Multi-cap mutual fund schemes have been a favorite of mutual fund advisers for long. Many mutual fund experts believe that a regular investor need not look beyond amulti-capp scheme for his or her investment needs, as these schemes invest across market capitalization and sectors.

Multi-cap funds offer the fund manager the freedom to invest across large-cap, mid-cap and small-cap stocks.

A multi cap mutual fund scheme is meant for investors with a moderate risk appetite.

Since the scheme also invests in mid or small cap stocks, it is riskier than large cap schemes that invest predominantly in very large companies.

However, because of the exposure to mid and small cap stocks, multi-cap schemes are comparatively riskier and can also offer higher returns. Lets look into the top multi cap fund to invest in 2018.

5 Best Multi-Cap Funds to Invest in 2018

If you want to invest in a multi cap scheme, but not sure how to pick a scheme, here is the list of top 5 multi cap fund of 2018.

Invest in these schemes with an investment horizon of 7 to 10 years to achieve your long-term financial goals.

1. Motilal Oswal Focused Multicap 35 Fund

This is a Multi Cap Equity Oriented Mutual Fund launched on April 28, 2014.

It is a fund with moderately high risk and has given a return of 29.86% since its launch.

Returns per annum over the years from this fund are:

Motilal Oswal Multicap 35 Fund
Fund Name 1Y 3Y 5Y Category Risk
Motilal Oswal Multicap 35 Fund - Direct - Growth -5.45% 13.09% NA Equity
(Multi Cap)
Moderately High

Invest in Motilal Oswal MOSt Focused Multicap 35 Fund Now

Rating by Groww 5 star
AUM (Fund Size) ₹11,411 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Smallcap 100 TRI since its launch.
Age of the fund 4 years old
Expense Ratio 1.49%

A very recent entrant to the category, this fund has delivered a good show in the three years since launch and also has a unique mandate.

It has recently entered the rankings with a five-star rating, making its debut with a bang.

2. DSP BlackRock Equity Opportunities Fund

This is a  Multi-Cap Equity Oriented Mutual Fund launched on January 1, 2013.

It is a fund with moderately high risk and has given a return of 18.83% since its launch.

Returns per annum over the years from this fund are:

DSP BlackRock Opportunities Fund
Fund Name 1Y 3Y 5Y Category Risk
DSP BlackRock Equity Opportunities Fund - Direct - Growth -6.18% 13.14% 18.43% Equity
(Large & Mid Cap)
Moderately High

Invest in DSP BlackRock Opportunities Fund Now

Rating by Groww 5 star
AUM (Fund Size) ₹4,805 Cr
Minimum SIP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 500 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.28%

The scheme seeking to generate long-term appreciation from a portfolio constituted of equity and equity-related securities of large and mid-cap companies.

It is a flexible cap fund with no pre-defined market capitalization limit. However, the fund has had a bias towards large caps.

In recent times, the fund has maintained a 70% plus large-cap exposure, with mid-cap stocks at about 20%. It is overweight on large caps relative to the category.

3. Aditya Birla Sun Life Equity Advantage Fund

This is a Multi-Cap Equity Oriented Mutual Fund launched on January 1, 2013.

It is a fund with high risk and has given a return of 20.61% since its launch.

Returns per annum over the years from this fund are:

Aditya Birla Sun Life Equity Advantage Fund
Fund Name 1Y 3Y 5Y Category Risk
Aditya Birla Sun Life Equity Fund - Direct - Growth 16.59% 15% 21.53% Equity
(Multi Cap)
High

Invest in Aditya Birla Sun Life Advantage Fund Now

Rating by Groww 4 star
AUM (Fund Size) ₹5,738 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 since its launch.
Age of the fund 5 years old
Expense Ratio 1.15%

The scheme seeks to achieve long-term growth at relatively moderate levels of risk through a diversified investment approach, the investment emphasis of the scheme would be on identifying companies with sound corporate management and prospects of good future growth.

4. SBI Magnum Multi Cap Fund

This is a  Multi-Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 20.18% since its launch.

Returns per annum over the years from this fund are:

SBI magnum multi cap fund
Fund Name 1Y 3Y 5Y Category Risk
SBI Magnum Multi Cap Fund - Direct - Growth -3.57% 12.69% 20.55% Equity
(Multi Cap)
Moderately High

Invest in SBI Magnum Multi Cap Fund Now

Rating by Groww 4 star
AUM (Fund Size) ₹4,086 Cr
Minimum SIP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 500 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.35%

The scheme would invest in equities and equity related instruments of companies spanning the entire market capitalization spectrum.

The fund will invest 50-90% in large-cap stocks, 10-40% in mid-cap stocks and up to 10% in small-cap stocks.

This was among the less known SBI schemes a few years ago. But a steady improvement in performance has now made this fund a hard to ignore option in the multi-cap category.

Check out this fund review about SBI Magnum Multi Cap Fund

5. Kotak Standard Multi Cap Fund

This is a Multi-Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 19.51% since its launch.

Returns per annum over the years from this fund are:

Kotak Standard Multi Cap Fund
Fund Name 1Y 3Y 5Y Category Risk
Kotak Standard Multi Cap Fund - Direct - Growth 0.14% 13.96% 20.52% Equity
(Multi Cap)
Moderately High

Invest in Kotak Select Focus Fund Now

Rating by Groww 4 star
AUM (Fund Size) ₹17,041 Cr
Minimum SIP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 200 since its launch.
Age of the fund 5 years old
Expense Ratio 1%

The scheme aims to generate capital appreciation from a diversified portfolio of equity and equity related instruments, generally focused on a few selected sectors.

The fund believes that different sectors of the economy perform differently over different economic cycles.

It attempts to take focused bets on select sectors that are likely to outperform.

The fund generally maintains four-nine sectors in its portfolio, selected on a top-down basis.

Things to Remember

The rates of return consider above are all past data. No one can predict the actual rate of return you will get on your investment.

You can only assume and predict the fund’s capability based on its past performance.

But don’t just run for returns from investment for investing in mutual funds. There are a lot of factors you should look into before selecting a fund which will match your investment goals.

Following the 3 things you should always remember before investing in Mutual Funds:

1.Don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.

2.Every person’s financial condition is different. Evaluate the funds you invest in yourself – don’t invest in a fund because of its popularity!

3.Review your investment from time to time but not too often. Once a few weeks is good enough.

Read More: 10 Tips on Investing in Mutual Funds

Also, remember that an SIP is an ideal method to invest in the equity market as it involves staggering your investments over the whole financial year. It will help you to average the cost of purchase and beat volatility.

Also, it brings financial discipline to your life.

To look at some of the best performing funds from every category of mutual funds, check out Groww 30 best mutual funds to invest in 2018.

Happy Investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.