Multi Cap Mutual Funds invest in various equity stocks of different market capitalization. Here is the monthly update of best multi cap funds which offers stable returns. If you are someone who wants to enjoy diversified portfolio in a single fund with moderate risk appetite, then Multi Cap Mutual Funds are the best option. Multi Cap Mutual Funds invests in equity stocks of different market capitalization- large, mid and small-cap stocks. The top Multi Cap Mutual Funds in India offers a fantastic balance between risk and return. The best Multi Cap Mutual Funds offers stable returns which have very low volatility. The Multi Cap Mutual Funds offers high return when the market performs well but protects you when the market falls. In order to get the best investment result, you need to invest in top Multi Cap Mutual Funds for a minimum period of 5 years or more. To invest in best Multi Cap Mutual Funds, you to have a close look at the funds’ performance, benchmark, risk-return and also the expense ratio.
How to choose Best Multi Cap Mutual Funds 2019
- Fund’s Performance- Risk Return Analysis One of the most important factor in deciding the top Multi Cap Mutual Fund is the fund’s stable performance. You need to see the return generated from the Multi Cap Mutual Funds for a minimum of 3 to 5 years must be stable. To be labeled as the best Multi Cap Mutual Funds, it must yield a stable return not just in a year but for a period of 5 to 10 years. Also, you must consider the rolling returns of last 3 or 5 years for a better understanding. Along with the return, you must check the Multi Cap Mutual Funds risk analysis parameters like- Standard deviation, Sharp Ratio, Alpha, Beta and Sortino Ratio.
- Benchmark If you want to invest in best Multi Cap Mutual Funds 2019, then you must consider that the Multi Cap Mutual Funds must outperform the benchmark index. The return generated from the Multi Cap Mutual Funds must exceed the benchmark limit for a minimum period of 3 years. If not then, you must not invest in that particular Multi Cap Mutual Funds.
- Calculating the consistency in the last 3 years ‘H’ or Hurst Exponent is used to evaluate the fund’s consistency. The ‘H’ component is used to compute the randomness of the NAV series. Funds with high H means less volatile and vice versa. If H>0.5, the NAV series is persistent. If H<0.5, the NAV series is reverting. If H=0.5, the NAV series is called geometric Brownian time series which is very difficult to estimate. So, higher the H value, stronger is the series trend.
- Portfolio You must check the portfolio of Multi Cap Mutual Funds. The top Multi Cap Mutual Funds invests in large, small and mid-cap stocks to offer diversified equity portfolio. With diversification across different market caps, Multi Cap Mutual Funds yield a higher return. So, the portfolio of a fund is a very important factor to consider.
- Expense Ratio The annual expense which is incurred by the fund is Expense Ratio (expressed in %). The top Multi Cap Mutual Funds will incur an expense ratio of maximum of 3%. If the expense ratio exceeds 3%, then it will be best if you don’t invest in that fund.
Top 5 Multi Cap Mutual Funds to invest in 2019
|Name of the Fund||Launch Date||Three years return||Five years return||Ten years return||Return Since Inception|
|Franklin India Focused Equity Fund||26th July, 2007||9.13||12.90||15.72||12.36%|
|Reliance Focused Equity Fund||26th December, 2006||7.45||11.57||15.13||12.73%|
|HDFC Equity Fund||1st January, 1995||10.72||9.26||13.50||18.54%|
|ICICI Prudential MultiCap Fund||1st October, 1994||9.09||10.99||13.07||14.47%|
|Aditya Birla Sun Life Equity Fund||27th August, 1998||9.21||10.94||13.03||22.50%|