Multicap Mutual Funds invest in various types of equity funds; they invest in stocks across market capitalization. In other words, a multi cap portfolio may comprise of large cap, mid cap and small cap stocks. They are less risky as compared to a mid-cap or small cap fund. They offer exceptionally good returns, if not the best in the market. Since they are not confined to any particular market segment, they are relatively less riskier.
Here are the top 5 multi cap funds for 2016, the data is based on September 2016 and is subject to change.
- ICICI Prudential Value Discovery Fund – The fund was launched on August 16, 2004 and has delivered 23.19 percent per annum since inception. Over a 3, 5 and 10-year period, it has delivered 32.65 percent, 24.57 percent and 16.91 percent returns per annum. The expense ratio is 2.55 percent and the AUM size is Rs. 14,661 crore. Mrinal Singh has been the fund manager since 2001.
Instead of looking for deep-value stocks, it chooses stocks with strong growth potential, but trading at a discount. The parameters that are used include relative market capitalization and price to book value. In the past few years, the large cap corpus has been raised to around 70 percent while the exposure to mid-caps have come down to 27 to 30 percent.
- Birla Sun life Advantage Fund – A veteran of a fund, it was launched on February 24, 1995 and has delivered 19.05 percent per annum since inception. The fund has delivered 37.25 percent in 3 years, 21.59 percent in 5 years and 12.34 percent in 10 years per annum. The expense ratio is 2.44 percent, with an AUM size of Rs. 1,665 crore. The fund manager is Satyabrata Mohanty, who has been with the fund since 2011.
- Birla Sun Life Equity Fund – This fund was launched on August 27, 1998. It has delivered 23.18 percent, 31.75 percent in 3 years, 22.02 percent in 5 years and 14.10 percent in 10 years per annum. The fund has delivered 25.33 percent return per annum since it was launched. The AUM size is Rs. 2,985 crore and the expense ratio is 2.31 percent. The fund manager is Anil Shah, who has been with the fund since October 2012.
- SBI Magnum Multicap Fund – This fund was formed on September 29, 2005. It has delivered 29.65 percent, 21.21 percent and 10.32 percent in a 3, 5 and 10-year period per annum. Since launch, it has delivered 13 percent return per annum. SBI Magnum Multicap Fund has an asset size of 1096 crore and an expense ratio of 2.24 percent. The fund manager is Richard D’souza who has been with the fund since 2011.
- Franklin India Prima Plus Fund – An old horse in the field, the fund has been around since September 29, 1994. It has delivered 27.17 percent, 19.50 percent and 15.18 percent in a 3, 5 and 10-year period per annum. Since launch, the fund has delivered 19.36 percent returns per annum. The AUM size is Rs.9285 crore and the expense ratio is 2.28 percent. There are two fund managers, Anand Radhakrishnan (since 2011) and R. Janakiraman (since Feb 2011). The fund traditionally has been concentrating on the track record of companies, their ability to create wealth on a sustained manner in an adaptive environment and their future strategies.