Multi Cap Fund: An Opportunity to Earn More

Are you planning to invest in an equity mutual fund? If yes, certainly the next question would be about the best fund to invest in.

However, as a smart investor, your focus should be on the most appropriate category to choose the fund from. Each category that is sectoral, small cap, mid cap, large cap category has its own pros and cons. While sectoral funds prove to be beneficial if a specific sector is performing remarkably, small and mid-cap offers exceptionally high returns. On the other hand, large-cap funds ensure stability to your portfolio. So, choosing the right category of Mutual Funds to invest in can be a great dilemma for many of us. One of the smart ways to overcome this problem is the multicap fund. With its considerable flexibility, multicap fund certainly stands out among the category with its manifold benefits. Multicap funds are diversified equity funds that invest in stocks of companies which belong to different market capitalizations. To maximize the gain, the investments are done in varying proportions. Rather than sticking to a specific capitalization, multicap funds incorporate small cap, mid-cap and large-cap stocks in the portfolio in a particular proportion.

With multicap funds, investors get an opportunity to invest in a diversified portfolio of stocks across the market-cap spectrum. On the basis of market outlook, the portfolio across market-caps can be shifted. The objective of multicap funds is to let investors enjoy the best with the perfect blend of stability of the portfolio and extraordinary returns. Furthermore, the risk factor is considerable fit in between small and mid-cap and large-cap funds investors. In this way, multicap funds let investors get the advantage of investing across market capitalizations through a single fund. It gives an opportunity to earn more.

Multicap funds are performing well with the positive changes in the economy. They spell manifold benefits in terms of:

Freedom- Multicap funds offer broader growth and asset allocation spectrum with distinctly diversified portfolio throughout the market.

Flexibility: It offers considerable flexibility for opportunities across the market spectrum.

Risk regulation: Markets are unpredictable; however, multicap funds prove to be risk regulators.

Ups and downs: Usually, a good multicap portfolio spells higher growth opportunities in the rising markets. This also proves to be beneficial in mitigating the negative impact on the volatile market.

All in all, choosing a multicap scheme to invest in can be a smart choice as it offers opportunities to buy companies across the market spectrum and earn more. However, it is also essential to keep in mind that the risk levels of multicap funds can quickly change as there is a larger universe of stocks to buy from. Therefore, it is always recommended to go for an established multicap scheme like Axis multicap fund. This equity oriented fund investing across small, mid-cap and large cap stocks is meant to generate long-term capital appreciation for its investors. If you are looking for a long-term investment with at least 5 years of the horizon, then Axis multicap fund can be a good option for investors who have a high-risk appetite in an expectancy of high returns in future.