Generate a Significant Fund via SIP with Multi-Cap Funds Yielding 52% Growth in Last 1 Year: Key Insights

If you seek to invest in a scheme with lower risks where you can earn higher returns than FDs, you can invest in multi-cap schemes of mutual funds. Funds in this category have provided returns of up to 52% in the last 1 year.

Understanding Multi-Cap Funds

Multi-cap funds invest in large-cap, mid-cap, and small-cap stocks. According to SEBI’s new regulations, multi-cap funds must allocate 25-25% of their assets in large-cap, mid-cap, and small-cap stocks. Fund managers are required to maintain at least 75% of their investments in equity and equity-oriented funds.

Less Risk Involved

If you desire to invest in equity funds but do not want high exposure to risk, you can invest in top-rated multi-cap funds. These funds offer a diverse portfolio based on market capitalization.

Who Should Invest in Multi-Cap Funds?

Investors who seek exposure to equity but are not willing to take on higher risks can invest in these funds. It’s a good option for investors who want a balance between risk and stability in their portfolio.

Better Off with SIP

Instead of investing a lump sum in mutual funds, individuals should consider investing through a Systematic Investment Plan (SIP). Through SIP, you invest a fixed amount every month, which reduces the impact of market volatility. Additionally, SIP allows you to create a larger fund with simplicity.