2018 largely remained volatile due to multiple events.

The events included re-introduction of long-term capital gains tax, no-confidence motion in the parliament, depreciating rupee, rising cost of crude oil, the result of assembly elections in states including Karnataka, Madhya Pradesh, Chhattisgarh, Rajasthan, default of large infrastructure finance company, scam reported by India’s second largest public sector bank and more.

Amidst this, investors are worried about their strategy for 2019.

Given the fact that the country is going into election during the year, it is better we invest in flexible funds that shields an investor from the abrupt movement.

Here are the Best Mutual Funds to Invest in 2019

In this blog, we seek to discuss the multi-cap funds that suit an investor amidst such situations.

Read on!

Best Multi cap Funds 2019 - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
SBI Magnum MultiCap Fund Direct-Growth 7.45% 12.53% 15.21% 1.13% 65% Equity
(Multi Cap)
Moderately High
Kotak Standard Multicap Fund Direct-Growth 7.72% 13.9% 15.77% 0.76% 14% Equity
(Multi Cap)
Moderately High
Aditya Birla Sun Life Equity Fund Direct-Growth 5.6% 12.58% 12.72% 1.03% 16% Equity
(Multi Cap)
Moderately High
Mirae Asset Large Cap Fund Direct- Growth 10.65% 14.96% 14.88% 0.63% 22% Equity
(Large Cap)
Moderately High
Axis Focused 25 Direct Plan-Growth 0.43% 16.09% 15.27% 0.74% 60% Equity
(Focused)
Moderately High
ICICI Prudential Multicap Fund Direct Plan-Growth 8.84% 11.69% 12.61% 1.2% 187% Equity
(Multi Cap)
Moderately High

Best Multi-Cap Fund 2019 – Details

1.SBI Magnum Multicap Fund- Direct

The fund seeks to invest in equities and related instruments of companies across market capitalization.

The fund invests nearly 50-90 percent in large-cap stocks, 10-40 percent in mid-cap stocks and up to 10 percent in small-cap stocks.

Key Details
Minimum SIP Amount Rs. 500
Minimum Lumpsum Amount Rs. 1000
NAV Rs. 51.4
Fund Size Rs. 10,560 Cr
Expense Ratio 0.96%

Source: Groww

Holding Analysis

Source: Groww

Also, know about the best large-cap funds of 2019

This fund is one of the best multi-cap funds and has outperformed its peers across a multi-trailing period, generating healthy absolute returns. The risk grade is average, while the return grade is above average.

The fund has remained balanced with the beta at 0.99, thereby indicating that the fund performance is derived from the holdings and is not solely dependent on the market movement. Anup Upadhyay ably manages the fund.

2. Kotak Standard Multicap Fund- Direct

The scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity-related securities, generally focused on a few selected sectors.

Top Mid-Cap Mutual Funds to Invest in 2019

Key Details
Minimum SIP Amount Rs. 500
Minimum Lumpsum Amount Rs. 5000
NAV Rs. 37.5
Fund Size Rs. 21,682 Cr
Expense Ratio 0.97%

Source: Groww

Holding Analysis

Source: Groww

The fund is one of the top multi-cap funds that has outperformed its peers across the multi-trailing period. The fund has a below average risk profile and high return grade.

It also has a beta of 0.94 indicating a balanced approach adopted by the fund manager.

The fund has a risk (measured by standard deviation) lower than the category average. Harsha Upadhyay ably manages the fund.

3.Aditya Birla Sun Life Equity Fund-Direct

The fund seeks long-term growth of capital and regular by investments 90% in equities and 10% in debt and money market securities.

The scheme adopts a top-down & bottom-up approach of investing & a portion of the fund will be invested in IPOs, emerging sectors & other primary market offerings.

Key Details
Minimum SIP Amount Rs. 100
Minimum Lumpsum Amount Rs. 100
NAV Rs. 766.8
Fund Size ₹10,027 Crore
Expense Ratio 1.07%

Source: Groww

Holding Analysis

Source: Groww

This fund is from one of the most reputed asset management companies. The fund has an average risk grade and high return grade.

The fund has a beta of 0.98 indicating that the fund manager adopts a balanced approach while creating a portfolio and the returns are purely based on stock selection. Anil Shah ably manages the fund.

4. Mirae Asset India Equity Fund-Direct 

The fund seeks to provide long-term capital appreciation by finding investment opportunities that result from the Indian growth story. The fund invests in equity and equity-related securities of companies of varied sizes.

Key Details
Minimum SIP Amount Rs. 1000
Minimum Lumpsum Amount Rs. 5000
NAV Rs. 53.8
Fund Size Rs. 10,560 Cr
Expense Ratio 0.96%

Source: Groww

Holding Analysis

Source: Groww

Why Should You Invest in Mirae Asset India Equity Fund?

