Multi-cap and Flexi cap are two different strategies in Mutual Funds. Both strategies have large cap, Mid cap, and small-cap and allocation. In Flexi cap allocation charges are as per situation or economic activity. Fund managers can increase or decrease allocation as per their views on the market. So, there’s a lot of flexibility. But it can create bias. Predicting the performance of the Market cap is very difficult. In Multi-cap funds, there’s Fixed allocation large cap – 50%, Mid cap – 25%, and small cap 25%.
Currently, we are suggesting a DSP Multicap Fund for SIP. It will give you two benefits.
- In Down Market (Bear Market) you can accumulate more units.
- In the upmarket (Bull Market) NAV goes up.
It's a win-win situation for you. If you stay invested for 10 years plus. Indian markets are likely to be volatile for the next few years. If you start SIP now and stay the course, then the results will be amazing.
Why DSP Multicap Fund?
Balanced Dynamic Allocation across caps (25% Large, 25% Mid-cap & 25% Small Cap & Remaining 25% in any Cap as per valuation attractiveness)
Better exposure to mid & small caps: 50% in a Multicap Fund v/s Just 25% in the Nifty 500 Index.
Timely rebalancing: Multicap cuts down the exposure of ‘in-favour’ segments and exposure to ‘out of favor’ segments.
Despite investing in the same set of stocks, the Multicap strategy has outperformed the Nifty 500, almost 8 out of 10 times.
Start your New Year with SIP in DSP Multi Cap Fund.”
Blog by Mr. Santosh G Akerkar for Investor awareness and Educational Purpose.
