Top Mutual Funds For The Long-Term Investor: HDFC Multi Cap Fund

HDFC Multi Cap Fund

The multi-cap fund will be benchmarked against the NIFTY 500 Multicap 50:25:25 Index, which has 50 percent weight to large-caps, and 25 percent each to mid and small-caps. Investors looking for a blended portfolio are better suited to invest in multi-cap funds.

To fill the shortfall in this product area, mutual funds have been creating multicap schemes. Last year, SEBI changed the requirements for multi-cap funds. Multi-cap funds must invest 25% of their assets in mid-cap, small-cap, and large-cap equities, according to SEBI regulations. The remaining 25% may be invested at the discretion of the fund manager.
The multi-cap fund will be measured against the NIFTY 500 Multicap 50:25:25 Index, which gives large-caps 50% of the weight and mid- and small-caps 25% each. Multi-cap funds are better suited to investors seeking a diversified portfolio.

HDFC Multi Cap Fund
HDFC Multi Cap Fund

HDFC Asset Management Company has introduced the HDFC Multi Cap Fund’s New Fund Offer. The programme will invest a minimum of 25% of its total assets in large, mid, and small cap companies, with the remaining 25% allocated based on the fund manager’s market view.

The stock selection process for the HDFC Multi Cap Fund will be a mix of top down and bottom up. The scheme will invest 60 percent to 75 percent of its total assets in large and mid-cap stocks, according to its present investment strategy. It would also invest 25 percent to 40 percent of its total assets in small-cap stocks. The fund will invest without regard to style, with the goal of capturing opportunities in growth, value, and turnaround businesses.

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