Multicap Funds for Beginners

Many new investors have now started taking charge of their financial future and the well being of their families. Some of them have just started investing or have gained a short term experience w.r.t investing. The goal for majority of them is potential long-term capital appreciation.

Beginners can potentially consider multicap funds as a multicap fund invests at least 25% of its total capital in small cap, mid cap, and large cap stocks each and at least 75% of the total capital is invested in equities.

A few points which can be considered while choosing multicap funds.

Inflation
One of the main reason why investing has become essential in the current scenario is because of inflation.

It can reduce savings in the long run and this happens because inflation makes goods and services costly over time. This leads to the availability of fewer goods and services for the exact same amount in the future when compared to the present.

Investing in equity stocks can be one of the ways an investor can potentially preserve and aim for capital appreciation over time as it has the potential to match or at times even outpace inflation.

New Investors
Investing may end up being a confusing subject matter and it can also be overwhelming at the same time for someone who is just starting. Many beginner investors are young and for such investors, it can be potentially beneficial to invest in a diverse group of equity stocks.

A multicap fund invests in all three types of equity stocks according to the size of the company. It invests in small cap, mid cap, and large cap stocks and it also provides a guarantee that at least 25% of the corpus will be invested in each market segment.

This way, someone who has just started to invest can gain exposure to a diverse basket of equity stocks of different sizes and across many sectors in a single fund.

Minimum Time
Time and money may end up being a hurdle when investing. A multicap fund can be an easy choice for beginners as they do not have to pick and choose equity stocks on their own. The fund will easily give them exposure to different sectors and capitalizations in a single basket saving them time and effort.

Concluding
Multicap fund can be a Socha Samjha Nivesh for the investors who are just beginning their investment journey. It will provide exposure to a variety of companies from different sectors and also of different market capitalization, thus helping in spreading out any potential risk and aiming for long-term capital appreciation.
To learn more about the multicap fund, download the Axis MF investment app.

Large Cap:1st-100th company in terms of full market capitalization.
Mid Cap:101st-250th company in terms of full market capitalization.
Small Cap:251st company onwards in terms of full market capitalization

This is an investor education and awareness initiative by Axis Mutual Fund.

Investors have to complete one-time KYC process. Visit https://web-cug.axismf.com or contact us on customerservice@axismf.com for more information.
Investors should deal only with Registered MFs, details of which are available on www.sebi.gov.in – Intermediaries/ Market Infrastructure Institutions section.
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Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.