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DSP Mutual Fund has launched a new open-ended multi-cap equity fund, DSP Multicap Fund, intending to generate long-term capital appreciation. The fund’s New Fund Offer (NFO) is open from January 8th to 22nd, 2024. There is no entry load, and the minimum subscription amount is Rs 100.
A Multicap fund is a type of mutual fund that invests in companies of all sizes, from large-cap (the biggest companies in the market) to mid-cap (medium-sized companies) to small-cap (the smallest companies). This diversification can help to reduce risk and provide investors with exposure to a wider range of growth potential. Multicap funds are a good option for investors who are looking for long-term capital appreciation and who are comfortable with a moderate level of risk.
The investment objective of the scheme is to seek to generate long-term capital appreciation from a portfolio of equity and equity-related securities across market capitalisation.
| Instruments | Indicative Allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Equity and equity related securities of which: | 75% | 100% | Very High Risk |
| – Large cap companies | 25% | 50% | |
| – Mid cap companies | 25% | 50% | |
| – Small cap companies | 25% | 50% | |
| Equity and equity related overseas securities | 0% | 25% | Very High Risk |
| Debt and Money Market Instruments | 0% | 25% | Low Risk to Moderate Risk |
| Units issued by REITs & InvITS | 0% | 10% | Very High Risk |
The performance of the scheme will be benchmarked against Nifty 500 Multicap 50:25:25 TRI
Chirag Dagli, Age: 44 Years, more than 22 years of professional experience
Jay Kothari (Dedicated Fund Manager for overseas investments), Age: 42 years, more than 18 years of experience
| Scheme Name | AuM (Cr) | 6M | YTD | 1Y | 2Y | 3Y | 5Y | 10Y |
| Axis Multicap Fund – Direct Plan – Growth | 0.00 | 24% | 1% | 41% | 18% | – | – | – |
| Axis Multicap Fund – Direct Plan – Growth | 4,622.26 | 24% | 1% | 41% | 18% | – | – | – |
| Mahindra Manulife Multi Cap Fund – Direct Plan – Growth | 2,664.68 | 26% | 2% | 40% | 19% | 29% | 25% | – |
| Baroda BNP Paribas Multi Cap Fund – Direct Plan – Growth | 2,022.13 | 20% | 1% | 33% | 14% | 23% | 21% | 17% |
| ITI Multi Cap Fund – Direct Plan – Growth | 723.83 | 26% | 1% | 43% | 22% | 20% | – | – |
| Edelweiss Recently Listed IPO Fund – Direct Plan – Growth | 943.20 | 20% | 1% | 38% | 5% | 18% | 22% | – |
| Edelweiss Maiden Opportunities Fund – Series I – Direct Plan – Growth | 521.10 | 20% | 1% | 38% | 5% | 18% | 22% | – |
| Invesco India Multicap Fund – Direct Plan – Growth | 2,894.78 | 22% | 1% | 34% | 14% | 22% | 20% | 20% |
| Kotak Multicap Fund – Direct Plan – Growth | 7,080.30 | 27% | 1% | 43% | 26% | – | – | – |
| Nippon India Multicap Fund – Direct Plan – Growth | 22,695.37 | 22% | 1% | 41% | 26% | 32% | 20% | 19% |
| Sundaram Multi Cap Fund – Direct Plan – Growth | 2,201.48 | 22% | 0% | 33% | 14% | 23% | 19% | 19% |
| Kotak India Growth Fund – Series IV – Direct Plan – Growth | 120.65 | 23% | 0% | 39% | 21% | 26% | 27% | – |
| Kotak India Growth Fund – Series IV – Direct Plan – Growth | 94.18 | 23% | 0% | 39% | 21% | 26% | 27% | – |
| Quant Active Fund – Direct Plan – Growth | 6,681.34 | 23% | 1% | 26% | 18% | 29% | 27% | 24% |
| ICICI Prudential Multicap Fund – Direct Plan – Growth | 10,341.54 | 22% | 0% | 37% | 19% | 24% | 19% | 19% |
Multi-cap funds are well-suited for investors who find it challenging to navigate the complexities of individual stock selection and predict the performance of specific market capitalisations. These funds provide a solution by allowing fund managers the flexibility to adjust holdings among large, mid, and small-cap stocks based on market conditions. This adaptability makes multi-cap funds ideal for those seeking a diversified investment approach without the need to constantly monitor market cap biases.
Wealth managers often recommend these funds, particularly for investors utilizing systematic investment plans (SIP) with a long-term horizon of 10 years or more, providing a balanced exposure to different market segments. Investors need to stay committed for at least five years to ride out market cycles and benefit from potential growth
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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