Multi-Cap Funds
Also known as: Diversified Equity Funds, Flexi Cap Funds
Equity mutual funds that invest across large-cap, mid-cap, and small-cap stocks without strict allocation limits.
Detailed Explanation
Multi-Cap Funds have the flexibility to invest across market capitalizations based on opportunities and fund manager's strategy. SEBI mandates minimum 25% each in large-cap, mid-cap, and small-cap stocks. This provides diversification across market segments and allows fund managers to adapt to market conditions. They offer balanced exposure to growth and stability across the market cap spectrum.
Related Calculators
Related Terms
Large-cap
Companies with large market capitalization, typically the top 100 companies by market cap in India.
Mid-cap
Companies with medium market capitalization, typically ranked 101-250 by market cap in India.
Small-cap
Companies with small market capitalization, typically ranked 251+ by market cap in India.
Diversification
Investment strategy of spreading money across various assets to reduce overall portfolio risk.