InvestorQ : Is it possible for multi cap funds to beat the general indices on a consistent basis?
sara Kunju made post

Is it possible for multi cap funds to beat the general indices on a consistent basis?

Answer
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9 months ago


There is no hard and fast rule when it comes to multi cap funds because here also half of the funds seem to outperform. The multi cap funds are slightly different from large cap funds because they also invest in mid caps and small caps to give alpha to their portfolios. That is makes them unique in a number of ways. The number of funds outperforming may be the same but funds that have smartly used the small and mid cap universe have managed to give a better return compared to others.

Scheme

Name

NAV

Regular

NAV

Direct

Return 1 Year (%)

Regular

Return 1 Year (%)

Direct

Return 1 Year (%)

Benchmark

Outperformance

in (%) terms

Axis Multicap Fund

12.85

13.29

19.09

20.93

10.49

8.60

DSP Equity

48.10

44.97

18.87

19.85

10.49

8.38

JM Multicap Fund

35.16

37.80

18.35

19.28

10.55

7.80

Parag Parikh Long Term Equity Fund

26.85

27.88

15.66

16.58

10.49

5.17

Mahindra Mutual Fund Badhat Yojana

11.80

12.50

15.50

17.41

10.49

5.01

LIC MF Multicap Fund

51.01

53.45

15.19

15.82

10.49

4.69

Essel Multi Cap Fund

11.28

11.65

14.73

17.18

10.49

4.23

BNP Paribas Multi Cap Fund

50.44

55.84

14.38

15.99

10.49

3.89

Canara Robeco Equity Diversified

142.01

148.50

13.73

14.85

10.55

3.17

UTI Equity

152.17

156.64

13.32

13.90

10.49

2.83

Union Multi Cap Fund

20.80

21.87

13.17

13.79

10.55

2.61

Kotak Standard Multicap Fund

37.55

40.20

13.68

14.78

11.63

2.06

SBI Magnum MultiCap

51.10

54.30

12.32

13.32

10.55

1.77

Tata Multicap Fund

11.28

11.57

11.76

14.07

10.55

1.21

PGIM India Diversified Equity Fund

13.91

14.84

11.64

13.72

10.49

1.15

Aditya Birla Sun Life Equity

765.39

816.49

10.26

11.27

9.63

0.63

Baroda Multi Cap Fund

100.94

107.45

10.80

11.67

10.55

0.25

Edelweiss Multi Cap Fund

15.16

15.98

10.33

12.32

10.49

-0.16

IDFC Multi Cap Fund

96.57

101.51

9.40

10.13

10.55

-1.15

Motilal Oswal Multicap 35 Fund

27.23

28.74

9.24

10.18

10.49

-1.26

HDFC Equity

674.80

712.16

8.43

9.05

10.49

-2.06

HSBC Multi Cap Equity Fund

88.05

92.97

8.42

9.52

10.49

-2.07

Shriram Multicap Fund

10.87

11.12

7.92

9.97

10.49

-2.57

ICICI Prudential Multicap Fund

299.28

318.09

7.23

8.26

10.55

-3.32

IDBI Diversified Equity Fund

22.16

23.89

7.21

8.94

10.55

-3.34

Invesco India Multicap Fund

48.49

53.65

5.62

7.13

9.63

-4.01

L&T Equity

83.90

88.05

6.29

7.07

10.55

-4.26

Quant Active Fund

186.65

189.29

5.88

6.25

10.49

-4.61

Taurus Starshare (Multi Cap) Fund

113.00

117.13

5.79

5.89

10.55

-4.77

Principal Multi Cap Growth Fund

144.53

152.24

5.64

6.61

10.49

-4.86

Franklin India Equity Fund

590.86

630.71

4.24

5.13

10.49

-6.25

Nippon India Multi Cap Fund

97.95

103.17

3.45

4.11

10.55

-7.10

As seen in the above table there are fund that have outperformed and underperformed based on their call on alpha. The range is huge and that makes this type of funds quite risky. That is what you need to keep in mind.