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Is it good to invest in multicap funds?

Author

Christopher Snyder

Updated on February 24, 2026

Is it good to invest in multicap funds?

Therefore, in the long run, multi-cap funds are usually better wealth creators than other categories of funds as they can take advantage of investment opportunities across the market. Further, returns from the multi-cap category are comparable to mid-cap category over the long term which comes with lesser volatility.

Moreover, which is the best multicap fund?

A multicap mutual fund is an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks.

Best Performing Multicap Funds to Invest in 2021.

Fund Name3 Year Returns
PGIM India Flexi Cap Fund17.60%
Principal Focused Multicap Fund14.20%
Axis Flexi Cap Fund13.70%
SBI Focused Equity Fund12.10%

Also Know, is it safe to invest in focused funds? Focused funds work well for investors who are willing to take the risk of investing in select stocks for a chance to earn high returns. If you don't have the appetite for market volatility, these funds may not be suitable for you.

Herein, which is better focused or Multicap Fund?

While the above is a simplification, it is the reason why focused funds have a higher risk-reward profile than multicap funds. In fact, multicap mutual funds have the option to diversify way beyond 50 stocks! Moral of the story: You should consider focused mutual funds only if you are okay with the above.

Is it safe to invest in midcap fund?

Kamra of Finology says, “Even though these funds have the potential to deliver high returns, they are highly volatile and carry significant risks. During the economic downturn or market volatility, they are more exposed to price corrections. Hence, conservative investors should avoid investing in this category.

Which SIP is best for 5 years?

Best SIP Plans for 5 Years in Equity Funds
  • Axis Bluechip Fund Monthly SIP Plan. This is an open-ended equity scheme with a track record of outperformance.
  • ICICI Prudential Blue chip Fund.
  • SBI Blue chip Fund.
  • Mirae Asset Large Cap Fund.
  • SBI Multicap Fund.

Which Flexicap fund is best?

5 Best Flexi Cap Mutual Funds Ranked By CRISIL
Funds1-Year Returns3-Year Returns
UTI Flexicap61.01%18.84%
Canara Robeco Flexi Cap Fund50.07%18.12%
DSP Flexi Cap Fund58.76%18.63%
Union Flexicap53.99%17.70%

What is new name of AXIS multicap fund?

Axis Flexicap Fund

Which is better mid cap or Multicap?

Therefore, in the long run, multi-cap funds are usually better wealth creators than other categories of funds as they can take advantage of investment opportunities across the market. Further, returns from the multi-cap category are comparable to mid-cap category over the long term which comes with lesser volatility.

Which mutual fund has highest return?

Top 10 High Risk Mutual Funds
Fund NameCategory1Y Returns
Edelweiss Balanced Advantage FundHybrid35.9%
SBI Multi Asset Allocation FundHybrid20.8%
Principal Equity Savings FundHybrid27.1%
ICICI Prudential Regular Savings FundHybrid14.6%

What is Blue Chip Fund?

Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. Blue Chip is commonly used as a synonym for large cap funds.

Is Axis Focused 25 multicap fund?

As on April 20, 2018, the AUM of Kotak Standard Multicap Fund is approximately INR 32 while of Axis Focused 25 Fund is approximately INR 27. The summary comparison of basics section is tabulated as follows.

Basics Section.

NAV
₹50.8 ↑ 0.39 (0.78 %)₹44.6 ↑ 0.34 (0.77 %)
Risk
Moderately HighModerately High
Expense Ratio

Should I invest in Axis Focused 25 Fund?

While Axis Focused 25 Fund offers the benefit of higher exposure to the best ideas, the portfolio is well diversified across sectors to manage risk. Axis Focused 25 Fund invests in equity, which, as an asset class holds the potential to beat inflation and generate long term wealth.

Which companies would fall in the category of large cap?

After implementation of the regulation, large-cap stocks would be the top 100 companies of the underlying benchmark in terms of full market capitalization. Mid-caps would be companies ranking from 101st to 250th and small-caps would be companies ranking from 251st onwards in terms of full market capitalization.

What is meant by segregated portfolio?

A segregated portfolio company (or SPC), sometimes referred to as a protected cell company, is a company which segregates the assets and liabilities of different classes (or sometimes series) of shares from each other and from the general assets of the SPC.

What is SBI focused equity fund?

SBI Focused Equity Fund aims to provide investors with opportunities of long-term capital appreciation by investing in a concentrated portfolio of equity and equity related instruments. SBI Focused Equity Fund has the flexibility to invest upto 35% in debt and/or money market instruments.

How is Tata focused equity fund?

Tata Focused Equity Fund is a concentrated fund aiming to generate returns by investing in growth stocks across market caps and sectors. With a bottom-up stock picking approach, the fund aims to carefully analyze and invest in compounding stocks following the GARP - Growth At Reasonable Price philosophy.

Which mutual fund schemes would have real time NAV?

Real Time NAV
Scheme NameReal Time NAV (in Rs.)Unit Creation Size With AMC
BHARAT 22 - ETF41.83 ( 09/07/2021 14:48 PM )4,300
ICICI Prudential IT ETF354.76 ( 09/07/2021 14:48 PM )10,000
ICICI Prudential NV20 ETF93.81 ( 09/07/2021 14:48 PM )12,500
ICICI Prudential Nifty Low Vol 30 ETF141.39 ( 09/07/2021 14:48 PM )30,000

What is value fund in mutual fund?

