What are Multi-cap Mutual Funds | Best Multi-cap Fund to Invest |
One of my favorite categories of Mutual funds is the Multi-cap fund. Every mutual fund investor must have one multi-cap fund in their portfolio.
What is a Multi-cap fund?
As depicted in the above picture, A Multi-cap fund is an open-ended equity scheme that invests across large-cap, mid-cap, and small-cap stocks.
There is no restriction with regards to minimum allocation to large-cap, mid-cap, or small-cap stocks. Here the fund manager has complete control to decide the amount of money that can be invested in large-cap, mid-cap, or small-cap stocks.
One of the best performing Multi-cap funds is the Kotak Standard Multi-cap fund.
Here is the complete Review of this Fund:
Mutual Fund House: Kotak Mahindra Mutual fund (Established 1998)
Fund (Scheme) Name: Kotak Standard Multi-cap Fund (Started on Sept 11 2009)
AUM (Asset under Management): This fund has AUM of Rs.23,881 Cr on March 2019.
AUM (Asset under Management): This fund has AUM of Rs.23,881 Cr on March 2019.
Below is the Investment Strategy of this fund:
This fund follows the Top-down approach for investment.
What is a Top-down approach?
In a top-down approach, the fund manager evaluates the impact of economic factors first and narrows down on the industries that are suitable for investment. Thereafter, the companies are analyzed and the good stocks within the identified sectors are selected for investment.
Top-down approach minimizes the chance of being stuck with large exposure to a poor sector.
This fund follows the Top-down approach for investment.
What is a Top-down approach?
In a top-down approach, the fund manager evaluates the impact of economic factors first and narrows down on the industries that are suitable for investment. Thereafter, the companies are analyzed and the good stocks within the identified sectors are selected for investment.
Top-down approach minimizes the chance of being stuck with large exposure to a poor sector.
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| www.kotakmf.com |
Return Performance:
As shown below, this fund has given good returns in 7-yr, 5-yr, and 3-yr Period. It has beaten the benchmark returns in 7-yr, 5-yr, and 3-yr Period. Overall returns performance is very good.
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| www.kotakmf.com |
Risk Measures:
The standard deviation of this fund is less than the benchmark and other funds of this category making this fund a less volatile fund. Also has a better Sharpe ratio and Alpha reflecting good performance.
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| www.valueresearchonline.com |
Portfolio allocation (Market cap)
This Multi-cap cap fund currently invests more in large-cap companies close to 75%. This makes this fund less volatile and risky.
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| www.valueresearchonline.com |
Sector Allocation:
This fund has kept a high allocation towards the financial sector. This is a common trend across the category. Top 3 sector allocation is close to 60%.
This fund has kept a high allocation towards the financial sector. This is a common trend across the category. Top 3 sector allocation is close to 60%.
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| www.kotakmf.com |
Investment in Top 10 Companies:
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| www.kotakmf.com |
Summary:
- This is the biggest multi-cap fund in the category that shows investor trust in the fund.
- This is a large-cap oriented multi-cap fund. Good for investors who do not want to take a risky bet.
- This is a moderately low risk and high return fund.
- This Fund is managed by famous fund manager Mr. Harsh Upadhya.
- It is one of the best performing multi-cap funds in the category. This is a must-have fund in your Multi-cap shortlist.
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