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Visit Our ABCD PageAditya Birla Capital Limited (“ABCL”) is a listed systemically important nondeposit taking Non-Banking Financial Company (NBFC) and the holding company of the financial services businesses. ABCL and its subsidiaries/JVs provides a comprehensive suite of financial solutions across Loans, Investments, Insurance, and Payments to serve the diverse needs of customers across their lifecycles. Powered by over 68,400 employees, the businesses of ABCL have a nationwide reach with over 1,740 branches and more than 200,000 agents/channel partners along with several bank partners.
Nationwide Branches
1,740
No. of Employees
68,400
Agents/Channel Partners
2,00,000+
Aggregate Assets
INR 5.91 Lakh Cr
Consolidated Lending Book
INR 2 Lakh CrHealth Insurance
Housing Finance
Life Insurance
Mutual Funds
Personal Insurance
SME Finance
Stock & Securities
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Aditya Birla Capital Limited (“ABCL”) is a listed systemically important nondeposit taking Non-Banking Financial Company (NBFC) and the holding
company of the financial services businesses. ABCL and its subsidiaries/JVs provides a comprehensive suite of financial solutions across Loans,
Investments, Insurance, and Payments to serve the diverse needs of customers across their lifecycles. Powered by over 68,400 employees, the businesses of ABCL have a nationwide reach with over 1,740 branches and more than 200,000 agents/channel partners along with several bank partners.
Nationwide Branches
1,740
No. of Employees
68,400
Agents/Channel Partners
2,00,000+
Aggregate Assets
INR 5.91 Lakh Cr
Consolidated Lending Book
INR 2 Lakh CrCorporate Governance Policies
Financial and Debt-Related Policies
Business and Partnership Policies
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Invest in companies across market capitalisation to get a diversified portfolio with a good return potential.
With investment across market caps, you get a diversified portfolio of some of the top companies in the stock market.
You can benefit from the increased return potential of small and mid-cap stocks while enjoying the stability of large-cap stocks.
Multi-cap mutual funds are actively managed schemes wherein the fund managers try to mitigate risks and enhance returns.
The ability to invest dynamically across large, mid, and small-cap stocks allows the fund manager to adapt to different market conditions and potentially optimise returns.
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*Projections/estimations is backtested using historical data.
Most Popular

*Projections/estimations is backtested using historical data.
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
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Multi-cap mutual funds are diversified equity mutual funds which invest at least 25% of their portfolio in equity securities of companies in each market capitalisation.
Allocation in small, mid and large-cap equity securities
High risk-return trade-off
Suitable for investors with a long-term investment horizon
Invest through SIPs or lump sum
Earn tax-free returns up to Rs.1 lakh if you stay invested
Market capitalisation means the total value of a company’s shares
The total number of listed shares is considered for calculation
The current market value is taken to calculate the market cap
Formula -
Market capitalisation = total number of outstanding shares X current market value per share
These funds primarily invest in large-cap stocks and secondary focus is on small-cap and mid-cap stocks. These are relatively safer as they avoid the volatility of small-cap and mid-cap stocks.
These are funds that focus highly on small-cap or mid-cap stocks and try to make the most of their growth potential. Meanwhile, the large-cap part is only a cushion against volatility.
These funds pick and choose investments across market capitalisations while focusing only on the potential of these stocks to outperform and provide you with considerable returns.
A long-term investment horizon is suitable
You can invest for 5 years or above for attractive returns
You also get a tax benefit on staying invested for a longer tenure
Returns up to Rs.1 lakh are tax-free if you stay invested for 12 or more months
Returns exceeding Rs.1 lakh are taxed at 10%
For redemption within 12 months, returns are taxed at 15%
Dividends earned, if any, are taxed at your income tax slab
Earn dividends on your investment at regular intervals
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
Since multi-cap funds are equity investments, they have the potential to be volatile in the short run. If you plan to invest long-term, the risk decreases significantly.
Multi-cap funds are equity investments that perform better in the long run. It is generally advised to stay invested in them for 5-6 years to reap better benefits.
• First-time Investors: A first-time investment should ideally bring enough of a sense of security and safety along with the shining potential of returns. Multi-cap funds can provide the right balance for your initiation.
• Investors in a dilemma: If you are confused as to the market capitalisation you should invest in, multi-cap funds are your go-to, as they will provide you with a balanced, all-round experience across market caps.
