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Investing in multi-cap funds is the best way to overcome market volatility in 2018

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Several mutual fund advisers are suggesting new and retail investors to opt for multi-cap schemes to pierce the market in the year - 2018. A retail investor is not needed to have a regular watch on his multi-cap mutual funds scheme as such type of scheme invests across various sectors and market capitalizations and are under the vigilance of a fund manager.

A multi-cap privileges a fund manager to switch allocations across small-cap, mid-cap and large-cap stocks as per his viewpoint of the prevailing market.

Who should invest in multi-cap scheme?

A multi-cap scheme is ideal for the investors who can bear moderate risk. As the scheme is designed to invest in mid-cap or small-caps, it is more risky than large-cap fund schemes that invest only in companies having large market capital. However if your investment is made wisely in multi-cap schemes, you can earn higher returns. These multi-fund investments are also less risky than the predominated small and midcaps. A multi-cap fund scheme is ideal for smaller investments as well.

Multi cap fund scheme is the foremost choice among the Financial Advisors

Multi-cap is lately emerging as an exalted category. If you want to invest in only one scheme, a good financial advisor will always recommend you to go for multi cap fund schemes. It is best to take services of an experienced fund manager to manage your portfolio. If you are a new investor, I personally suggest you not to bet on market caps and sectors by yourself, rather take guidance or services of a sophisticated person who is dealing in market for a long time.

Track record of last year’s performance of multi-cap

It gave returns of 9.09 percent in previous financial year (2017-2018) and return of 4.86 percent in the last one month. The leading category of multi-cap funds scheme has given yield of 21 percent return in just one year.

Paradigm shift from large-cap to multi-cap

Neoteric underperformance of large-cap funds scheme has shaken the trust of investors expecting good returns from it. Mutual fund experts suggest that such investors should ponder and indulge in multi-cap fund schemes if they want better returns. Mutual fund experts convey that earlier most of the large cap schemes consisted of 10-12 percent share of their assets in mid-cap sector companies which assisted them to yield higher returns.

Likewise, if you check portfolio of multi-cap schemes, it consists of mid-cap biased with large-cap, having allocation of some small-cap company’s shares as well. So, the conclusion is to invest in multi-cap schemes for higher returns, but only if your profile allows risk for such investments. Again, risk can be minimized if your fund scheme portfolio manager is having enough of knowledge and experience in this market field.

Some final words:

Investment, especially trading in market is highly risky if you are a layman. So, invest wisely to get higher returns and don’t let your hard earned money get ruined. Prefer multi-cap mutual funds over directly trading in market for minimizing the chances of risk because the current market is truly uncertain.

If you are thinking, how I can invest in a mutual fund investment scheme? Well, there are a plethora of options. Like Swaraj Wealth provides you an online portal from where you can invest anytime from anywhere.




Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.

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