IDFC Multi Cap Fund is an open-ended equity scheme investing across large, mid, and small-cap stocks. New Fund Offer opens on November 12, 2021, and closes on November 26, 2021
| Good to know What is a multi-cap fund? Multi-cap funds invest in a diversified set of stocks with differing market capitalisations. It is an open-ended equity scheme investing across large-cap, mid-cap and small-cap stocks. |
Investment objective
If you track performances based on market capitalisation over the years, you will find that the type of stocks that do well in a certain period differs each year. No one can predict whether it will be a large-cap, mid-cap or small-cap stocks, therefore it is better to use diversification rather than predictions to meet your goals.
Multi-cap funds aim to benefit from the higher growth potential offered by mid and small caps while reducing volatility through their exposure to large-cap stocks. Timing is less relevant over the long term; for instance, a 5-year SIP in a multi-cap fund has yielded an average return of 12% over the last 11 years.
IDFC Multi-Cap Fund follows what the company calls the 3D process, which includes discipline, diversity and dependability. There is a mandated allocation across large, mid and small caps, each at a minimum of 25%, representing a wide range of sectors. To reduce risk and add stability, allocation in all the 3 market-cap categories is limited, and the portfolio will be rebalanced quarterly to realign within these limits.
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Allocation strategy
| Market capitalisation | Allocation (%) | |
| Minimum | Maximum | |
| Large- cap stocks | 30 | 50 |
| Mid- cap stocks | 25 | 35 |
| Small- cap stocks | 25 | 30 |
Scheme details
| Name | IDFC Multi Cap Fund |
| Type | An open-ended equity scheme investing across large-cap, mid-cap, small-cap stocks |
| Category | Equity and debt |
| Benchmark | NIFTY 500 Multicap 50:25:25 TRI |
| Entry/exit load | Entry: Nil Exit Load: If redeemed/switched out within 1 year from the date of allotment - 1% of applicable NAV; If redeemed/switched out after 1 year from the date of allotment – Nil |
| Fund Manager | Mr Daylynn Pinto (equity portion) Mr Harshal Joshi (debt portion) |
| Minimum application amount | ₹5,000 and in multiples of ₹1 thereafter |
| Expense ratio | Up to 2.25% |
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| This product is suitable for investors who are seeking*: | Riskometer |
| - to spend time in the market rather than timing the market. - long term growth prospects with diversified investment - to benefit from discipline since this fund maintains a sizeable allocation to all market caps across market cycles which restricts any fund manager bias |
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by IDFC Asset Management Company. To read the entire document, click here.
Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.
Mutual fund investments are subject to market risks, read all scheme-related documents carefully.