A mutual fund that has given excellent returns

Top 3 Multi Cap Mutual Funds in India These schemes beat the benchmark index returns in the last five years. 

Multi-cap mutual funds 

These are the funds that gave super returns

Before investing in a mutual fund scheme, it is necessary to pre-weigh several factors such as the type of fund, macroeconomic factors, reputation of the fund manager and most importantly - the past returns provided by the scheme.

If you are planning to invest in multi-cap mutual funds, you may want to prioritize those that have consistently given good returns over the past five years. Here we briefly list those that have managed to beat the benchmark index returns.

Multi-cap funds

Multi-cap mutual funds refer to mutual fund schemes that invest at least 65 percent of their assets in equity and equity-related instruments in stocks of different sectors and segments of the market.

They are also known as diversified equity funds and diversification reduces the risk of overexposure to a few stocks, sectors and sectors. Here, we look at the top performing schemes in the multi-cap funds category that have given the benchmark index returns over the last five years.

First,  Quant Active Fund: This scheme was launched on February 12, 2001 and has given 19 percent returns since inception. Treps, HDFC Bank, RIL, Aurobindo Pharma and State Bank of India are major constituent stocks. Its AUMs stand at ₹503 crore.

Second, Mahindra Manulife Multi Cap Fund: It was launched on May 11, 2017 and has given an annualized return of 15.42 percent since inception.

HDFC Bank, RIL, Tech Mahindra, Titagarh Rail Systems and Birlasoft are the major constituents. Its AUMs are ₹2,120 crore.

Three, Nippon India Multi Cap Fund: It was launched on March 28, 2005 and has given an annualized return of 17.80 percent since its inception.

HDFC Bank, Linde India, EIH, Axis Bank and ICICI Bank are its major holdings. AUMs of the scheme are ₹20,192 crore.

Overall, multi-cap funds are a good option for investors who are looking for a diversified and growth-oriented equity investment. However, investors should be aware of the risks associated with investing in mid-cap and small-cap stocks before investing in multi-cap funds.

Here are some tips for choosing a multi-cap fund

Look at the fund's track record: Choose a fund with a good track record of performance over at least 5 years.

Consider the fund's investment strategy: Make sure that the fund's investment strategy is in line with your own risk tolerance and investment objectives.

Pay attention to the fund's expenses: Choose a fund with low expenses.

Please consult with a financial advisor before making any investment decisions.