Fund
The ITI Multicap Fund also belongs to the equity category in ITI Mutual Funds.
The minimum amount which is needed to invest here is Rs. 1000 via lum sum. You need to pay Rs. 500 via SIP.
The AUM of the ITI Multicap Fund is Rs. 371 cr. The 1-year return percentage of the ITI Multicap Fund is -9.8%.
10. IDFC Multicap Fund (G)
The IDFC best multicap fund is considered to be a category of the equity fund in IDFC Mutual Funds.
The minimum amount that you need to pay via lum sum in the IDFC Multicap Fund is Rs. 5000 and on the other hand, you need to pay Rs. 1000 through SIP.
The AUM of the IDFC Multicap Fund is Rs. 927 cr.
11. Aditya Birla Sun Life Multicap Fund
The Aditya Birla Sun Life Multicap Fund is also categorized as an equity fund in the Aditya Birla Sun Life Mutual Fund.
To invest in this, the minimum amount that is required is Rs. 500 through lump sum and if you invest via SIP, you also need to pay Rs. 500.
The AUM of the Aditya Birla Sun Life Multicap Fund is Rs. 3488 cr. The 1-year return percentage of the Aditya Birla Sun Life Multicap Fund is 9.9%.
12. UTI Focused Equity Fund Series VI
It is also one of the equity funds of the UTI Mutual Fund.
The minimum amount that you need to pay if you want to invest in the UTI Focused Equity Fund Series VI is Rs.5000 via lump sum. You cannot pay via SIP.
The AUM of the UTI Focused Equity Fund Series VI is Rs. 410 cr. The 1-year return percentage of the UTI Focused Equity Fund Series VI is 63.0%.
13. Kotak Mahindra Multicap Fund (G)
Kotak Mahindra is a multi-cap fund that aims to generate long-term capital by concentrating on some sectors in the market.
They generally identify the sectors that generally perform well and later invest in those sectors.
This fund mainly charges a percentage of 1.62% on the AUM. The AUM of the Kotak Mahindra Multicap Fund is Rs. 34,516 cr.
The minimum amount that is required to invest in the Kotak Mahindra Multi-cap fund is Rs. 500 through SIP, and if you invest via lump sum then you need to pay Rs. 500.
14. Parag Parikh Long Term Equity Fund
Parag Parikh is also considered to be a multi-cap fund that aims to generate long-term capital through its diversified portfolio.
They generally identify the sectors that are generally available at a moderate price as the company does not want to face loss in the market.
This fund mainly charges a percentage of 1.81% on the AUM. The AUM of the Parag Parikh Long Term Equity Fund is Rs. 7452 cr.
The minimum amount that is required to invest in the Parag Parikh Long Term Equity fund is Rs. 1000 through SIP, and if you invest via lump sum then you need to pay Rs. 1000.
15. UTI Focussed Equity Fund Series I
This fund also belongs to the category of equity in the UTI Mutual Fund. They have given 2.93% of the annualized return in the last three years.
In the last five years, they have given 8.87% of the annualized return.
The amount that is required to invest in UTI Focussed Equity Fund Series I is Rs. 10,000 via lump sum. The amount via SIP is Rs.0.
The AUM of the UTI Focussed Equity Fund Series I is Rs. 828 cr. The 1-year return percentage of this fund is 41.4%.
Who Should Invest In Flexi Cap Funds?
In 2020, we all have seen our Indian economy in a continuous recession. It made the growth potential of small-cap and medium-cap companies very short-lived.
So, many companies are now very concerned about the stability of their companies. Flexi cap funds can hold large exposure in the large caps.
But if the market moves in favor of the small-cap and mid-cap, they are redistributed. Flexi Cap Mutual Fund can be the best option for investors with a high-risk appetite.
However, investors must have at least five years of investment horizons. The small-caps in this kind of portfolio sometimes can be volatile, which enhances the risk in your portfolio.
Though, large companies can balance the volatility and can provide the stability by balancing all the risks.
