Mumbai: There was a period of selling in the stock market last week. This week has also started with a decline. Nearly Rs 20 lakh crore has been lost by investors in the last six trading days. In such a situation, retail investors are worried. Yes, those who have invested in mutual funds and have invested money in balanced investment funds, they are not worried.
Where is balanced investment?
Personal finance experts say that Multicap Funds can be a better tool for balanced investment. This is a scheme that invests in all market caps i.e. largecap, midcap and smallcap. While large cap shares provide protection in case of market decline, mid and small cap shares play an important role in providing profits. No single market cap can consistently outperform. Therefore investors should invest across all market caps under asset allocation.
advantage of diversification
Investment gurus say that your bouquet should contain all types of flowers. Simply, multicap fund works on this principle. Their risk and returns are focused on the overall market capitalization rather than on a single market. You also see that the returns of each market have been different. On an annual basis, the return of Nifty 100 TRI in the year 2023 has been 21 percent while the return of Nifty Midcap 150 TRI has been 45 percent. The return of Nifty Smallcap 250 TRI has also been 49%. A well-known name in multicap is Axis Mutual Fund. This fund has consistently given good returns to investors since its inception.
Where does investment take place
Multicap fund invests 25-25 percent in largecap, midcap, smallcap and dynamic. You must be aware that large cap funds invest in big companies. Midcap funds capture opportunities in midcap companies, while smallcap funds invest in emerging opportunities. If we talk about multicap of Axis Mutual Fund, then it has invested maximum in financial services, automobile and its parts, capital goods, healthcare, IT, realty and consumer durables. These are all such sectors which provide security to investors in every market environment as well as give good returns on their investments.
What is the return of which fund house?
Here we are referring to those multicap funds which have given more than 50 percent returns in the last one year. Among these, Axis’s Multicap has given the highest return of 56.02 percent. Kotak Multicap scheme has given a return of 52.83 percent, HSBC scheme has given a return of 51.90 percent and LIC Multicap scheme has given a return of 51.37 percent. If an investor had invested Rs 1 lakh in these funds a year ago, that amount would have now become Rs 1.56 lakh in a single year.