As markets are volatile, investing in multi-cap funds can help mitigate risks and position the portfolio for higher long-term returns. A multi-cap strategy ensures that investors are not overly concentrated in any single segment.
The average one-year returns of the top 15 funds in the past one year is 34%. While Axis Multicap Fund has given returns of 40% in one year, returns of LICMF Multicap Fund and Baroda BNP Paribas Mutual Fund were at 38%. Over a three-year period,Nippon India Multi-cap fund has yielded 27%, followed by Kotak Multicap at 26%.
