2. Cap-funds:- ‘cap fund’ a stock mutual fund that
invests in equity securities without regard to
whether a company is characterized as small,
medium or large. The term “cap” is shorthand for
capitalization
3. Multi-cap Funds:- These funds invest in stocks
across market capitalization that is,their portfolio
comprises of Large cap ,Mid cap & Small cap stocks.
They are relatively less risky compared to pure mid
cap or small cap funds and suitable for not – so
aggressive investor.
Multicap funds is the best choice of fund for India
retail investment who is looking to invest small amount
of money in the market every month through (SIP)
4. Type of multi cap fund
Large cap:- Refers to a company whit a market capitalization value of more the $
10 billons large cap is a shortened version of the term ‘ large market capitalization
by multiplying the number of a company shares outstanding by its stock price per
share.
Small cap:-is a term used to classified companies with a relatively small market
capitalization the definition of small cap can very among brokerages, but it is
generally a company with a market capitalization of between $300 million & $2
billions”
Mid cap fund:- is a type of stock fund that invest in mid- size companies. A
company's size is determined by its market capitalization with mid-sized firm
generally ranging form $ 2 billion to 10 $ billion in market capital.
5. Difference b/w Small cap, Mid cap & large
cap
When a mutual fund is described in terms of market cap
(i.e.Small cap, mid cap or large cap) its indicates the size
of the companies in which the fund invests, not the market
cap. Is calculated as the number of shares outstanding
multiplied by the current market price of one share
6. Let me explain
Let us assume that you want to invest 5000/- per
month as SIP what will be allocation plan is like …
Large cap funds
Small cap funds
Mid cap funds
7. Kind of investor Large-cap Mid-cap Small-cap
Very aggressive investor 1000/- 2000/- 2000/-
Aggressive investor 2000/- 2000/- 1000/-
Not so aggressive
investor
3000/- 1000/- 1000/-
8. Characteristics of Multicup portfolio
Freedom
Multicap portfolios are medium of investment where your equty mutual
fund portfolio consists of different market cap stocks in one. Such
portfolios allow the freedom to your scheme’s fund manager to pick up
the stocks that suit the investment objective irrespective of their market
cap size. That means, your portfolio is less reliable on the market cap
size. Multicap funds can be distinctly diversified throughout the market
with a wider scope for growth and asset allocation.
Flexibility
Since flexibility is all that newbie investors look for, multicap mutual fund
schemes are a good choice. Multicap funds offer flexibility for
opportunities across the market. Expert fund managers find opportunities
of growth across the market and implement the ideas without capital size
restrictions. Lately, multicap funds have shown good performance with
the positive changes in the economy. Multicap funds are generally
considered favorite for the moderate rick investors.
9. Risk regulation
In the process of wealth creation in equity, risk is bound inherently. Multi-cap funds
give freedom for the capital sizes restriction. Novice young investors generally
prefer multi-cap funds to invest while learning the markets. The risk in multi-cap
fund is often mitigated in an easier way during the volatile situations. The ups and
downs in sectorial or market cap size of a stock do not affect a good multi-cap fund.
They are the risk regulation in your wealth creation journey.
• Impact
Market are unstable. The correction may occur as per the market scenario and they
are highly impactful on your equity mutual fund portfolio. Multi-cap funds are
typically designed to find higher growth opportunities in the rising markets.
Positive economic changes may boost the performance of a good multi-cap
portfolio and may also help reduce the negative impact in the bearish market
10. Returns
An average investor finds it difficult to choose form large-cap or
mid-cap companies in the portfolio Thus. By evaluating and
investing in a good mutual fund scheme, they can benefit in
different market condition as stock selection decisions are made
by expert fund managers. Keep in mind that the risk involved in
multi-cap funds may change as they have a larger universe of
stocks to choose form. Comparatively lesser number of stocks in
portfolio with a wise diversification makes a good portfolio.
11. Schemes Of Mutual Fund
Schemes
According to
Maturity
Open
Ended
Close
Ended
According to
Investment
Balanced
Fund
Gilt Fund
Money
Market
12. Balanced Fund
The aim is to provide both growth & regular Income.
In this scheme the fund is invest both in equity & fixed income
securities.
This scheme is appropriate for investors, who looking for moderate
growth.
13. Gilt Fund
This fund invest exclusively in govt. securities.
Govt. security have no risk.
It affect by fluctuation of interest rate.
14. Money Market
This funds are also income funds & their aim is to provide easy
liquidity.
These schemes invest exclusively in safer short term instruments.
Return is less
This funds are appropriate for corporate & individual investors.
15. Why multicap funds?
Multicap funds is the best choice of fund for India
retail investor who is looking to invest a small
amount of money in the market every month
through (SIP).
If one has to choose only one find to invest in
the in the market his choice of a find should
always be a multi-cap funds.
