Top 10 Diversified Multicap Mutual Funds to invest in India in 2018
Diversified or Multicap mutual funds would help in portfolio diversification as they invest in large cap, midcap and small cap companies. In case you are thinking that investing in too many mutual funds is confusing for you, you can choose investing in some of the top 10 best diversified Multicap mutual funds in India in 2018. What are diversified Multicap mutual funds? How do these diversified mutual funds perform better compared to investing in large cap or midcap/small cap funds? Which are the Top 10 Best Diversified Multicap mutual funds to invest in India in 2018? How do these top 10 diversified multicap mutual funds performing in the last 5 years and since inception of the mutual fund?
Also Read: Top 10 Best Mutual Funds to invest through SIP in 2018-2019
What are Diversified Multicap Mutual Funds?
If you aware about diversified funds, you can skip this section.
Diversified multi-cap mutual funds are those which invest in all categories of market cap like large cap stocks, mid-cap stocks and small cap stocks. Diversified fund’s investment objective is not restricted to single categorization. Such funds strategy would help in exploring numerous opportunities in various segments and one can expect higher returns when stock markets are fluctuating.
Who can invest in Diversified Multicap Mutual Funds?
You migh be investing in various mutual fund schemes. However every fund is pertaining a particular category like largecap or midcap or small cap or balanced fund. However, some segments would perform well in some market cycles. Diversified multicap funds invests in all these category of funds. Hence if you are thinking about investing in mutual funds which are not refrained to particular segment and looking for diversified portfolio of funds that can give you between 12% to 18% annualised returns, you should invest in these mutual funds. One can pick-up 2-3 funds from this category as part of their mutual fund portfolio.
How we filtered Top 10 Diversified Multicap Mutual Funds to invest in India in 2018
Some of the key parameters used to filter these top 10 mutual funds.
1) Investment objective and its performance in various market cycles are preference.
2) Top 10 Mutual Funds picked from the bunch of mutual funds that has generated high returns since the inception of the mutual fund.
3) These mutual funds are picked based on highest returns received in the last 5 years.
4) Funds that have limited downside in last 3 months to 1 year have been given preference.
5) Funds that gave highest returns with SIP option are given preference. Since most of the investors invest through SIP, accumulating highest value of the fund is the key goal here.
6) Funds that are rated by Crisil as Rank-1, Rank-2, Rank-3 and Rank-4 which indicates top performance across various market cycles.
7) Value research Online (VRO) rated these funds as 5 star, 4 star and 3 star indicating strong fundamentals in the mutual fund scheme.
8) AUM (Assets under management) > 500 Crores. This proves investor confidence among these top mutual funds.
9) Direct plans are ignored.
10) Some of these mutual funds might be a repetition from my earlier recommendation.
Top#1 – Franklin India High Growth Cos Mutual Fund
Fund Objective: This mutual fund objective is to provide capital appreciation through investments in Indian companies/sectors with high growth rates or potential. This fund would focus on companies offering the best trade-off between growth, risk and valuation.
Why to invest: This fund has been performing well compared to its peers in Multicap funds and stood in first place. This fund gave 23% annualized returns in the last 5 years, 14% annualized returns in the last 3 years and 32% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 107,000. This fund risk grade is “above average” and return grade is “above average”. This fund is rated by Crisil as Rank-4 and VRO as 4 Star. This fund gave 14.5% annualized returns since inception of this mutual fund, making this as one of the best diversified Multicap mutual funds to invest in 2018.
Top#2 – Tata Equity P/E Mutual Fund
Fund Objective: This mutual fund aims provide capital appreciation by investing 70% in stocks having a trailing P/E ratio less than that of the BSE Sensex.
Why to invest: This fund has been performing well compared to its peers in Multicap funds. This fund gave 22% annualized returns in the last 5 years, 18% annualized returns in the last 3 years and 34% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 112,000. This fund risk grade is “above average” and return grade is “above average”. This fund is rated by Crisil as Rank-1 and VRO as 3 Star. This fund gave 21% annualized returns since inception of this mutual fund making this as one of the top 10 diversified Multicap mutual funds to invest in 2018.
