The three boldest multi-cap funds right now

Summary: Some multi-cap funds are playing it bold, really bold. They’ve parked more than half of your money in smaller companies, chasing higher growth potential. Let’s find out which funds are taking the biggest bets, and how those bets are playing out. Multi-cap funds have a simple yet powerful idea behind them. They give fund managers the freedom to invest across large, mid and small companies while maintaining a balance among them. As per SEBI’s rules, every multi-cap fund must invest at least 25 per cent each in large-cap, mid-cap and small-cap stocks. The remaining 25 per cent can be allocated freely across any of these categories based on the fund manager’s view of market opportunities. This flexible mandate allows multi-cap funds to benefit from the relative stability of large caps and the higher growth potential of mid and small caps. It’s also what makes them a popular “core” equity option for many investors. In fact, as of now, over 1.07 crore unique investors have put their faith in multi-cap funds, which together manage a whopping Rs 2.1 lakh crore in assets, as per data retrieved from AMFI (Association of Mutual Funds in India). Because these funds must mandatorily hold stocks across all three market-cap segments, their real differentiator can lie in how much they tilt towards smaller companies. The most aggressive multi-cap funds Funds that have a higher exposure to small-cap and mid-cap stocks are typically considered more aggressive. That’s