The domestic market has experienced significant volatility this year, with the YTD declining by over 10%. It is best to start diversifying your portfolio when the Sensex is at 3.90 per cent and the Nifty 50 is near 52-week lows of 3.74 per cent, to prevent the impact of one sector or category of stocks on your entire portfolio. a volatile market. Multi-cap mutual funds can be helpful when it comes to diversification as the fund manager invests in all major, mid- and small-cap stocks, giving better market-based returns in the long run with a diversified portfolio. The fund can deliver a significant risk-adjusted return for your equity money backing over the course of three to five years. As per SEBI classification, multi-cap funds are required to invest 25 per cent of their total assets in large-, mid and small-cap firms or at least 65 per cent in equity and equity-linked securities, which indicates That fund can generate a significant risk-adjusted return for your equity money backing over a long period of 3 to 5 years. Here are two multi-cap funds that have given SIP returns of up to 31% over the last three years, keeping in mind the fund category.
Quant Active Fund – Direct Plan-Growth
Quant Active Fund – Direct Plan-Growth was introduced on January 7, 2013, and as on March 31, 2022, the Fund’s Asset Under Management (AUM) was 2,329.31 crore, with a NAV of 392.05 as of July 1, 2022. SIP in this fund can be started with Rs. 1000 per month and the fund has an expense ratio of 0.58 percent. Since its inception, Quant Active Fund Direct-Growth has earned an average return of 19.24 per cent each year and 5.47 per cent during the previous year. The fund has given SIP returns of 31.49% in the last three years, 21.41% in the last two years and 24.43 per cent in the last five years. The fund’s asset allocation is diversified across services, consumer staples, healthcare, financial, metals and mining sectors and the fund’s top 5 holdings are in ITC Ltd., Vedanta Ltd., State Bank of India, Patanjali Foods Ltd., Larsen & Toubro. Ltd..
Nippon India Multicap Fund – Direct Plan-Growth
The fund was incorporated on January 2, 2013 and as on March 31, 2022, Nippon India Multi Cap Fund Direct-Growth has Assets Under Management (AUM) of Rs. 11638.57 crore with its Net Asset Value (NAV) of Rs. 148.74. The minimum investment amount required for SIP in this fund is Rs. 500, and its expense ratio may exceed the category average of 1.39 percent. Since its inception, Nippon India Multi Cap Fund Direct-Growth has earned an average return of 13.42 per cent each year and 11.76 per cent during the previous year. The fund gave SIP returns of 22.67% in 2 years and 22.29% SIP returns in 3 years. The top 5 holdings of the fund are Linde India Limited, ICICI Bank Limited, HDFC Bank Limited, Indian Hotels Company Limited and Housing Development Finance Corp. Ltd. The fund’s asset allocation spans the financial, services, capital goods, technology and automobile industries.