These days if you want to invest in a place where you get higher interest than fixed deposit ie FD, then you can invest in mutual fund multi cap scheme. It has given investors a return of up to 92% in the last one year. You too can make a profit by investing in it.
The multi-cap fund invests in large cap, mid cap and small cap. The above three categories have their own offers and risks, which Multicap incorporates in its own way. Of Sebi According to the rules, the market By capitalization, the top 100 companies are large-cap, followed by mid-cap and small-cap companies. According to SEBI’s new rules, multi-cap funds are required to hold 25-25 per cent share in large-cap, mid-cap and small-cap funds. The fund manager is required to have at least 75% investment in equity and equity oriented funds.
Suppose the fund manager has a total of Rs.100 of investors. Here the fund manager has to invest a minimum of Rs. 75 in equity and equity oriented funds. In which one has to invest Rs. 25-25 in Large Cap, Mid Cap and Small Cap. The remaining Rs 25 can be invested by the fund manager at his discretion.
If you want to invest in equity funds but do not want to take high-risk exposure, you can invest in high-end multi-cap funds. These funds also vary widely in terms of market capitalization. When the market is stable, these funds may offer lower returns than small and medium cap funds, but these funds are less risky in volatile market conditions. Therefore, if you are looking for such a fund then multi cap funds may be the right investment option for you.
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