7 Best Multicap Mutual Funds to invest in 2019

Top and Best Multicap Mutual Funds to invest in India in 2019Best Multicap Mutual Funds to invest in 2019


Multicap Mutual Funds are also known as Diversified mutual funds invest in various stocks from large cap, midcap, smallcap segment. While no one can predict how a particular segment would perform in the near term or medium to long term, it is always advisable to invest in diversified stocks or Multicap Mutual Funds to avoid excessive investment in particular segments. Which are the Best Multi Cap Funds to invest in 2019? Which are the top and best Diversified mutual funds to invest in India that can fetch you higher returns in the medium to long term?

Also Read: Best Largecap Funds to invest in India 2019

What are Diversified or Multicap Mutual Funds?


Diversified equity fund invests in companies regardless of whether they are large caps or mid caps or small caps. A diversified or multicap equity fund invests in companies regardless of size and sector. It diversifies investments across the stock market in a bid to maximize gains for investors.

These equity funds invest in companies like:

1) Large companies also called large caps, due to their huge market capitalization or market caps.

2) Mid-sized companies or mid caps with medium capitalizations.

3) Smaller companies or small caps with smaller market capitalizations

How Does a Multicap Fund or Diversified Fund Work?


Diversified funds invest in companies across sectors and industries. This way it can participate in growth across the economy and is not tied down to a particular sector or industry.

They can choose to invest in companies from various sectors like:

1) Pharmaceuticals / Healthcare

2) Technology / Information Technology

3) Engineering

4) Automobiles

5) Power / Utilities

6) Banking and Financial Services

7) Oil and Gas

Who can invest in Multicap Mutual Funds in India?


Any of the following can invest in these Multi cap funds.

1) Investor with high risk appetite for investing in equities and mutual funds.

2) Investors who have long-term goals like retirement planning, saving for child’s education or daughter’s marriage or creating wealth.

3) Investors who can invest at least for 8-10 years (medium to long term).

Who cannot invest in these Diversified funds?


Investors with low risk or medium risk and investors who want to invest in for the short term should not invest in these funds.

How we filtered these Multicap Mutual Funds to invest?


We have filtered these funds based on some of the below key parameters:

1) Diversified funds that are investing in large cap/midcap/smallcap/debt instruments based on their investment objectives.

2) Funds that have performed well in the last 3-10 years time frame. We have given preference for long term returns which shows consistent performance.

3) Funds that are rated as 2 star, 3 star, 4 star and 5 star by Value Research Online. There are certain funds that have performed well in terms of returns, however VRO ranked them as low (1 star) due to various other parameters of ranking. We have ignored them as of now.

4) We have added some funds that have a low Beta compared to its category (these would be low volatile compared to other funds).

5) Funds that have AUM of over Rs 500 Crores size.

6) Some of the funds recommended here are repetition from our earlier article.

7 Best Multicap Mutual Funds to invest in 2019


Let us jump into the top Multicap Mutual Funds to invest now in 2019

Top#1 – SBI Focused Equity Fund


This fund was earlier called as the SBI Emerging Business Fund.

What is its investment objective?

The MF scheme seeks to provide the investor with the opportunity of long-term capital appreciation by investing in a concentrated portfolio of equity and equity related securities.

Performance of the fund

1) This fund has given 24% annualized returns in the last 10 years, 19% annualized returns in the last 5 years and 16% annualized returns in the last 3 years.

2) If you have invested Rs 1 Lakh about 10 years back, your investment would have grown to Rs 8.78 Lakhs by now.

3) If you have invested Rs 1 Lakh about 5 years back, your investment would have grown to Rs 2.36 Lakhs by now.

4) If you would have invested Rs 1,000 per month through SIP in the last 10 years, your investment would have been Rs 1.2 Lakhs (1,000 x 120 months) and your investment value would have now grown to Rs 2.9 Lakhs.

Why to invest in this fund?

This fund performed well in the last 5-10 years and gave 24% annualized returns in the last 10 years. Its Beta is 0.89 compared to category average beta of 0.95 (means this fund fluctuates/increases/drops at the lowest percentage compared to fluctuation in index). Value Research Online Rates it as 4 Star. This is one of the best Multicap Mutual Funds to invest in India in 2019.

Top#2 – Franklin India Focused Equity Fund


This fund was earlier called as Franklin India High Growth Companies.

What is its investment objective?

The scheme seeks to achieve capital appreciation through investing predominantly in Indian companies/sectors with high growth rates or potential.

Performance of the fund

1) This fund has given 21% annualized returns in the last 10 years, 19% annualized returns in the last 5 years and 15% annualized returns in the last 3 years.

