Evaluating a mutual fund scheme’s performance calls for comparing its annual returns with those of similar schemes under the same category of funds. There is a slew of factors which together indicate the performance of a mutual fund scheme. Among others, one of the key factors is the returns posted by the mutual fund scheme.
Here we assess the performance of multi-cap funds in short and medium term i.e., in the past one and three years, respectively:
What are multi-cap funds? Multi cap funds are mutual fund schemes that invest in companies across market capitalisation i.e., small cap, mid cap and large cap.
As per SEBI guidelines, multi cap funds are meant to allocate a minimum of 75 percent of the investment corpus to equity and equity-related instruments. However, minimum investment in each category has to be at least 25 percent of the total corpus.
According to the latest AMFI (Association of Mutual Funds in India) data for the month of June, there are a total of 14 schemes under this category.
The net inflow for the month of June was ₹970 crore, and net assets under management (AUM) as on June 30, 2022 was ₹53,297 crore.
One-year returns: In the past one year, some multi-cap fund schemes gave negative returns for instance ITI multi cap fund gave 11.95 percent return and Invesco India Multi cap fund gave 4.03 percent return.
However, some fund schemes delivered high returns too. The top-performing funds gave high returns such as Nippon India Multi Cap Fund gave 11.38 percent return in past one year ending June 30, 2022 and Quant Active Fund gave 5.42 percent return.
| Multi cap schemes | 1-year return (%) |
| Nippon India Multi Cap Fund | 11.38 |
| Quant Active Fund | 5.42 |
| Baroda BNP Paribas Multi Cap Fund | 4.50 |
| ITI Multi Cap Fund | -11.95 |
| Invesco India Multicap Fund | -4.03 |
(AMFI data as on June 30, 2022)
Three-year returns: The top performing multi-cap mutual fund schemes gave return in the range of 14-27 percent per annum. For instance, Quant Active Fund gave 27.66 percent return, Mahindra Manulife Multi Cap Badhat Yojana gave 19.73 percent return and Baroda BNP Paribas Multi Cap Fund gave 15.57 percent return.
| Multi-cap schemes | 3-year return (%) |
| Quant Active Fund | 27.66 |
| Mahindra Manulife Multi Cap Badhat Yojana | 19.73 |
| Baroda BNP Paribas Multi Cap Fund | 15.57 |
| Invesco India Multicap Fund | 14.96 |
| Baroda BNP Paribas Multi Cap Fund | 15.57 |
(AMFI data as on June 30, 2022)
Key details on the top-performing multi-cap fund schemes:
Quant Active Fund: It was launched in March 2001. It has delivered a return of 18.57 percent since inception. This means ₹1,00,000 invested in the scheme would have now swelled to ₹37,22,800.
The key stocks in the portfolio include ITC, SBI, Vedanta, Ruchi Soya, L&T, Linde India, Adani Enterprises, IRB Infra, Fortis, Adani Ports.
Mahindra Manulife Multi Cap Badhat Yojana: The scheme was launched in May 2017. Since inception the scheme has given a return of 14.42 percent (for direct plan). In other words, an investment of ₹one lakh invested in the fund scheme would have swelled to ₹1,99,880.
The top stock holdings in the fund scheme include Infosys, RIL, SBI, ICICI Bank, ITC, Maruti Suzuki, Hindustan Aeronautics and L&T Infotech.