A value fund is a pooled investment that follows a strategy focusing on shares that are undervalued based on fundamental analysis. Value stocks are frequently well-established companies that offer investors dividend payments. Warren Buffett, one of the world's most successful investors, is a value investor.

What is Mid Cap fund?

A mid-cap fund is a pooled investment, such as a mutual fund, that focuses on companies with a market capitalization in the middle range of listed stocks. Mid-cap stocks tend to offer investors greater growth potential than large cap stocks, but with less volatility and risk than small cap stocks.

What are multicap funds?

Definition: These are diversified mutual funds which can invest in stocks across market capitalization. In other words, they are market capitalization agnostic. That is, their portfolio comprises of large cap, midcap and small cap stocks.

What focussed funds?

A focused fund is a mutual fund that holds a only relatively small variety of stocks or bonds that are similar along some dimension. By definition, a focused mutual fund focuses on a limited number stocks in a limited number of sectors, rather than holding a broad or diversified mix of positions.

What is the difference between multi cap and focused equity funds?

Multi cap mutual funds are allowed to invest in stocks across market capitalizations – large, mid and small. Focused mutual funds are again allowed to invest in stocks across market capitalizations. But a focused mutual fund's portfolio cannot consist of more than 30 stocks in all.

Why do we focus mutual funds?

With focused mutual funds, investors can maximise their capital gains more effectively. Since mutual funds do not segregate companies and sectors, they can limit the returns by investing in stocks that do not perform well.

What is ELSS account?

ELSS or Equity Linked Savings Schemes are Mutual fund investment schemes that help you save income tax. That's why they are also known as tax-saving funds. The Income Tax Act, under section 80c, allows taxpayers to invest up to INR 1.5 lakh in specific securities and claim it as a deduction from their taxable income.

What is Dividend Yield fund?

Dividend yield funds are a type of mutual funds that invest mostly in companies that have the potential to provide regular dividend payout. As per the norms of the Securities and Exchange Board of India (SEBI), a dividend yield fund invests at least 65% of its portfolio in dividend-yielding instruments.

What does all equity focus mean?

It focuses on long-term capital appreciation and provides very little to no current interest income. Carries the highest level of risk, as it contains only equity investments. Is expected to have similar fluctuations in value and long-term return potential to the stock market.

What is hybrid fund?

A hybrid fund is an investment fund that is characterized by diversification among two or more asset classes. These funds typically invest in a mix of stocks and bonds. They may also be known as asset allocation funds.

What is ESG fund?

ESG is the abbreviation of environmental, social, and governance. ESG funds are those funds whose asset allocation mostly includes shares and bonds of companies that are evaluated based on the factors of environmental, social, and governance.

Who should invest in large and midcap fund?

As this is an equity mutual fund, it generally has a long term investment horizon. It helps in fulfilling long term financial goals. So this fund is best suited for investors who are ready to invest for at least 5 years.

Which midcap fund is best?

The following table shows the top mid-cap funds as per the past 3-year and 5-year returns:
Mutual fund5 Yr. ReturnsMin. Investment
Quant Mid Cap Fund Growth19.32%--
Mirae Asset Emerging Bluechip Fund21.06%₹5000
Kotak Emerging Equity Fund- Direct Plan - Growth19.1%₹5000
Axis Midcap Fund20.51%₹5000

Which Blue Chip Fund is best?

Top 10 Large Cap Mutual Funds
Fund NameCategoryFund Size(in Cr)
Axis Bluechip FundEquity₹29,161
BNP Paribas Large Cap FundEquity₹1,129
Mirae Asset Large Cap FundEquity₹27,435
Kotak Bluechip FundEquity₹2,945

Which mid-cap Fund is best for long term investment?

Table of Best Midcap Funds for 2021:
Fund NameReturns (%)
L&T Midcap Fund48.5718.72
Edelweiss Midcap Fund65.0420.34
HDFC Midcap Opportunities Fund53.7618.55
Franklin India Prima Fund54.1018.98

Which is better mid-cap or large cap?

According to Shahi, large-cap funds usually provide stable and more predictable returns, but lesser growth potential due to the size of the companies. While mid-cap funds have the potential to offer higher returns than large-cap funds as the growth potential is more. However, it is lesser than in small-cap funds.

Is it safe to invest in large cap mutual funds?

Large-cap companies are those that fall in the top 100 ranks of the given benchmark. As compared to small-cap and mid-cap funds, these funds are less risky and may be ideal for relatively risk-averse investors. Being patient and having a long-term horizon may be a preferable investment strategy for large-cap funds.

How good is Axis Midcap Fund?

Axis Midcap Fund (Growth) is recommended for investment within mid cap mutual funds.

Axis Midcap Cap Fund-Growth Scheme Details.

1 Year Return60.20%
3 Years Return21.80%
5 Years Return19.90%
10 Years Return19.30%

Should we invest in small cap funds?

Aligning investors' risk appetite with the smallcaps: Smallcaps are volatile and associated with high risk. So, only investors with a high risk appetite and an investment horizon of at least 5 years should invest in them. Staying invested in small caps for the long term is important to benefit from their potential.

Is PGIM India safe?

PGIM India Debt Funds invest in debt and money market instruments. These funds provide investors with regular income and safety of capital. These funds are ideal for conservative investors who have an investment horizon of around 5 years.

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