Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered Office at 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai - 400025.
Motilal Oswal Asset Management Company Ltd. has been appointed as the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.

5 key characteristics of Multicap portfolios

While investing in equity mutual funds schemes, investors often ask which fund would suit the best to their investment objectives. For last few weeks we have been making posts for general understanding about the different market cap sizes of the companies. Multicap portfolios are the combination of the stocks of different market cap sizes. This week, let’s learn the characteristics of Multicap portfolios.


Benefits of Multi cap Mutual Funds

Multicap portfolios are medium of investments where your equity mutual fund portfolio consists of different market cap stocks in one. Such portfolios allow the freedom to your scheme’s fund manager to pick up the stocks that suit the investment objectives irrespective of their market cap size. That means, your portfolio is less reliable on the market cap size. Multicap funds can be distinctly diversified throughout the market with a wider scope for growth and asset allocation.


5 characteristics of Multicap Portfolios

Since flexibility is all that newbie investors look for, multicap mutual fund schemes are a good choice. Multicap funds offer flexibility for opportunities across the market. Expert fund managers find opportunities of growth across the market and implement the ideas without capital size restrictions. Lately, multicap funds have shown good performance with the positive changes in the economy. Multicap funds are generally considered favorite for the moderate risk taking investors.

Risk Regulator

Multicap funds to regulate risk in mutual funds

In the process of wealth creation in equity, risk is bound inherently. Multicap funds give freedom from the capital sizes restriction. Novice young investors generally prefer multicap funds to invest while learning the markets. The risk in multicap funds is often mitigated in an easier way during the volatile situations. The ups and downs in sectorial or market cap size of a stock do not affect a good multicap fund. They are the risk regulators in your wealth creation journey.


Markets are unstable. The corrections may occur as per the market scenarios and they are highly impactful on your equity mutual fund portfolio. Multicap funds are typically designed to find higher growth opportunities in the rising markets.  Positive economic changes may boost the performance of a good multicap portfolio and may also help reduce the negative impact in the bearish market.


An average investor finds it difficult to choose from largecap or midcap companies in the portfolio. Thus by evaluating and investing in a good mutual fund scheme, they can benefit in different market condition as stock selection decisions are made by expert fund managers. Keep in mind that the risk involved in multicap funds may change as they have a larger universe of stocks to choose from. Comparatively lesser number of stocks in portfolio with a wise diversification makes a good portfolio.

The illustrations are used to explain the concept and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

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Disclaimer:The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. MOAMC shall not be liable for any direct or indirect loss arising from the use of any information contained in this document. Readers shall be fully responsible for any decision taken on the basis of this document. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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