Pages

Search This Website

Thursday, 8 July 2021

Multi-cap funds have returned up to 62% in the last 1 year, with good risk and good returns.

 Multi-cap funds have returned up to 62% in the last 1 year, with good risk and good returns.

Mutual fund multi-cap schemes have given investors a return of up to 62% in the last one year. The multi-cap scheme is suitable for those who want to get a good return on their investment with low risk. The multi-cap category has been the best performing category in equity mutual funds. The scheme has given good returns to investors in both short and long term. You too can make a profit by investing in it.


 Multi-cap funds have returned up to 62% in the last 1 year, with good risk and good returns.


What is a multi-cap fund?

Multi-cap funds invest in large-cap, mid-cap and small-cap funds. There are opportunities and risks in all three categories, which the multi-cap includes on its own. According to SEBI rules, the top 100 companies in terms of market capitalization are large cap, followed by mid cap and small cap companies.


75% of money in multi-cap funds is invested in equities

According to SEBI's new rules, multi-cap funds will have to hold 25-25% stake in large cap, mid cap and small cap. The fund manager must invest in at least 75% equity and equity oriented funds.


Suppose the fund manager has a total of Rs 100 of investors. Here the fund manager has to invest at least Rs 75 in equity and equity oriented funds. In which 25-25 rupees will have to be invested in large cap, mid cap and small cap. The remaining Rs 25 can be invested by the fund manager at his own expense.


It carries less risk

If you want to invest in equity funds but do not want to take too much risk, you can invest in top-rated multi-cap funds. These funds are also well diversified in terms of market capitalization. These funds may offer lower returns than small mid-cap funds when the market stabilizes, but these funds are less risky in volatile market conditions. So if you want a fund with low risk, multi-cap funds may be the right investment choice for you.


How much tax do I have to pay?

Earnings from equity funds are subject to short-term capital gains (STCG) tax on investment payments in less than 12 months. It is charged up to 15% on earnings as per current rules. If your investment is for more than 12 months, it will be considered as Long Term Capital Gains (LTCG) and you will have to pay 10% interest on it.


Who should invest in multi-cap funds?

Investors who want to invest in equities but do not want to take more risk can invest in this fund. This fund invests at market cap so it offers good diversification in the portfolio. Investors who want to strike a balance between risk and volatility in a single portfolio may also opt for multi-cap funds.

read in gujrati

These funds have given good returns in the last few years

Fund Name Return in last 1 year (%) Average Annual Return in last 3 years (in%) Average Annual Return in last 5 years (in%)

Principal Multi Cap Growth Fund 62.1 14.3 15.7

Aditya Birla Sun Life Equity Fund 62.0 15.1 15.6

SBI Magnum Multi Cap Fund 57.8 14.8 14.2

BNP Paribas Multi Cap Fund 55.3 15.2 13.9

Mira Asset India Equity Fund 51.5 15.7 16.0

No comments:

Post a Comment