3 Top-Performing Multi-Cap Mutual Funds Over 10 Years

Mutual Funds at Groww
16 Jul 202412:26

Summary

TLDRThis video script discusses the growth of India's economy and its impact on stock market performance, highlighting the outperformance of large-cap, mid-cap, and small-cap market segments since April 2005. It introduces multi-cap funds as a diversified investment approach, showcasing their average performance over 1, 3, 5, and 10 years. The script focuses on the top three performing multi-cap funds over a decade, analyzing their critical ratios like standard deviation, beta, sharpe ratio, portfolio turnover, and expense ratio. It concludes by considering the suitability of multi-cap funds for investors with a higher risk tolerance.

Takeaways

  • 📈 India's economy is one of the fastest-growing in the world, outpacing the US, Europe, and even China in terms of GDP growth.
  • 💹 Indian stock markets, including large-cap, mid-cap, and small-cap segments, have been performing well, as reflected in indices like NIFTY 50.
  • 📊 There is no clear winner among market segments as they have performed differently at various times, indicating the importance of a diversified investment approach.
  • 🌐 Multi-cap funds invest across large-cap, mid-cap, and small-cap companies, providing a balanced investment strategy.
  • 📊 Over 1, 3, 5, and 10 years, multi-cap funds have shown high percentage growth, outperforming benchmarks in the financial sector.
  • 🏆 The top three performing multi-cap funds over the past decade have significantly beaten their benchmarks, according to the data as of July 5th, 2024.
  • 📝 Multi-cap funds must hold at least 75% of their assets in equity and equity-related instruments and at least 25% in large-cap, mid-cap, and small-cap stocks.
  • 🔄 The introduction of 'Flexible Cap' funds by SEBI in 2020 allows funds to invest without restrictions in large-cap, mid-cap, and small-cap stocks, leading to a shift in fund categorization.
  • 📉 The top three multi-cap funds have shown a high standard deviation, indicating higher volatility compared to the category average.
  • 📈 The top-performing funds have a beta close to or higher than 1, suggesting they are as risky or riskier than the market.
  • 📊 Sharpe ratios for these funds indicate that for every unit of risk, they have provided excess returns, with one of the funds showing a Sharpe ratio of 1.82.

Q & A

  • What is the main topic of the video script?

    -The main topic of the video script is about the performance of multi-cap funds in the Indian economy and how they have outperformed their benchmarks over the past decade.

  • What are the three market segments mentioned in the script?

    -The three market segments mentioned are large-cap, mid-cap, and small-cap market segments, represented by NIFTY 100, NIFTY MidCap 150, and NIFTY SmallCap 250 respectively.

  • How have the three market segments performed from April 2005 to March 2024 according to the script?

    -The script indicates that all three market segments—large-cap, mid-cap, and small-cap—have given more than 15% CAGR during this period, but there is no clear winner among them as they have performed well at different times.

  • What is the suggested investment approach to benefit from the growth of the stock market across different market segments?

    -The script suggests investing in multi-cap funds, which allocate assets across large, mid, and small-cap stocks, as a way to benefit from the growth of the stock market.

  • What is the performance of the multi-cap fund category over 1, 3, 5, and 10 years?

    -The script states that the multi-cap fund category has shown the highest percentage growth in the Financial Year 24 among the asset classes.

  • What is the total assets under management (AUM) of multi-cap funds as of the past 10 years?

    -As of the past 10 years, the total AUM of multi-cap funds that have performed well is at 85, as per the script.

  • What are the top three performing multi-cap funds that have beaten their benchmarks over 10 years?

    -The script does not provide the names of the top three performing multi-cap funds directly, but it mentions that it will discuss them in the video.

  • What is the definition of multi-cap funds as per SEBI guidelines?

    -As per SEBI guidelines, multi-cap funds should invest in a minimum of 75 assets, including equity and equity-related instruments, and allocate at least 25% of their assets towards large-cap, mid-cap, and small-cap stocks.

  • What is the difference between multi-cap funds and flexi-cap funds as introduced by SEBI in 2020?

    -Flexi-cap funds, introduced by SEBI in 2020, allow for investments in large, mid, and small-cap stocks without the minimum 25% allocation restriction that multi-cap funds have.

  • What is the total number of multi-cap fund schemes and their total AUM as of June 2024 according to the script?

    -As of June 2024, there are 25 multi-cap fund schemes with a total AUM of 5 trillion.

  • What are some of the critical performance metrics discussed for the multi-cap funds in the script?

    -The script discusses several critical performance metrics including Standard Deviation, Beta, Sharpe Ratio, Portfolio Turnover Ratio, and Expense Ratio for the multi-cap funds.

Outlines

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Mindmap

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Keywords

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Highlights

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Transcripts

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Ähnliche Tags
Multi-cap FundsInvestment StrategiesEconomic GrowthStock MarketAsset AllocationPortfolio ManagementRisk ToleranceFinancial PlanningTop PerformersIndia Economy
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