I want to invest in multi cap fund as I already have investments in HDFC Top 200 and HDFC Prudence. I want to know the advantage of multi caps and if it is a good time to invest in them?
- Manish Patel
As a class of funds, multi-cap funds are meant to weather all kinds of market conditions and come up winners. These funds are allowed to go anywhere across value or growth, across the spectrum of capitalization where they see returns within permitted risk levels. Value Research classifies multi-cap funds as those which have between 40 to 60 per cent of their assets in large-cap companies over the last three years.
But, these funds are risky and depend a lot on the fund manager’s ability to take calls and get them right. Make sure you understand the risks associated with multi-cap funds before investing in them. You can invest in any of the funds listed below; all of these are good performing multi cap funds with a performance track record to make their case.
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This article was originally published on February 04, 2011.