5 Best Multicap Mutual Fund SIPs To Consider In 2021-22

A Multicap fund, as the name implies, invests in firms with big, mid, and small market capitalizations, providing diversification across market caps in its portfolios. SEBI has given explicit criteria for asset allocation across distinct market size sectors that the Multicap Mutual Fund category must follow. At any given time, multi-cap funds must have at least 75 percent of their assets in equities and equity-related products. At least 25% of the portfolio's assets must be allocated to large-cap equities, 25% to mid-cap stocks, and another 25% to small-cap stocks. Here are the 5 best multi-cap funds based on the best SIP performance in the last three years.

Quant Active Fund Direct

Quant Active Fund Direct-Growth is a tiny fund in its category, with assets under management (AUM) of 1,189 crores. The fund's expense ratio is 0.5 percent, which is lower than the expense ratios charged by most other Multi Cap funds.
The 1-year returns for the Quant Active Fund Direct-Growth are 89.33 percent. It has returned an average of 22.21 percent per year since its inception. The fund has top ranking from CRISIL rating agency.

ITC Ltd., Reliance Industries Ltd., State Bank of India, Vedanta Ltd., and Fortis Healthcare (India) Ltd. are the fund's top five holdings. With a diverse portfolio of Large Cap, Mid Cap, and Small Cap companies, the programme strives to provide long-term capital appreciation and income.

Edelweiss Recently Listed IPO Fund

Edelweiss Recently Listed IPO Fund Direct - Growth has assets under management (AUM) of 805 crores, making it a medium-sized fund in its category. The fund's expense ratio is 1.14 percent, which is greater than the expense ratios charged by most other Thematic funds.

Edelweiss Recently Listed IPO Fund Direct has a 1-year growth rate of 85.28 percent. It has returned an average of 22.18 percent per year since its inception. The programme aims to deliver capital appreciation by investing in newly listed 100 businesses' stock and equity-related assets, as well as upcoming Initial Public Offerings (IPOs).

Kotak India Growth Fund Series

The Kotak India Growth Fund Series 4 Direct-Growth is a medium-sized fund with assets under management (AUM) of 86 crores. The fund's expense ratio is 0.34 percent, which is lower than the expense ratios charged by most other Multi Cap funds.

Kotak India Growth Fund Series 4 Direct has a 1-year growth rate of 79.25 percent. It has returned an average of 21.30 percent every year since its inception. The scheme aims to create capital appreciation by investing in a diverse portfolio of equities and equity-related securities across a range of market capitalizations and sectors. The NAV of Kotak India Growth Fund Series 4 for Nov 02, 2021 is 20.43.

Mahindra Manulife Multi Cap Badhat Yojana

The fund is invested in Indian stocks to the tune of 97.05 percent, with 44.06 percent in large cap stocks, 24.02 percent in mid cap stocks, and 26.43 percent in small cap stocks. As of 30/09/2021, Mahindra Manulife Multi Cap Badhat Yojana Direct - Growth has assets under management (AUM) of Rs.783 crores, making it a minor fund in its category. The fund's expense ratio is 0.66 percent, which is lower than the expense ratios charged by most other Multi Cap funds.

Mahindra Manulife Multi Cap Badhat Yojana Direct has a one-year growth rate of 87.45%. It has returned an average of 20.84 percent every year since its inception. The strategy aims to generate medium to long-term capital appreciation by diversifying appropriately and minimising business risks.

Baroda Multi Cap Fund

The fund is invested in Indian stocks to the tune of 96.86 percent, with 34.03 percent in large cap stocks, 18.18 percent in mid cap stocks, and 27.26 percent in small cap stocks. Baroda Multi Cap Fund Direct-Growth is a medium-sized fund in its category, with assets under management (AUM) of 1,156 crores. The fund's expense ratio is 1.54 percent, which is greater than the expense ratios charged by most other Multi Cap funds.

The 1-year returns for the Baroda Multi Cap Fund Direct-Growth are 78.30 percent. It has had an average yearly return of 16.15 percent since its inception.

5 Best Multicap Mutual Fund SIPs To Consider In 2021-22

Fund Name	AUM in Cr	3 Year Return
Quant Active Fund	1188.84	103.93%
Edelweiss Recently Listed IPO Fund	804.98	94.36%
Kotak India Growth Fund	86.47	87.87%
Mahindra Manulife Multi Cap Badhat Yojana	783.16	84.27%
Baroda Multi Cap Fund	1155.58	72.94%

Conclusion

Because these funds invest in mid- and small-cap equities as well as large-cap firms, they are riskier than large-cap funds. In a strong economy, a multi-cap fund manager can increase his exposure to mid- and small-sized companies to profit from higher earnings.
Before adding a Multicap Fund to their portfolio, investors should carefully assess their existing Mutual Fund investments and current exposure to the various market cap segments. Multicap funds are not appropriate for investors with a time horizon of less than 5-7 years or a low risk tolerance.