The fund is one of the top performing funds in the multi-cap category that has been awarded a silver category rating. The fund has an average risk grade and high return grade.

The fund has a beta of 0.97, thereby maintaining stability with aggressive and conservative stocks. The fund has a marginally lower risk (measured by standard deviation) than the category average.

Neelesh Surana and Harshan Borawake jointly manage the fund.

5. Axis Focused 25 Fund-Direct

The scheme seeks to generate long-term capital appreciation by investing in a concentrated portfolio of equity & equity related securities.

The fund invests in up to 25 companies and focuses primarily in Top-200 company by market capitalization.

Key Details
Minimum SIP Amount Rs. 1000
Minimum Lumpsum Amount Rs. 5000
NAV Rs. 29.7
Fund Size Rs. 6,762 Cr
Expense Ratio 0.66%

Source: Groww

Holding Analysis

Source: Groww

Why Should You Invest in Axis Focused 25 Fund?

The fund is one of the most concentrated funds in the category that has less than 25 holdings. However, the fund has managed to get considerable returns and hold some of the fundamentally sound names in the portfolio.

The fund has a beta of 1.06, indicating stability but with a marginally aggressive tilt. This results in risk (measured by standard deviation) being higher than the category average. Jinesh Gopani manages the fund.

6. ICICI Prudential Multicap Fund-Direct

The fund seeks to provide capital appreciation through investments in equity & equity related instrument across the large-cap, mid-cap and small-cap segment of the market across different sectors.

Key Details
Minimum SIP Amount Rs. 100
Minimum Lumpsum Amount Rs. 5000
NAV Rs. 310.3
Fund Size Rs. 3,167 Cr
Expense Ratio 1.35%

Source: Groww

Holding Analysis

Source: Groww

Why Should You Invest in ICICI Prudential Multicap Fund?

The fund is reasonably diversified with around 70 names in the portfolio. It has a below average risk grade and above average return grade.

The fund has a beta of 0.85 that indicates a conservative approach regarding portfolio management. This approach results in lower standard deviation when compared to the category average. Jinesh Gopani manages the fund.

Best Multi-Cap Funds to Consider Investing in 2019 - Bonus List
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Axis Multicap Fund Direct - Growth 6.53% NA NA 0.62% NA Equity
(Multi Cap)
Moderately High
Motilal Oswal Multicap 35 Fund Direct-Growth -0.98% 12.67% 17.71% 0.96% 40% Equity
(Multi Cap)
Moderately High
Franklin India Equity Fund Direct-Growth 2.63% 7.94% 12.56% 1.05% 13% Equity
(Multi Cap)
Moderately High

Definition

Multi-cap funds are diversified funds that invest in stocks across market capitalization. In simple words, these funds are market capitalization agnostic.

Best SIP Plans for High Growth in the Long Term – 2019

The portfolio comprises of large-cap, mid-cap, and small-cap stocks and thus are relatively less risky compared to pure small-cap funds. This type of funds is suitable for moderate risk takers.

Trailing Returns (%) 3-M 6-M 1-Y 3-Y 5-Y
Category -6.12 -3.07 -1.77 12.43 17.31
Number of funds in category 49 47 45 41 35

Performance as on As on Dec 14, 2018

Source: Valueresearch online

Risk Measures (%) Mean Std Dev Sharpe Sortino Beta Alpha
Category 11.76 15.81 0.34 0.50 0.98 -0.88
Number of funds in category 42 42 42 42 42 42

As on Nov 30, 2018. The Risk Measures have been calculated using calendar month returns for the last three years.

Source: Valueresearch online

Benefits 

Whenever people consider investing in an equity fund, the most commonly asked question by them is which is the best fund to invest.

However, the first question should be the category you should the first question should be which type is most appropriate to choose the fund from such as large-cap, mid-cap, small-cap, multi-cap, sectoral funds, etc.

Each category has its advantages. For example, large-cap funds ensure stability; the small-cap funds potentially provide exceptionally high returns.

One of the categories that stand out amongst all the types due to its flexibility is multi-cap fund. Multi-cap invests across the breadth of the equity market. Thus multi-cap funds can take advantage of the opportunities across market cap for the investment.

An additional benefit of a multi-cap fund is that the fund manager of such funds can easily constrain the downside by realigning market cap allocation as per the market scenario.

Also, a multi-cap fund can take advantage of both growth and value style of investment. Thus, multi-cap funds are considered as better wealth creators when compared to other fund categories.

In simple words, it is beneficial for retail investors to invest via multi-cap funds as their core holdings and do not get carried away.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww

 

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