2) If you have invested Rs 1 Lakh about 10 years back, your investment would have grown to Rs 6.7 Lakhs by now.

3) If you have invested Rs 1 Lakh about 5 years back, your investment would have grown to Rs 2.3 Lakhs by now.

4) If you would have invested Rs 1,000 per month through SIP in the last 10 years, your investment would have been Rs 1.2 Lakhs (1,000 x 120 months) and your investment value would have now grown to Rs 2.9 Lakhs.

Why to invest in this fund?

This fund performed well in the last 5 years and gave 19% annualized returns. Its Beta is 0.95 compared to category average beta of 0.95 (means this fund fluctuates/increases/drops at same percentage compared to fluctuation in index). Value Research Online Rates it as 4 Star. This is one of the good Diversified or Multicap Mutual Funds to invest in India in 2019.

Also Read: 10 High Return Mutual Funds to invest in India

Top#3 – Reliance Multi Cap Fund


This fund was earlier called as Reliance Equity Opportunities which is one of my favorite diversified fund, which I have been recommending in the last 5 years.

What is its investment objective?

The scheme aims to invest in stocks across those sectors and industries where India’s strong inherent potential is increasingly becoming visible to the world, which are driving our economy and whose fundamental future growth is influenced by ongoing economic reforms, FDI inflows and infrastructural changes.

Performance of the fund

1) This fund has given 21% annualized returns in the last 10 years, 15% annualized returns in the last 5 years and 15% annualized returns in the last 3 years.

2) If you have invested Rs 1 Lakh about 10 years back, your investment would have grown to Rs 6.8 Lakhs by now.

3) If you have invested Rs 1 Lakh about 5 years back, your investment would have grown to Rs 2 Lakhs by now.

4) If you would have invested Rs 1,000 per month through SIP in the last 10 years, your investment would have been Rs 1.2 Lakhs (1,000 x 120 months) and your investment value would have now grown to Rs 2.6 Lakhs.

Why to invest in this fund?

This is one of the best performing diversified mutual fund in the last 10 years. Its Beta is 1.0 compared to category average beta of 0.95 (means this fund fluctuates/increases/drops at a higher percentage compared to fluctuation in index). Value Research Online Rates it as 2 Star.

Top#4 – HDFC Equity Fund


What is its investment objective?

The scheme seeks to generate capital appreciation / income from a portfolio, predominantly invested in equity & equity related instruments.

Performance of the fund

1) This fund has given 19% annualized returns in the last 10 years, 15% annualized returns in the last 5 years and 19% annualized returns in the last 3 years.

2) If you have invested Rs 1 Lakh about 10 years back, your investment would have grown to Rs 5.7 Lakhs by now.

3) If you have invested Rs 1 Lakh about 5 years back, your investment would have grown to Rs 2 Lakhs by now.

4) If you would have invested Rs 1,000 per month through SIP in the last 10 years, your investment would have been Rs 1.2 Lakhs (1,000 x 120 months) and your investment value would have now grown to Rs 2.5 Lakhs.

Why to invest in this fund?

This fund performed well in the last 5 years and gave 15% annualized returns. Its Beta is 1.06 compared to category average beta of 0.95 (means this fund fluctuates/increases/drops at higher percentage compared to fluctuation in index). Value Research Online Rates it as 4 Star. This is one of the Best Diversified Funds to invest in 2019.

Top#5 – Aditya Birla Sun Life Equity Fund


What is its investment objective?

The fund seeks long-term growth of capital and regular income through 90% investment in equities and 10% in debt and money market securities. The scheme would adopt top-down & the bottom-up approach of investing & a portion of the scheme will also be invested in IPOs, emerging sectors & other primary market offerings.

Performance of the fund

1) This fund has given 18% annualized returns in the last 10 years, 17% annualized returns in the last 5 years and 17% annualized returns in the last 3 years.

2) If you have invested Rs 1 Lakh about 10 years back, your investment would have grown to Rs 5.3 Lakhs by now.

3) If you have invested Rs 1 Lakh about 5 years back, your investment would have grown to Rs 2.2 Lakhs by now.

4) If you would have invested Rs 1,000 per month through SIP in the last 10 years, your investment would have been Rs 1.2 Lakhs (1,000 x 120 months) and your investment value would have now grown to Rs 2.6 Lakhs.

Why to invest in this fund?

This is one of the consistent performing mutual fund in the last 5-10 years. It has a low expense ratio compared to its peers. Its Beta is 0.95 compared to category average beta of 0.95 (means this fund fluctuates/increases/drops at same percentage compared to fluctuation in index). Value Research Online Rates it as 5 Star. This is one of the Top  Funds from Multicap segment to invest in India.

Top#6 – Canara Robeco Equity Diversified Fund


What is its investment objective?

