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Monday, December 6, 2021

HDFC Multi Cap NFO: HDFC AMC has launched Multicap Fund NFO, know how beneficial it is for investment

NFO launch of HDFC Multicap Fund.

HDFC Asset Management Company has launched the NFO of HDFC Multi Cap Fund. This NFO is currently open. It will close on 7th December 2021. According to the fund, the objective is to provide an opportunity to investors to diversify with disciplined exposure in large cap, mid cap and small cap segments. Under the scheme, 25-25 per cent allocation is required in large, mid and small caps. The remaining 25% will be invested according to the market view of the fund manager.

Why is diversification necessary?

If we look at the figures for the financial year 2006-2021, then the large caps were the top performers for 6 years. Whereas mid cap remained the top performer for 3 years and small cap for 7 years. One thing is clear from this that diversification in all market caps gives good returns. However, it is not easy for the investors in which way to invest money in them. In such a situation, investing in multi cap funds is easy for them.

Why choose a multicap fund

For investors who want to diversify their investments, multicap funds provide this facility at one place. In this, stability of large cap, growth of mid cap and potential of small cap are harnessed in one place. The objective of investing in multi cap funds is to give investors the benefit of diversification.

fund strategy

According to HDFC Multi Cap Fund, it will use a mix of top down and bottom up strategy in the selection of stocks. According to this strategy, this scheme will invest 60 to 75 percent of its total assets in large and mid cap stocks. At the same time, 25 to 40 percent investment will be in small cap.

What is the fund useful for?

The scheme will cover a wide range of sectors across all market capitalisations. Hence, it is suitable for investors looking to invest in diversified equity funds. This proves to be a better scheme for investors aiming for mid to long term investment. For investors who want to invest in large, mid and small caps of mutual funds in a disciplined manner, this can prove to be a better fund for them.

(Article: Sunil Dhawan)

(The article is based on the information provided by the fund house. Investment in the market is subject to risk. Please consult your financial advisor before investing.)

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