Of multi-cap and large and mid cap, which category is better?

Which equity fund category is better - multi-cap or large & mid cap?
- Abhinav

A multi-cap fund can invest in every segment of the equity market - small-, mid-, or large-cap stocks. A large and mid-cap fund is dominantly large cap but also invests in the mid-cap space.

In the current scenario, large and mid-cap may turn out to be better because, in my opinion, large caps lead the momentum during market turnarounds. But if you want to invest with a long-term horizon and with ease, then low-maintenance multi-cap funds are a better option, as fund managers have the complete flexibility to invest across the investable universe.

A few good options of multi-cap funds can be Motilal Oswal Multicap 35 Fund, Parag Parikh Long Term Equity Fund, SBI Focused Equity Fund, Kotak Standard Multicap Fund, etc.

This article was originally published on June 03, 2020.