The scheme aims to generate capital appreciation by investing in equity and equity related securities. The scheme would follow bottom-up investment style by identifying companies with strong competitive position in good business and having quality management. Being an open-ended scheme, some portion of the portfolio may be invested in money market instruments so as to meet the normal repurchase requirements.

Performance of the fund

1) This fund has given 18% annualized returns in the last 10 years, 14% annualized returns in the last 5 years and 17% annualized returns in the last 3 years.

2) If you have invested Rs 1 Lakh about 10 years back, your investment would have grown to Rs 5.1 Lakhs by now.

3) If you have invested Rs 1 Lakh about 5 years back, your investment would have grown to Rs 1.9 Lakhs by now.

4) If you would have invested Rs 1,000 per month through SIP in the last 10 years, your investment would have been Rs 1.2 Lakhs (1,000 x 120 months) and your investment value would have now grown to Rs 2.3 Lakhs.

Why to invest in this fund?

This is one of the best mutual fund in diversified segment that showed consistent performance in various stock market cycles. Its Beta is 0.92 compared to category average beta of 0.95 (means this fund fluctuates/increases/drops at a lower percentage compared to fluctuation in index). Value Research Online Rates it as 3 Star.

Top#7 – Franklin India Equity Fund


This fund was earlier called as Franklin India Prima Plus.

What is its investment objective?

The scheme aims to provide growth of capital and regular dividend from a portfolio of equity, debt and money market instruments and focusing on wealth creating companies across all sectors and market cap ranges.

Performance of the fund

1) This fund has given 18% annualized returns in the last 10 years, 16% annualized returns in the last 5 years and 12% annualized returns in the last 3 years.

2) If you have invested Rs 1 Lakh about 10 years back, your investment would have grown to Rs 5.1 Lakhs by now.

3) If you have invested Rs 1 Lakh about 5 years back, your investment would have grown to Rs 2.1 Lakhs by now.

4) If you would have invested Rs 1,000 per month through SIP in the last 10 years, your investment would have been Rs 1.2 Lakhs (1,000 x 120 months) and your investment value would have now grown to Rs 2.5 Lakhs..

Why to invest in this fund?

Its Beta is 0.89 compared to category average beta of 0.95 (means this fund fluctuates/increases/drops at a lower percentage compared to fluctuation in index). Value Research Online Rates it as 3 Star. This is one of the good Multi cap Mutual Funds to invest in India.

You may like: Best Midcap Mutual Funds to invest in 2019 for high risk investors

Please note that we recommended Mirae Asset IndiaOpportunities fund in this article, however, this fund is now converted to Largecap fund, hence we have excluded this fund now from this list

Summary of the Multicap Mutual Funds for 2019


Best Multicap Mutual Funds to invest in India in 2019


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Suresh

Best Multicap Mutual Funds to invest in 2019

10 Comments

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  1. sir, can you publish an article about funds which are relatively new, example 2 or 3 years but due to fund house or fund manager, are looking promising. Specifically funds with small AMU.

    1. Sure Ram. Give me some time on this

  2. Someone that I talked to, suggested a liquid fund with STP to a multi cap fund of around 5 years. And for the same duration I compared that with FD with lock in period of 5 years, the difference in return generated is around only 10-12k. Therefore I am getting confused.

    Can you please enlighten me?

    1. Hello Abhishek, Mutual Funds can provide good returns in medium to long term of say 5- 10 years. When I say this it depend on various factors, fund manager performance, political situtation. Hence it is believed 5-10 years is good time frame. some times it may take even lesser time to get good returns. In the last 2 years if you observe, mid-cap/small-cap/multicap has not provided any higher returns, hence you are seeing this lower returns and comparing with FDs. If you are short term to medium term investor (< 5 years), better to invest in bank FDs or short term mutual fund schemes. If you are okay to invest for 5-10 years you can go for multicap funds.

  3. Hi Suresh

    Mirae Asset India Equity Fund is not multicap fund it is now Large Cap fund .

    1. Thank you Pankaj. By the time we have written this article (draft, not yet posted) it was still multi-cap. This fund is being now converted into largecap.

  4. I think you have intentionally dropped KOTAK SELECT MULTICAP FUND..any way above all are best multicap funds

    1. Hello Rahul, There is NO Kotak Select multicap fund. Looks you were referring Kotak Standard Multicap fund. Yes this was not considered as we considered funds that are existing over 10 years. This fund came in less than 10 years time frame. However if you are investing in this fund, you can continue to invest

  5. Why is kotak multicap not on the list??

    1. Yes this was not considered as we considered funds that are existing over 10 years. This fund came in less than 10 years time frame. However if you are investing in this fund, you can continue to invest

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