For investors, building a portfolio that balances stability and growth is one of the biggest challenges. When you focus too much on one segment, it may limit your opportunities. On the other hand, your investments become difficult to manage when you spread them across multiple funds.
Multi cap mutual funds address this challenge, helping you approach investments in a more balanced way. A single fund distributes your assets across large, mid, and small-cap stocks. As a result, you gain exposure to different market segments as you create long-term wealth.
In this blog, we have listed some of the top funds from this category that will help you diversify your portfolio.
Best multi cap mutual funds to diversify your investments
Long-term investors may consider these top multi cap mutual funds to diversify across companies with different market capitalisations.
1. SBI Multi Cap Fund
The SBI Multi Cap Fund helps you create a balanced portfolio across businesses of different market capitalisations. Investors looking for exposure to both established businesses and emerging growth opportunities may opt for this fund.
Due to the exposure to small-cap funds, the risk profile of this fund is moderate to slightly high. It invests across a wide range of sectors like financial services, basic materials, consumer cyclical, healthcare, and industrials.
- AUM: INR 20,778.80 crore
- NAV: INR 17.1137
- Expense ratio: 0.86%
- 1-Year return: 0.40%
- 3-Year return: 17.61%
- 5-Year return: N/A
2. Baroda BNP Paribas Multi Cap Fund
The diversified approach to investment of the Baroda BNP Paribas Multi Cap Fund helps you gain exposure to sectors like technology, energy, financial services, and consumer cyclical. It carries a moderate risk profile, while you get the growth potential from mid and small-cap funds. If you’re building a balanced strategy with long-term financial goals, this fund may suit your requirements.
- AUM: INR 2,860.92 crore
- NAV: INR 313.8809
- Expense ratio: 0.90%
- 1-Year return: 3.01%
- 3-Year return: 18.97%
- 5-Year return: 17.85%
3. Invesco India Multicap Fund
The Invesco India Multicap Fund invests across different sectors and market segments. Investors seeking a broad exposure to the market with a disciplined approach to investment may consider creating an SIP or investing a lump sum amount in this fund.
With this multi cap fund, you can capitalize on the stability of large cap stocks and the growth potential of mid-cap stocks.
- AUM: INR 3,550.35 crore
- NAV: INR 144.7500
- Expense ratio: 0.69%
- 1-Year return: – 1.95%
- 3-Year return: 17.38%
- 5-Year return: 15.99%
4. Quant Multi Cap Fund
The Quant Multi Cap Fund actively adjusts its allocation to companies across different sizes based on trends and opportunities in the market. It is suitable for investors who are comfortable with a higher level of risk to benefit from the growth potential.
The flexible allocation strategy of the fund helps fund managers respond quickly to market conditions. Investors looking for a professionally managed, diversified portfolio may consider including this fund in their portfolio.
- AUM: INR 6,573.56 crore
- NAV: INR 675.0692
- Expense ratio: 0.74%
- 1-Year return: 2.45%
- 3-Year return: 14.11%
- 5-Year return: 15.76%
5. ITI Multi Cap Fund
This fund invests across companies with different market capitalisations. It helps investors identify growth opportunities in various sectors. If you are looking for diversification with the potential returns over time, the ITI Multi Cap Fund may be suitable for your portfolio. Long-term investors comfortable with fluctuations in the market may invest a lump sum amount or create an SIP in this fund.
- AUM: INR 1,200.27 crore
- NAV: INR 27.2773
- Expense ratio: 0.33%
- 1-Year return: 10.22%
- 3-Year return: 21.80%
- 5-Year return: 15.52%
Conclusion
Multi cap mutual funds can simplify your approach to investments through diversification, combining companies across different market sizes into a single fund. As an investor, you can balance your risk and return without having to manage multiple investments or track different markets across economic cycles.
If you’re a beginner looking to diversify your portfolio right from the start, or hold separate portfolios across market segments, you can consider investing in a multi cap fund.
