Jun 25, 2018 4 min read

Invest in Top Multi Cap Approach Funds and Dodge Market Volatility Like a Pro

Market is volatile, but it’s a good time to invest in these midcap funds.
The honk of the global trade wars between the top economies of the world and spiking crude oil prices have already created cautiousness amongst investors. Further, concerning the domestic market, the hike in the interest rates and uncertain political environment are other few reasons which became the reason for prominent worry lines on their foreheads.

Simply, it can be stated that the market is choppy and volatility is at its peak. However, we believe in the expression of the famous author Craig Turnbull, “The Best time to invest is when everyone else is afraid to do so.” Thus, the experts at MySIPonline suggest investors to go with multi-cap funds which provide the benefits across the market capitalization. Seeing the trend, most of the multi-caps have a higher inclination towards large-caps with reasonably good exposure to high-growth investment areas in the mid-cap space.

Henceforth, we have filtered out a few of the best performers who have been compared on the basis of their returns and risk parameters. Let’s find out more about them!

 1.Axis Focused 25 Fund 

This schemes of Axis Mutual Fund is an equity-oriented multi-cap fund which is highly tilted towards large-cap equity instruments. It has provided growth of 19.28% in last one year as on June 22, 2018, and an absolute return of 44.4% in the year 2017. Axis Focused 25 Fund aims to offer consistent results and has been ranked two by Crisil in the category of diversified equity funds. Mr. Jinesh Gopani has been managing this scheme, and he is highly experienced in the financial sector. Generally, he targets approximately 70% large cap and 25-30% mid-cap, and 0-2% small-cap companies. The investments are generally made in finance, technology, automotive, and chemical sector.

2.Aditya Birla Sun Life Equity Fund

This fund seeks to generate capital appreciation in the long run and regular income by predominately investing in equities, i.e., 90% of the total assets and 10% in debt and money market instruments. It functions on both the top-down and bottom-up approach, and a significant part of the fund is also invested in IPOs, emerging sectors, and other primary market offerings. The fund manager Mr. Anil Shah believes in businesses which offer visible and consistent earnings growth at reasonable valuations. This shows his bias towards growth. However, there are times when he proactively looks out for well-run businesses with no immediate triggers but available at a deep value. Thus, it can be stated that Aditya Birla Sun Life Equity Fund follows a blend of growth and value styles of investing. Currently, the total assets under its watch amount to Rs. 9,376 crores as on May 31, 2018.

3.Motilal Oswal Multicap 35 Fund

This schemes of Motilal Oswal MF is for those investors who wish to earn long-term capital appreciation through investment in equity and related instruments spread across a maximum of 35 stocks only and can tolerate moderately high risk. It is jointly managed by is jointly managed by Mr. Gautam Sinha Roy, Mr. Swapnil Mayekar, and Mr. Abhiroop Mukherjee. With a total assets base amounting to Rs 13, 181 crores as on May 31, 2018, the fund is completely sector and market-cap agnostic. Motilal Oswal Multicap 35 Fund has beaten both its category and benchmark with good margins in the past three years.

4.Invesco India Contra Fund

This scheme of Invesco India MF is also an equity-oriented multi-cap fund with 97.69% investment in equity and related instruments. Financial, Energy, Automobile, Technology, and FMCG are the sectors in which Invesco India Contra Fund has invested majorly. The fund managers Mr. Amit Ganatra and Taher Badshah believe in taking contrarian bets as far as their investment strategy is concerned. It was launched on September 11, 2007, and has provided 14.79% average return since then.

5.Tata Equity PE Fund

The fund of Tata MF is an equity-oriented multi-cap fund with more than 70% of its investment in stocks having a trailing P/E ratio less than BSE Sensex at the time of investment. Tata Equity PE Fund aims to provide capital appreciation in the long run. With assets under its watch amounting to Rs 3,924 crores, it has successfully provided trailing return of 11.66, 16.30, 25.48, 17.44 percent in one, three, five, and seven years period, respectively. It has majorly invested in Financial, Energy, Automobile, and construction sector.

Table Showing Past Returns and Risk Measures of the Recommended Schemes
top 5 multicap fund

It should be remembered that the data considered above depicts the past performance of the fund, and as it is impossible to predict the performance one can gain in future, it is not a wise decision to just run behind the returns. A lot of essential factors are present which you should consider before stowing your hard-earned money. You can even consider a personalized expert recommendation to learn about the best-suited schemes as per your portfolio, and that too free of cost. For this, you just need to connect with the experts at MySIPonline via mail or call.

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