Mutual funds: Why invest in multi-cap funds now?
Individuals are increasingly investing in multi-cap funds of mutual funds because of the volatility in the market. Data from the Association of Mutual Funds of India (Amfi) show net inflows in multi-cap funds touched Rs 3,569 crore in the month of September, the highest in the equity funds category.
Multi-cap funds invest in diversified stocks of large-cap, mid-cap, and small-cap across sectors. These funds capitalise on the opportunities across market caps and generate optimal returns for investors. Last year, the markets regulator changed the guidelines of investments in which multi-cap funds have to invest a minimum of 25% each in large-cap, mid-cap, and small-cap stocks.