Features Of Multi-Cap Mutual Funds
- Diverse Investment
Multi-cap funds invest a minimum of 65% of their money in the company’s stock. Unlike the mutual funds along with the market cap focus, like the funds of small-cap or small-cap, multi-cap funds can invest in multiple market-caps companies.
It mainly gives you exposure to different stocks as an investor. - Flexibility Of The Fund Manager
The fund managers of Multi-cap mutual funds have the independency to rejig their portfolios that depends on how other different companies are now performing in the market.
In this way, they identify the growth opportunity and can make the sensible investment that can provide the best possible returns. - Risk Management
As multi-cap funds can almost cover the company stocks of various sizes and sectors, they effectively diversify the risk.
Fund managers are able to change fund allocation between these companies depending on the existing market situation. So, it is best for the investors who have medium risk tolerance. - Importance Of The Expertise of Fund Manager
The expertise level of the Fund Manager plays a vital role in the Multi-cap Mutual Funds.
So, you should properly check the Fund Manager’s history as they have the responsibility to decide how to properly allocate small-cap, medium-cap, and large-cap mutual funds.
Benefits of Investing In Mutual Funds
- The Benefits Of Diversification
As multi-cap mutual funds can invest in various sizes of companies and sectors, it offers a diversified portfolio. This diversification automatically lowers your risk.
It is because several companies can perform differently at any time, so through this, you can keep the risk under control. - Broad Exposure To All Sectors
This fund won’t restrict itself to only an individual sector, rather it lets you explore all the companies and sectors that are currently boosting the economic growth.
For this reason, you won’t miss out on any of the opportunities that are available in our Indian market. - Proper Portfolio For The Current Market Condition
The flexibility to decide the mix between the small, mid, and large-cap mainly gives allowance to these funds to change the portfolio composition to suit the market situation.
Taxation Of Multi-Cap Funds
It is important to know about post-tax returns if you are planning to invest in multi-cap mutual funds. You must know how the multi-cap funds usually are taxed.
You can invest in section 80c investments such as Fixed Deposit, ELSS fund, Public Provident Fund, and many more. Two types of taxes are there, one is DDT (Dividend Distribution Tax), and another is capital Gains Tax.
- DDT
Dividends are mainly now taxed in investors’ hands. The dividend that is earned will be added to the investor’s taxable income. The investor is mainly taxed depending on the income tax slab rate. - Capital Gains Tax
The capital gains that result from selling multi-cap funds of yours mainly depend on how long your investment has been. - Short Term Capital Gain Tax
If someone sells their investment within one year then it will be classified as the STCG. Then, they have to pay 15% tax on them. - Long Term Capital Gain Tax
Any multi-cap investment over a period of one year, the profits are called LTCG. Profits up to 1 lakh in any financial year will be tax-free. But over 1 lakh, the profits are taxed at 1%.
Conclusion
Multi-cap funds are suitable for those who have a low-risk appetite since they have less risk compared to the other funds like mid-cap and small-cap funds.
Several opportunities for different investments can help the best Multicap mutual fund to perform much better as you can invest them across categories, unlike the others.
Please remember one thing: we are not recommending you to invest in it; rather , we provided information for those who are interested in investing in it.
Though it mainly offers the diversity in your portfolios and you can consider them if they can align with your risk tolerance, investment horizon, and investment goals.
Frequently Asked Question
Q1. Why should anyone invest in Multi-cap funds?
In multi-cap funds, you can earn a profitable return and the market risk is also moderate here. It provides you an opportunity to gain more by investing in small-cap companies that have higher potential growth.
Q2. Do Multi-cap Mutual Funds have any lock-in period?
If you invest in multi-cap mutual funds, you can simply enter and exit as per your wish. So, multi-cap mutual funds do not have any lock-in period.
Q3. What is the minimum amount that one has to invest in Multi-cap Mutual Funds?
Don’t worry, you do not need to provide a lump sum of money to invest in the multi-cap mutual funds. You can start with Rs.500 to invest in this type of fund.
Q4. What is the average return of multi-cap funds?
As per the value research, the multi-cap mutual funds provide an average return of 40.72% within a year. So, if you are willing to invest in it, go for it as you can benefit from this.
Here are my best picks:
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