• Investors with a long-term investment horizon: If you stay invested for 5+ years in multi-cap funds, the benefits of compounding could serve you well. If this horizon aligns with your financial goals, multi-cap funds are for you.
• Investors seeking mid and small-cap exposure without taking too much risk: With any kind of concentration, multi-cap funds offer you a minimum cushion of large-cap funds
against the volatility of mid-cap and small-cap funds
.
Multi-cap funds maintain a diverse mix, including small-cap, mid-cap, and large-cap companies. Flexi-cap funds, on the other hand, are known as open-ended, dynamic equity funds without any market capitalisation mandate.
Like all equity investments, the suitability of both these funds is subjective. Multi-cap funds with greater mid-cap and small-cap components suit investors with an investment horizon of 5-7 years and high-risk appetite. Meanwhile, flexi-cap funds focusing on large-caps suit investors with a similar horizon but a lower risk appetite due to lower market volatility risk.
You can invest in multi-cap funds either through SIP (Systematic Investment Plan) or a lumpsum amount or a lumpsum amount. You can start your SIP at as low as ₹100. However, please confirm the specific minimum investment limit with your fund house.
While you need to be aware of market volatility and other equity market risks, you can stay assured of the safety factor of multi-cap funds. Like any other equity investment, they are regulated by financial law and the SEBI (Securities Exchange Board of India). Plus, they have highly experienced and credible fund managers to support you.
Usually, multi-cap funds do not have a lock-in period. You can redeem/withdraw your investment anytime with an exit load. However, staying invested for 5-7 years is advised to explore the high-return potential.
Some of the risks of investing in multi-cap funds are as follows -
• Adhering to allocation rules can affect the fund manager’s decisions to explore the market potential of higher returns.
• The same factor also might affect risk cushioning and impact overall fund performance.
• At times, there is a challenge in picking small-cap and mid-cap funds in the mix as they might come with higher volatility, higher risk, and lower liquidity.
Before investing in multi-cap funds, ensure that you are prepared for the risks and that the fund is aligned with your investment objectives, investment horizon, risk appetite,
etc.
You will get regular dividends if you choose the IDCW option under multi-cap funds. However, the dividend income would be taxed in your hands at your income tax slab rates.
Multi-cap funds must maintain a minimum of 25% allocation across each market capitalisation. This means that at least 25% of the portfolio is invested in large-cap, midcap and small-cap securities each.
Yes, they may invest in multi-cap funds, since these funds will give them exposure to all kinds of market capitalisations through one single portfolio. The security of large-cap stocks will safeguard them against the possible downturns of mid-cap and small-cap stocks . This way, they can balance risks and returns, and figure out a way ahead as to what their risk tolerance, investment horizon, and other factors look like.
Single-cap markets tap into only one capital market. All kinds of stocks and funds have their own positives and negatives. It is important to try and test the risk-return scenario of all kinds of capitalisations, especially for novice investors. This can provide returns while cushioning against risks as well. Once they figure this out, novice investors can then switch to a single-capitalisation fund based on what they are most comfortable with.
Multi Cap Funds have shown an average of 22.08% p.a. returns in the past 5 years. The 3-year and 10-year annualised returns are 27.68% and 20.0% p.a. respectively.
Multi-cap mutual funds, unlike large-cap, small-cap, or mid-cap funds, invest in a mix of stocks with all 3 market capitalisations. There is no regulatory structure determining the size of companies they invest in.
The fund manager
can decide to fluctuate the proportion of stocks invested in each type of market capitalisation as per market behaviour. For example, when they notice the economy growing, they could increase mid-cap and small-cap allocations to capitalise on the growth potential and provide you with better return potential. Similarly, if the market is on the downlow, they can decide to increase your large-cap allocation for safety against the high risks of mid-caps and small-caps in such environments.
Risk appetite: The risk taken by your fund manager should align with your personal risk tolerance. The approach of the fund manager with each category can be different. For example, they could pick the less risky mid-cap and small-cap stocks instead of the more volatile ones.
Investment goals: You need a clear idea of what you want to achieve from your investment. This includes how long you can stay invested, how much you can invest, and what kind of returns are you looking for. Ideally, a multi-cap fund is suited for investors looking for a balanced portfolio and willing to stay invested for 5+ years.
The primary benefit of investing in Multi Cap funds is the opportunity to diversify your investments across various sectors.
Multi Cap funds primarily fall into categories with significant emphasis on large-cap holdings, substantial focus on mid/small-cap stocks, and those without specific concentrations.
Invest in funds listed and traded on the stock exchange
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