Multi Cap Fund

What are Multi cap funds?

A Multi cap fund is an open ended equity scheme typically investing 65% of total assets in equity and equity related instruments. Multi cap funds can invest in stocks across market capitalization i.e. their portfolio comprises of large cap, small cap and mid cap stocks.

Why one should invest in Multi cap funds?

Multi cap funds have the flexibility to invest across market cap which enables the fund manager to tactically play on market valuations. For example in times where market is volatile the fund manager will increase portfolio exposure towards large cap stocks to limit downside.

As compared to pure mid cap/small cap funds, these funds are less risky and popular among investors who are less aggressive about returns.

Who should invest in Multi cap funds?

Investors who don’t want to get into the trouble of stock-picking or deciding which market capitalization fund would suit them may opt for multi cap funds. It is an ideal choice for investors who want to take exposure to broader equity segments.

Investor who have moderate risk appetite and investment horizon of more than 7 years can invest in this scheme. It is suitable for investors who can take slightly higher risk to earn higher returns compared to large cap funds.

What is tax implication on multi cap funds?

Since Multi cap funds invest more than 65% in equity and equity related instruments they carry taxation under equity oriented schemes. Gains earned on equity oriented schemes are taxable depending on holding period. Gains on investment horizon of upto 1 year are called short term and the rate of tax applicable is 15%.

Gains on Investment horizon of more than 1 Year are called Long Term Capital Gains. Long Term Capital Gains over and above Rs.100,000 are taxable at 10% without indexation.

Available Multi cap funds:

Fund Name	Fisdom Rating
Aditya Birla Sun Life Equity Fund Growth	[star rating=”5″]
Kotak Standard Multicap Growth	[star rating=”4″]
SBI Magnum Multi Cap Fund Growth	[star rating=”4″]
IDFC Multi Cap Fund Growth	[star rating=”4″]
Mirae Asset India Equity Fund Growth	[star rating=”3″]
Motilal Oswal Multicap 35 Fund – – Growth	[star rating=”3″]
Franklin India Equity Fund Growth	[star rating=”3″]
DSP Equity Fund Growth	[star rating=”3″]
ICICI Prudential Multicap Fund Growth	[star rating=”2″]
UTI Equity Fund Growth	[star rating=”2″]
L&T Equity Fund Growth	[star rating=”2″]
Reliance Multi Cap Fund – Growth	[star rating=”1″]
HDFC Equity Fund Growth	[star rating=”1″]
Parag Parikh Long Term Equity Growth	Unrated
Baroda Multi Cap Fund – Plan A – Growth	Unrated
Principal Multi Cap Growth Fund Growth	Unrated
HSBC Multi Cap Equity Fund – Growth	Unrated
Invesco India Multicap Fund – Growth	Unrated
IDBI Diversified Equity Fund Growth	Unrated
LIC MF Multi Cap Fund Growth	Unrated
Taurus Starshare (Multi Cap) Fund – Growth	Unrated
Union Equity Growth	Unrated
DHFL Pramerica Diversified Equity Fund Gr	Unrated
Edelweiss Multi-Cap Growth	Unrated
Sahara Wealth Plus Fund Variable Pricing Growth	Unrated
Sahara Wealth Plus Fund Fixed Pricing Growth	Unrated
Sahara Growth Fund Growth	Unrated
Axis Multicap Fund Growth	Unrated
Mahindra Mutual Fund Badhat Yojana – Growth	Unrated
BNP Paribas Multi Cap Fund Growth	Unrated
Canara Robeco Equity Diversified Fund Growth	Unrated
Essel Multi Cap Fund Growth	Unrated
JM Multicap Fund Growth	Unrated