A multi-cap scheme would be a good choice for investors who are not singularly focused on having a concentrated portfolio. A key advantage of investing in a multi-cap scheme is that the fund takes into account most growth stories that play out across sectors and companies of all sizes. After an encouraging third quarter numbers of FY18, it would be interesting to see how growth stories emerge in companies across market capitalisation. Therefore, by investing in multi-cap schemes, investors can improve the chances of getting the best of companies of all sizes. Among multi-cap schemes, SBI Magnum Multicap Fund has distinguished itself by performing consistently during most market cycles. The scheme invests 50-90% in large-cap stocks, 10-40% in mid-cap stocks and up to 10% in small-cap stocks. This diversification has worked well for the scheme. In the past three-year and five-year periods, it has delivered 12% and 20% returns, while its benchmark, S&P BSE500, has given 7% and 14% returns during the same period. In the past six months, the scheme’s fund manager Anup Upadhyay has invested in various themes, which could work well in the long term. His top picks include segment leader Ultratech Cement to NBFC giant Bajaj Finance.
