1. Nearly all Multi-cap funds exhibit a large-cap bias, to be on safer side of liquidity concerns, and probably due to restricted information on mid-cap and small-cap stocks.
2. Although they could have been more aggressive, however their superior long-term returns prove that they are an excellent investment if fund portfolio is not a huge one.
3. This is because they are able to outperform benchmarks in both bear and bull phases, and in all kinds of environments and market sentiments, due to their freedom to invest in stocks of any market capitalization without being shackled by any particular investing style.
4. Multicap funds can also benefit from both value and growth investing as fund manager can pick from a much larger population of stocks, and on whom we should repose faith and leave this high expertise job.
5. Therefore, the best way to select multi-cap funds would be from top 4/5-star rated funds from this category, preferring those with high 5/10-year returns, so that you don't need to "churn" them during your 10-year+ investment horizon.
2. Although they could have been more aggressive, however their superior long-term returns prove that they are an excellent investment if fund portfolio is not a huge one.
3. This is because they are able to outperform benchmarks in both bear and bull phases, and in all kinds of environments and market sentiments, due to their freedom to invest in stocks of any market capitalization without being shackled by any particular investing style.
4. Multicap funds can also benefit from both value and growth investing as fund manager can pick from a much larger population of stocks, and on whom we should repose faith and leave this high expertise job.
5. Therefore, the best way to select multi-cap funds would be from top 4/5-star rated funds from this category, preferring those with high 5/10-year returns, so that you don't need to "churn" them during your 10-year+ investment horizon.