1. Long-term wealth creation happens when the fund management process has flexibility, which a good multi-cap fund amply allows through its in-built mandate.
2. Though a few funds do indicate their allocation to large, mid and small cap stocks, mostly they are indistinguishable from a regular diversified fund.
3. A multi-cap fund is also able to cushion itself better by realigning its portfolio rapidly to benefit from the changing market mood, or to bear redemption pressure as it is likely to be more liquid.
4. As a multi-cap fund can pick from a much larger population of stocks, its fund manager's deft ability to select stocks is crucial to its success, and investing in it is akin to investing on the fund manager's capabilities and his track record.
5. While investors with a large corpus at their disposal may feel that they can build a better portfolio on their own, multi-cap funds make an excellent investment option for investors with a smaller allocation.
2. Though a few funds do indicate their allocation to large, mid and small cap stocks, mostly they are indistinguishable from a regular diversified fund.
3. A multi-cap fund is also able to cushion itself better by realigning its portfolio rapidly to benefit from the changing market mood, or to bear redemption pressure as it is likely to be more liquid.
4. As a multi-cap fund can pick from a much larger population of stocks, its fund manager's deft ability to select stocks is crucial to its success, and investing in it is akin to investing on the fund manager's capabilities and his track record.
5. While investors with a large corpus at their disposal may feel that they can build a better portfolio on their own, multi-cap funds make an excellent investment option for investors with a smaller allocation.