Multicap funds continue to attract mutual fund investors. According to the Association of Mutual Funds in India (Amfi), these funds saw inflows of Rs 7,084 crore in July 2024, the highest among diversified equity schemes. Traditionally, the mutual fund industry has offered actively managed multi-cap schemes.
However, recent days have seen a surge in passive fund offerings within this category, including Navi Nifty 500 Multicap 50:25:25 Index Fund, HDFC Nifty 500 Multicap 50:25:25 Index Fund, and Mirae Asset Nifty 500 Multicap 50:25:25 Exchange-Traded Fund (ETF). “With the markets scaling fresh highs in July 2024, passive multi-cap funds can be a good choice for investors since they provide a well-distributed exposure to large, mid, and small companies. They have a moderate risk-return profile and are less risky than pure midcap and smallcap funds,” says Siddharth Srivastava, head – ETF product and fund manager, Mirae Asset Investment Managers (India).
