Introduction
If you want to diversify your portfolio, multi-cap mutual funds are worth considering. They are a sought-after choice among long-term investors as they invest across large-cap, mid-cap, and small-cap companies. They are the ideal choice if you are looking to balance risk and reward. In this blog, we explore the best multi-cap funds that are well-suited for long-term investments.
Top 5 multi-cap funds for long-term investing
Listed below are the top 5 multi-cap stocks you can consider in India in 2024:
The ICICI Prudential Multicap Fund stands out for its ability to invest in a mix of large, mid, and small-cap stocks. With a strong track record, this fund provides a well-balanced portfolio that suits a variety of market conditions. As of 23rd October 2024, the fund has delivered competitive returns with its NAV at Rs.30.23, a return of 45.17% over 1 year with Rs.1,035.44 crores fund size. You can invest in it with a minimum SIP amount of Rs.5,000.
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This fund is another reliable performer in the multi-cap category. With an emphasis on stock selection across market capitalisations, the Nippon India Multicap Fund has demonstrated resilience in both bull and bearish markets. If you are seeking long-term capital appreciation, this fund is a dependable option for diversification. Its NAV is Rs.292.6883 with a 1-year return rate of 39.8% for a fund size of Rs.39,621.81 crores. You can invest in it with a minimum SIP amount of Rs.100.
The Axis Multicap Fund is known for its growth-oriented investment philosophy. By focusing on high-quality companies across diverse market caps, this fund aims to provide risk-adjusted returns over the long term. Its strategy revolves around stock selection based on fundamental analysis. This helps it outperform many of its peer funds. Its NAV is Rs.17.41 with a 1-year return rate of 45.84% at a fund size of Rs.6,817.21 crores as of 23rd October 2024. You can invest in this fund with a minimum SIP amount of Rs.100.
The SBI Multicap Fund is a top performer in the multi-cap space because of its flexible approach. This fund invests in sectors of different market caps. This provides ample scope for diversification. It aims for consistent returns by balancing investments between large and stable companies. It also balances high-growth mid and small-cap stocks. As of 23rd October 2024, the fund's NAV stands at Rs.16.3887 with a fund size of Rs.19,295.44 crores and a 1-year return rate of 34.27%. You can invest in this fund with a minimum SIP amount of Rs.5,000.
Rounding out to the fifth position is the Kotak Multicap Fund. With a robust investment process, this fund has delivered steady returns over the years. Its exposure to different sectors and market caps enables it to capitalise on growth in changing market conditions. If you are looking for a multi-cap fund that offers a balanced mix of stability and growth with good returns, this fund is for you. Its NAV is Rs.18.741 with a 1-year return of 42.6% for the fund size of Rs.15,420.67 crores as of 23rd October 2024. You can invest in this fund with a SIP amount as slow as Rs.100.
Why invest in multi-cap funds?
Multi-cap mutual funds are an excellent choice for you because of the following benefits:
· Diversification
Multi-cap funds invest across various market caps. They are exposed to large, mid, and small-cap companies. This helps balance the potential of all these different categories.
· Flexibility
Fund managers have the flexibility to shift allocations on multi-cap mutual funds based on market conditions. This way, capitalising on opportunities across different sectors is possible.
· Risk mitigation
When you spread your investments across multiple market caps with multi-cap mutual funds, you can reduce the impact of volatility. This leads to more stable returns.
· Long-term growth
Multi-cap funds are designed to provide consistent capital appreciation. Hence, they are ideal for you if you are interested in a long-term investment horizon.
· Potentially higher returns
Due to their exposure to high-growth small and mid-cap stocks, multi-cap funds have the potential to deliver higher returns compared to funds that focus solely on large-cap stocks.
Conclusion
Investing in these top 5 multi-cap funds for the long term gives you a balanced approach to building wealth. The flexibility, diversification, risk mitigation, and potential for higher returns make these funds an attractive option. You can gain stability without sacrificing growth. Considering the funds mentioned above, you can create a well-rounded portfolio that aligns with your long-term financial goals. They not only provide the benefit of diversification but also enhance the potential for consistent and long-term growth. However, always ensure to review fund performance, investment objectives, and risk factors before making any decisions.
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