Final Up to date on Jan 31, 2025 by Anjali Chourasiya
Multi cap funds supply the steadiness of large-cap funds and the multibagger potential of small-cap funds whereas maintaining the chance publicity reasonable. Like flexi-cap funds, multi cap fund managers spend money on firms throughout totally different market capitalisations evenly. For those who’re trying to discover multi cap funds, right here’s the listing of greatest multi cap funds derived utilizing Tickertape Mutual Fund Screener.
Finest Multi cap funds in India
| Mutual fund plan | AUM (Rs. in cr.) | CAGR 5Y (%) | CAGR 3Y (%) | Expense Ratio (%) | Volatility (%) | Minimal Lumpsum (Rs.) |
| Quant Lively Fund | 5,688.19 | 25.82 | 33.05 | 0.77 | 13.64 | 5,000 |
| Kotak India Development Fund-Sr 4 | 114.36 | 24.11 | 29.85 | 0.34 | 9.91 | 0 |
| Mahindra Manulife Multi Cap Fund | 2,119.98 | 22.99 | 31.28 | 0.43 | 11.52 | 1,000 |
| Nippon India Multi Cap Fund | 20,930.45 | 20.11 | 37.88 | 0.97 | 9.97 | 100 |
| Baroda BNP Paribas Multi Cap Fund | 1,881.30 | 18.43 | 26.70 | 1.12 | 9.26 | 5,000 |
| Invesco India Multicap Fund | 2,695.18 | 17.73 | 26.57 | 0.71 | 9.42 | 1,000 |
| Sundaram Multi Cap Fund | 2,098.70 | 17.08 | 26.46 | 0.94 | 8.48 | 100 |
| ICICI Pru Multicap Fund | 8,837.36 | 16.55 | 28.47 | 1.03 | 8.75 | 5,000 |
| ITI Multi-Cap Fund | 664.67 | 0.00 | 22.57 | 0.5 | 10.37 | 1,000 |
Observe: The above info is dated eleventh October 2023. The parameters used to filter the listing of prime flexi cap funds on Tickertape’s Mutual Fund Screener are:
- Class > Fairness > Multi Cap Fund
- Plan – Development
- 5Y CAGR – Set excessive to low
Taxation on Mulitcap Mutual Funds as per the 2024 Finances
Since multi cap funds fall underneath the class of fairness funds, they’re topic to the identical taxation guidelines as different fairness mutual funds. The Union Finances 2024 has launched important modifications to the taxation of fairness mutual funds, simplifying the tax construction whereas altering charges and advantages. Here’s a detailed breakdown of the brand new tax guidelines:
Brief-Time period Capital Positive factors (STCG)
For those who maintain fairness mutual funds for lower than a 12 months, the positive aspects from these investments are categorized as short-term capital positive aspects. In line with the brand new funds, these positive aspects are actually taxed at a fee of 20%, which has been elevated from the earlier fee of 15%.
Lengthy-Time period Capital Positive factors (LTCG)
For fairness mutual funds held for greater than a 12 months, the positive aspects are thought-about long-term capital positive aspects. The important thing factors to notice underneath the brand new funds are:
- Tax-Free Restrict: Positive factors as much as Rs. 1.25 lakh in a monetary 12 months stay tax-free. This restrict has been elevated from the earlier threshold of Rs. 1 lakh.
- Tax Price: Any positive aspects above Rs. 1.25 lakh are taxed at a flat fee of 12.5%. It was beforehand taxed at 10%.
- Indexation: It’s necessary to notice that the good thing about indexation, which beforehand allowed buyers to regulate the acquisition value of their property for inflation, has been eliminated for all asset lessons, together with fairness mutual funds.
Indexation is a technique used to regulate the acquisition value of an asset (like property or gold) for inflation over time. This adjusted value is then used to calculate capital positive aspects. Beforehand, long-term capital positive aspects from promoting property, gold, or different unlisted property have been taxed at 20%, however you could possibly use indexation to cut back your taxable revenue. The brand new rule simplifies the tax construction by setting a flat 12.5% tax fee for all long-term capital positive aspects. Nonetheless, it removes the indexation profit.
Abstract
| Capital Positive factors Tax | Holding Interval | Outdated Price | New Price |
| Brief-Time period Capital Positive factors (STCG) | Lower than 12 months | 15% | 20% |
| Lengthy-Time period Capital Positive factors (LTCG) | Greater than 12 months | 10% | 12.50% |
- No Indexation Profit: This alteration impacts the general tax legal responsibility, doubtlessly growing it for long-term buyers.
Benefits of investing in multi cap funds
- Portfolio diversification – Fund managers of multi cap funds make investments throughout massive, small, and mid-cap firms.
- Minimises threat – For the reason that funds are invested throughout totally different market capitalisations, multi cap funds minimise the chance related to the funding.
- Choice of shopping for – You possibly can spend money on each – lumpsum and SIP funding modes, whichever method you’re comfy with.
- Optimum returns – For the reason that mutual fund supervisor constantly updates the multi cap mutual fund portfolio, an investor can take pleasure in optimum returns whereas minimising the dangers.
Who ought to spend money on multi cap funds?
Buyers aiming for prime progress with decrease market threat ought to discover multi cap mutual funds. To determine the perfect multi cap mutual fund, contemplate elements like funding horizon, objectives, and threat tolerance.
Furthermore, as these funds supply numerous asset allocations, deciding on the best one is essential for attaining monetary targets. Due to this fact, with Tickertape Mutual Fund Screener, you possibly can consider the efficiency of multi cap funds on totally different basic standards and determine the perfect multi cap fund which aligns along with your monetary targets.
