In the last post, we saw how Multicap funds are best suited for someone who wants to diversify within equity. Multicap funds are diversified mutual funds which can invest in stocks across market capitalization. That is, their portfolio comprises of large cap, midcap and small cap stocks. They are relatively less risky compared to a pure mid cap or a small cap fund and are suitable for not-so-aggressive investors.
To be honest, there is nothing called Best Funds, have put that has heading because i see lot of people asking which are best funds now and even some of the DIY platforms have recommendation saying best funds and top performing funds. More often than not the top 5 or top 10 don’t repeat every year! The top funds if we look at yearly performance keep on changing; it doesn’t mean that you need to change your investment every year.
Below are some of the Recommended funds of , these funds are chosen based on some Qualitative Factors like, portfolio quality, churn ratio, Fund Manager’s experience, process etc and Quantitative Factors like Past Performance, Rolling Returns, TER, Capture Ratio etc.
The below funds won’t be in the top 3 or 5, but the idea is to ensure that we stay in the top quartile (top 25%) at all times. These funds deliver consistent returns over a long period of time ensuring that the Fund Basket is at top 25% of performance.
Spread your investment over 2–3 (maybe more) funds, so that you also diversify.
Snapshot of Recommended Funds
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>Better returns than peers with very limited participation on the downside > FM Mr. Shreyash |
Avenue Supermart Kotak Bank ICICI Bank HDFC Bank Bajaj Finance |
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>One of the oldest fund with attractive since inception returns. TER is slightly on the higher side. >FM Atul Bhole. |
HDFC Bank Bajaj Finance ICICI Bank Kotak Mah Bank Bharti Aritel |
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>Conservative fund with excellent performance. Fund has exposure in Foreign stocks, with Alphabet & Amazon in top 5.
>FM Rajiv Thakker |
Alphabet Amazon HDFC Bank Bajaj Holdings |
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> Oldest fund with different holdings. Average returns with moderate risk. More PSU stocks.
>FM Sankaran Naren & Atul Patel. |
Bharti Airtel NTPC ICICI Bank Infosys HDFC Bank |
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>Highest AUM amongst Multicap funds with attractive returns. Fund mirrors benchmark in performance.
>FM Harsh Upadhyaya. |
Reliance ICICI Bank HDFC Bank Ultratech Cement L&T |
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Performance Snapshot of Recommended Funds
| Fund Name | 3 Mth Ret (%) | 6 Mth Ret (%) | 1 Yr Ret (%) | 3 Yr Ret (%) | 5 Yr Ret (%) | 10 Yr Ret (%) |
| Axis Multicap Fund | -16.65 | -13.77 | -6.22 | ———- | ——– | ——– |
| DSP Equity Fund | -22.90 | -18.30 | -12.67 | 0.47 | 4.75 | 8.44 |
| ICICI Prudential Multicap Fund | -28.41 | -22.70 | -25.54 | -4.96 | 2.40 | 7.61 |
| Kotak Standard Multicap Fund | -26.13 | -20.39 | -19.50 | -1.35 | 5.25 | 10.18 |
| Parag Parikh Long Term Equity | -16.45 | -11.51 | -9.54 | 5.37 | 6.89 | ——– |
Market Cap Exposure of Recommended Funds
| Fund Market cap exposure in % | Large cap | Mid cap | Small cap |
| Axis Multicap Fund | 96 | 3.5 | 0.02 |
| DSP Equity Fund | 69 | 24 | 6 |
| ICICI Prudential Multicap Fund | 70 | 19 | 10 |
| Kotak Standard Multicap Fund | 70 | 27 | 1 |
| Parag Parikh Long Term Equity Fund | 48 | 38 | 13 |
Capture Ratio of Recommended Funds
Upward capture ratio measures the fund manager’s performance in upmarket relative to the Index. a value over 100 indicated the fund has moved more than the Index.
Downward capture ratio measures the FMs performance in the down market, value less than 100 indicates that the fund has fallen less than the index.
| Fund Name | Upward | Downward |
| Axis Multicap Fund | Fund Age < 3 years | |
| DSP Equity Fund | 103 | 90 |
| ICICI Prudential Multicap Fund | 77 | 98 |
| Kotak Standard Multicap Fund | 95 | 91 |
| Parag Parikh Long Term Equity Fund | 68 | 50 |
| Category | 91 | 95 |
Happy Investing!
RaVi
Disclaimer: The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. Views expressed cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice.
Past performance may may not happen in the future. Data as of 25th April 2020. Portfolio as of 31st March 2020.
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