Top#3 – Aditya Birla Sunlife Advantage Fund
Fund Objective: The MF scheme aims to achieve long-term growth at relatively moderate levels of risk through a diversified investment approach.
Why to invest: This fund has been performing well compared to its peers in Multicap funds and stood on 3rd place. This fund gave 22% annualized returns in the last 5 years, 18% annualized returns in the last 3 years and 38% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 110,000. This fund risk grade is “average” and return grade is “high”. This fund is rated by Crisil as Rank-1 and VRO as 5 Star. This fund gave 19% annualized returns since inception of this mutual fund making this as one of the top diversified Multicap mutual funds to invest in 2018.
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Top#4 – Invesco India Contra Fund
Fund Objective: The mutual fund scheme aims to generate capital appreciation through contrarian investing. It intends to identify potentially undervalued stocks across sectors utilizing both top down and bottom up approach and then incubating such stocks for a while before they find favor with rest of the market.
Why to invest: This fund has been performing well compared to its peers in diversified funds. This fund gave 22% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 39% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 108,000. This fund risk grade is “average” and return grade is “above average”. This fund is rated by Crisil as Rank-3 and VRO as 4 Star. This fund gave 15% annualized returns since inception of this mutual fund making this as one of the best diversified Multicap mutual fund to invest in 2018 in India.
Top#5 – Aditya Birla Sunlife Equity Mutual Fund
Fund Objective: This mutual fund seeks long term growth of capital and regular income through 90% investment in equities and balance in debt and money market instruments. The scheme would adopt top-down & bottom-up approach of investing and it invests in IPO’s and emerging sectors.
Why to invest: This fund gave 21% annualized returns in the last 5 years, 16% annualized returns in the last 3 years and 30% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 108,000. This fund risk grade is “below average” and return grade is “above average”. This fund is rated by Crisil as Rank-2 and VRO as 4 Star. This fund gave 25% annualized returns since inception of this mutual fund making this as one of the top 10 diversified Multicap mutual funds to invest in India in 2018.
Top#6 – SBI Magnum Multicap Fund
Fund Objective: The MF scheme invests in equities / equity related instruments of companies spanning the entire market capitalization spectrum. The fund will invest 50% to 90% in large-cap stocks, 10% to 40% in mid-cap stocks and up to 10% in small-cap stocks.
Why to invest: This fund has been performing well compared to its peers in Multicap funds and stood in first place. This fund gave 21% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 32% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 105,000. This fund risk grade is “below average” and return grade is “above average”. This fund is rated by Crisil as Rank-2 and VRO as 5 Star. This fund gave 14% annualized returns since inception of this mutual fund making this as one of the 10 top diversified Multicap mutual funds to invest in 2018.
Top#7 – Principal Growth Fund
Fund Objective: The fund aims to generate long-term capital appreciation through investment primarily in equities of multiple capitalization.
Why to invest: This fund gave 21% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 44% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 108,000. This fund risk grade is “above average” and return grade is “above average”. This fund is rated by Crisil as Rank-2 and VRO as 4 Star. This fund gave 17% annualized returns since inception of this mutual fund making this as one of the good diversified Multicap mutual funds to invest in 2018 in India.
Top#8 – HDFC Capital Builder Fund
Fund Objective: The fund aims to invest in companies that are priced below their fair value thereby generating capital appreciation in the long-term.
Why to invest: This fund gave 20% annualized returns in the last 5 years, 15% annualized returns in the last 3 years and 38% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 103,000. This fund risk grade is “average” and return grade is “average”. This fund is rated by Crisil as Rank-3 and VRO as 3 Star. This fund gave 15% annualized returns since inception of this mutual fund making this as one of the best diversified mutual funds to invest in 2018.
Top#9 – DSP Blackrock Opportunities Fund
Fund Objective: The MF scheme main objective is to generate long term appreciation and other objective is for income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the investment focus of the scheme. The aim of this scheme is to strongly outperform plain vanilla equity funds which are far more diversified in their portfolio weightage, to minimize risk.
