Have you ever come across fund names like XYZ Multi Cap Fund while looking for information on mutual funds and wondered how these are different from the more popular large-cap funds? As the name suggests, a Multicap fund invests across large, mid, and small cap companies thus offering diversification across market caps in its portfolios.
As per SEBI’s product categorization circular issued in Oct 2017 that came into effect in June 2018, equity funds can be classified into large caps, mid caps, and small caps based on the kind of stocks they hold in their portfolio. There are many publicly listed companies on various exchanges in India. Large cap refers to the top 100 publicly listed companies in India by full market capitalization (market capitalization = no.
Read more
