1. While it is factually true that midcap and smallcap funds have given higher returns over 10+ years, making them obvious investment choices for an aggressive investor, opting for 1 or 2 top-rated multicap funds which have given best returns in the long-term duration would be a better choice.
2. 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.
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 like investing on the fund manager's capabilities and his track record.
5. While aggressive investors may feel that they can build a better portfolio on their own with midcaps, smallcaps and sectoral funds, multi-cap funds make an equally excellent investment option with lesser risk.
2. 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.
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 like investing on the fund manager's capabilities and his track record.
5. While aggressive investors may feel that they can build a better portfolio on their own with midcaps, smallcaps and sectoral funds, multi-cap funds make an equally excellent investment option with lesser risk.