Multicap mutual funds are diversified equity mutual fund schemes which invest across market cap segments i.e. large cap, midcap and small caps. Multicap funds are among the most diversified among all equity funds because they are not only diversified across industry sectors, but also across market cap segments.
Prior to September 2020, multicap mutual funds had the flexibility to invest across market cap segments without any limits for any specific segment. However, as per SEBI’s circular in September 2020, multicap funds must invest at least 25% of their assets in large cap stocks, at least 25% in midcap stocks and at least 25% in small cap stocks.
Multicap funds have the advantage of providing diversification benefits across all the three market segments.
Source: National Stock Exchange, Advisorkhoj Research. *Trailing Compound Annual Growth Rate (CAGR) returns as on 30th September 2021. Disclaimer: Past performance may or may not be sustained in the future.
You should always invest according to your risk appetite and investment needs. You should clearly understand the risk profile of a scheme before investing and consult with your financial advisor if you need any help in understanding your risk appetite and the risk profile of your mutual fund scheme.
Issued as an investor education initiative by Nippon India Mutual Fund.
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.
The information being provided under this section 'Investor Education' is for the sole purpose of creating awareness about Mutual Funds and for their understanding, in general. The views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.