Mutual funds are an amazing way to build wealth in a slow-steady manner without losing sleep or taking inadvertent risks. In line with this, I have written a post earlier to share the advantages of investing in Mutual Funds irrespective of the market situation.
Now coming to the question at hand, Should we invest in Multi-Cap Mutual Funds
Multi-Cap Mutual Funds unlike thematic or focused funds invest in companies across the market without due focus on the Market Capitalization. This achieves two goals
- Risk is spread across the portfolio
- Returns are assured different companies click during different cycles of the economy
This advantage does come with its downside as Multi-Cap Mutual Funds tend to average out returns in comparison to focused funds. Despite this, these funds are useful when
- Inflation is on a rise
- Global Uncertainty persists
- Disruption in supply chain
In the year 2022, we are facing many of these issues along with Ukraine-Russia Conflict. Owing to this, it would be helpful to select a low expense ratio Multi-Cap Fund that can provide growth during this turbulent period.
Also, let us look at the Multi-Cap funds that an investor can choose to opt for in the coming days
- Nippon India Multi-Cap Fund
- Axis Multi-Cap Fund
- SBI Multi-Cap Fund
- ICICI Multi-Cap Fund
- Invesco India Multi-Cap Fund
This is just a review-based suggestion. Kindly do your due diligence prior to investing in the markets.
Hope this helps