Why to invest: This fund has been performing well compared to its peers in Multicap funds and stood in first place. This fund gave 20% annualized returns in the last 5 years, 18% annualized returns in the last 3 years and 35% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 105,000. This fund risk grade is “average” and return grade is “above average”. This fund is rated by Crisil as Rank-3 and VRO as 4 Star. This fund gave 19% annualized returns since inception of this mutual fund making this as one of the best Multicap mutual funds to invest in 2018 in India.
Top#10 – SBI Magnum Multiplier Fund
Fund Objective: The fund seeks capital appreciation through investments primarily in equities in diversified portfolios.
Why to invest: This fund has been performing well compared to its peers in Multicap funds and stood in first place. This fund gave 20% annualized returns in the last 5 years, 16% annualized returns in the last 3 years and 34% annualized returns in the last 1 year. If an investor invested ₹ 5,000 per month through SIP for 5 years, the investment would have been ₹ 60,000 and your investment value would have now grown to ₹ 105,000. This fund risk grade is “below average” and return grade is “above average”. This fund is rated by Crisil as Rank-3 and VRO as 4 Star. This fund gave 15% annualized returns since inception of this mutual fund making this as one of the good Multicap mutual fund to invest in India in 2018.
Also Read: Best High Return – Low Risk Mutual Funds to invest in India
Consolidated list of Top 10 Diversified Multicap Mutual Funds to invest in India in 2018
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Suresh
Top 10 Diversified Multicap Mutual Funds to invest in India in 2018
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Sir which fand you recomended for senior citegen ,As SWP.Monthly 50000(fifty Thousand) constent incum.How much amout I have to invest.Your Advice please
I am planning to start investing in the following for my post-retirement needs.
1. ABSL frontline equity fund 1000/pm
2. Tata equity P/E fund 1000/pm
3. Mirae asset india equity 1000/pm
4. Kotak standard multicap 1000/pm
5. L&T Midcap fund 1000/pm.
my investment horizon is 18-20 years. have i made a wise choice of funds? should i add a small cap?
Good funds Sumitava. If you are high risk investor, you can add smallcap fund like Reliance Smallcap or Franklin India Smaller cos fund
Due to correction in mid & small cap, I increased SIPs in these funds. I am now investing 50K in L&T Emerging Businesses, 20K in Mirae Emerging Bluechip, 20K in Canara Robeco Emerging, 20K in SBI Small Cap funds. I have long horizon upto 20 years. Am I on right track ?
midcap/smallcap mutual funds are high risk. You can continue to invest if you are high risk taker
Dear Sir
I have invested 5000 SIP in ABSL frontline equity fund from january. I wanted to invest 2500SIP
in a multicap fund. Please recommend a suitable one.
You can look for Franklin India High Growth fund, Tata Equity P/E fund etc.,
Dear Sir,
I have invested in Franklin India High Growth fund through SIP mode from MAY2016. But in present scenario when I see my returns on VRO site & it is showing only 5.66 % return. Please suggest and describe is it a good to continue with the SIP of this FUND.
And why is it so that the returns is very less.
Hello Munish, All midcap/smallcap stocks are taking beating and hence you are seeing this in mutual funds too. This would continue for some more time. You can continue to invest as these are short term fluctuations
Invest in reliance small cap fund
Invest in reliance small cap fund for 20 years
Sir, I am a low salaried employees earn29000/- pm . I have invested MF i.e kotak select focus (3000/-),Most multicap 35 growth (2000/-) and Mirrae emerging blue chip (2000/-) pm through SIP, I Would like to invest another 3000/- pm through SIP. PL guide me whether need I an another fund house or may I invest above said fund house for at least 15 years. Can I gain 1crore after 15 years. Please reply expert s….
Instead of same funds, you can add another 1-2 funds like Birla SL Frontline equity fund or SBI Bluechip Mutual Fund or Franklin India smaller cos fund
Go for absl pure value fund
Dear Biswaranjan,
Do not add more funds. Add in the same funds
You may continue to invest in the same funds ….but if planning to invest in other funds look for diversification and avoid funds with same portfolio holdings which are already with you.
