Bandhan Multi Cap Fund - Direct Plan
Bandhan Multi Cap Fund - Direct Plan
Multi Cap Fund -An open-ended equity scheme investing across large cap, mid cap, small cap stocks
What is a Multi Cap Fund?
Multi Cap funds invest in equity and equity-related stocks of companies. These companies vary in market capitalization. Essentially, a Multi Cap mutual fund invests in small-cap, mid-cap and large-cap companies, allowing you to diversify your investments and find a scheme that suits your risk appetite. As the fund manager can find investment opportunities across the market, a Multi Cap fund is a suitable option for wealth creation.
There are many types of Multi Cap funds. As per SEBI, all Multi Cap funds must allocate 25% of their assets to large cap, mid cap and small cap stocks, i.e. 75% of the asset allocation is fixed. The remaining 25% can be focused on either cap, consequently focusing the assets of the fund on one cap. These include the following:
Multi Cap Funds Focused on Large Cap Stocks: Such Multi Cap mutual funds are primarily focused on investing in large cap stocks.
Multi Cap Funds Focused on Small/Mid Cap Stocks: These Multi Cap mutual funds primarily invest in mid and small cap stocks. They invest in large cap stocks for security as per the minimum mandate of 25%
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
a) If redeemed/switched out within 1 year from the date of allotment- 1% of applicable NAV.
b) If redeemed / switched out after 1 year from date of allotment: Nil.
Scheme is suitable for a minimum investment horizon of more than 5 years
Tier 1 Benchmark : NIFTY 500 Multicap 50:25:25 TRIAlternate Benchmark : Nifty 50 TRI
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Performance as on 28th March 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 02/12/2021 Since inception | 1 year | 3 year | 5 year | 10 year | 02/12/2021 Since inception | |
| Bandhan Multicap Fund - Regular Plan - Growth | 43.29 | N.A. | N.A. | N.A. | 17.86 | 14,343 | N.A. | N.A. | N.A. | 14,641 |
| 51.27 | 22.85 | 19.52 | 17.80 | 17.20 | 15,145 | 18,571 | 24,412 | 51,512 | 14,454 | |
| 33.11 | 16.75 | 15.37 | 14.16 | 12.57 | 13,322 | 15,935 | 20,451 | 37,653 | 13,163 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Daylynn Pinto (w.e.f 02/12/2021) & Mr. Harshal Joshi (w.e.f 02/12/2021)
View fund performance of other funds managed by Mr. Daylynn Pinto, Mr. Harshal Joshi
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/3spfzbo
Bandhan Multi Cap Fund
(Scheme Risk-o-meter)
NIFTY 500 Multicap 50:25:25 TRI
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To create wealth over a long term.
- Investment in a portfolio of large, mid and small cap equity and equity related securities.
What are the Benefits of Multi Cap Mutual Funds?
Multi Cap equity funds have several benefits. These include:
Flexibility: Multi Cap funds invest across market capitalizations including small, mid and large cap stocks. It invests minimum 25% in each cap and for the remaining 25% the Fund manager has the flexibility to change asset allocation depending on market conditions.
Diversification: Multi Cap funds invest across market capitalisations. This allows the investor to diversify their portfolio. A balanced portfolio is relatively less risky.
Potential Returns: Multi Cap Mutual Funds could offer relatively higher returns, although this depends on several factors.
How does a Multi Cap Fund differ from Flexi Cap Fund?
Multi Cap vs flexi cap funds:
While Multi Cap Funds and Flexi Cap Funds both invest across market capitalization. But, Multi Cap funds invests at least 25% in each small, mid and large cap companies and the remaining 25% is invested in either of the caps. Whereas, Flexi Cap funds invest across market capitalization and there is no minimum threshold to be followed while investing in small, mid and large cap companies.
Who Should Invest in Multi Cap Equity Funds?
Multi Cap mutual funds invest in small, mid and large cap stocks; consequently, they have some risk associated with them. They have greater risk than large-cap funds as they look for investment opportunities in small and mid-cap funds. Multi Cap mutual funds have some degree of volatility associated with them.
They are suitable for investors looking to create potential wealth in the long-term. Additionally, these funds are suitable for investors looking to invest in funds with a portfolio of small, mid and large cap equity and equity related securities.
Multi Cap mutual funds are subject to capital gains tax, depending on the period for which the units were held before selling. Multi Cap schemes are not suitable for investors looking to save tax.
FAQs on Multi Cap Funds
What is a Multi Cap fund?
A Multi Cap fund is a type of mutual fund that invests in equity and equity-related stocks of companies. These companies belong to various market capitalisations. It is mandatory for the fund to allocate 25% of their assets to small, mid and large cap stocks each, i.e. 75% of the total assets have a mandated allocation. The remaining 25% can be invested in any market capitalisation.
Is a Multi Cap fund good for the long term?
Multi Cap funds can potentially grow wealth in the long term. They are ideal for investors with long-term investment horizons.
How does a Multi Cap Fund differ from Flexi Cap Fund?
While Multi Cap Funds and Flexi Cap Funds both invest across market capitalization. But, Multi Cap funds invests at least 25% in each small, mid and large cap companies and the remaining 25% is invested in either of the caps. Whereas, Flexi Cap funds invest across market capitalization and there is no minimum threshold to be followed while investing in small, mid and large cap companies.
What is a Multi Cap equity fund?
A Multi Cap equity fund and Multi Cap fund are the same. It is a mutual fund investment scheme that invests in equity and equity-related stocks of companies of various market capitalisations.
Are Multi Cap funds risky?
Multi Cap growth funds are likely to be more risky than large cap funds. They have a moderate-risk-return profile.
What is the meaning of Multi Cap funds?
Multi Cap growth funds are a type of mutual fund that invest in equity and equity-related securities of small cap, midcap and large cap companies.