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A Complete Guide to Multi Cap Funds3 min read

March 28, 2022
A Complete Guide to Multi Cap Funds


A Complete Guide to Multi Cap Funds3 min read

India is becoming the new home for the most successful startups. In 2021 alone, 40+ Indian startups joined the unicorn club.

The traditional investment philosophy encourages you to start your investment journey by picking a Blue Chip fund or an Index fund that invests only in the Top 150 well-established companies carrying the lowest risk and providing a moderate rate of return.

The whole start-up revolution of India and the number of Unicorns emerging from the country have shown us the importance of including emerging companies in our portfolio. Not only do they provide the benefits of diversification but also have higher growth potential than Large-cap companies.

The best way to do this is a Multi Cap fund that provides a reasonable rate of return by investing a minimum of 25% each in all 3 market caps: Large, Mid, and Small.

To understand this in the best way possible, we held a Video discussion with our investment experts:

Ms. Swati Kumari (Personal Finance Coach decoding complex investment topics for millions through her YouTube channel – B Wealthy) and

Mr. Shreyash Devalkar (16+ years of experience in Capital markets and Senior Equity Fund Manager for Axis AMC).

Mr. Shreyash Devalkar uses the example of Axis Multi Cap Fund to demonstrate what a Multi Cap fund is:


A Multi Cap fund gives you exposure to both well-established and growing companies.

The fund allocation is as follows:

Large-cap: 25%

Midcap: 25%

Small-cap: 25%

Dynamic: 25%


The fund is suitable for investors seeking long-term wealth creation and those who have a high-risk appetite. Investors should consider this fund for the following advantages:

  1. It provides the stability of Large Cap and the high growth potential of Mid and Small Cap companies.
  2. The fund gives investors an opportunity to capture budding companies.
  3. It gives balanced allocation in all segments.
  4. It also captures the lifecycle of companies.

Which Multi Cap Fund should you invest in?

The best option shortlisted by our experts is the Axis Multi Cap Fund with fund managers who have 12+ years of experience and expertise in the fund management and equity market. You can start investing in a lump sum or SIP.

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