Respected Sir/Madam
I am 38 years old State Govt. Employee. My salary is 28000/-p.m. I invested 3500/-p.m in Postal Life Insurance last 6 years. I want to invest another 8000/-p.m. in mutual funds for my 2 sons education purpose (one is 8 years & another one is 3 years old). My target is 40 lakhs each in 10 & 15 years. I am planing to invest in below mentioned plans (SIP).
1. Aditya Birla Sun Life Tax Relief 96 Fund- Direct Plan (ELSS)- Rs.4000 p.m.
2. Kotak Select Focus Fund- Direct Plan (Large cap)- Rs.1000 p.m.
3. Franklin India High Growth Companies Fund- Direct Plan (Multi cap)- Rs.1000 p.m.
4. Mirae Asset Emerging Bluechip Fund – Direct Plan (Mid cap)- Rs.1000 p.m.
5. SBI Small & Midcap Fund- Direct Plan (Small cap)- Rs.1000 p.m.
I hope reply me.
Thanking you
Arunkumar Bagali
Vijayapur (Karnataka)
Good funds. However there is Tax relief fund which his ELSS fund. If your objective is tax savnig, you can invest, else considering other funds. You can add more largecap or diversified funds like Aditya Birla SL Frontline Equity Fund or ICICI Focussed blue chip or SBI Bluechip fund etc.,
Hello Sir,
My age is 27, married, no children,monthly income around 45k and we started our investments last year. My folio is
1. Hdfc Balanced funds – 50k lumpsum (20k more added this month)
2.hdfc prudence fund – 50 k lumpsum(20 k more added this month)
3.Reliance small cap fund – 1500 /month sip
4.sbi bluechip fund – 2500/month sip
Please suggest me what all funds i should add in my folio?
I can take moderate to high risk, currently doing sip of 4k but i can do 8 k sip every month.
In next 5 year we are planning to buy our own home in Mumbai and we are looking for excellent returns in next 15-20 years.
Please help me with your valuable suggestions
good to hear about you Shaun. Since you are young, you should invest in largecap funds and add a flavor of midcap/smallcap funds.
Sir.. l&t infrastructure direct ye fund thematic fund me ata hai..
isaki category kya hai
small cap mid cap ya diversified ya multicap am confused
Super suggestions regularly following the tips in mutual funds and for secondary market
Thank you Suman. Where are you investing your money?
putting lump some one lac each in 4 diversified funds and leave for 15 yrs.Should this be taken as good policy.
good strategy. Doing SIP is best strategy good. However doing in 3-4 lumpsum investments over a period of time is also good.
Hi Suresh
How do you keep track of your investment s? Is it on Excel or have you found any other useful application? Kindly share
Hi Nisha, I use simple excel. However since I do majority of my equity transactions (stocks, funds, ipo, nfo etc.,) through ICICIdirect, I would utilize the portfolio features in it. Yes, I agree that demat charges are high, but I am okay to bear them with the kind of features I use there.
I want to How safe is investment in mutual fund Do Mortality charges,fund management charges,brokerage,commission deducted from Investment amount.what other charges are deducted from investment amount.what are the locking periods for mutual funds.How many and what charges are deducted from L I C Plans of Icici pru life.Every one in bank and others highly insist on purchasing and and investment but never tell various charges and hidden charges Plese guide
helo suresh ji
thanku for such nyc article.your article always help to grow our knowledge about market.
suresh ji i invested 03 mutul funds through sip from lst 3yrs. can you guide me its better to keep investing in these three funds or you may suggest best mutulfund i can start one more-
funds are :hdfc balanced fund,icici prudential focused bluchip equityfund,franklin india smaller companies fund growth .
please suggest .
one more thing sir ,i think you have given wrong example in this article like 5000 per month for 5 years and written 60000/ amount.
regards
shekhar
Hello Sir, Just wanted to know in what parameter Motilal Oswal MOSt focussed Multicap 35 missed to enter in the list?
This is for my knowledge.
Hi sir,
Happy New year…I want to know or nw i wish to invest in MF directly, with out any agents or mediater…b'cz our profit is reduced to share MF agents…thats by i want to how to i invest my hard earn money in MF direct..Please reply me…
Thanks and regards,
NITIN DEY