Fund Outlook – SBI Multi-cap Fund<\/strong><\/p>\n\n\n\nThe SBI Multi-cap Fund aims to provide investors with opportunities for long term growth in capital from a diversified portfolio of equity and equity related instruments across market capitalization. The scheme through its bottom-up stock picking strategy seeks to build an optimised high conviction portfolio.<\/p>\n\n\n\n
The scheme follows an unconstrained, sector agnostic approach and has a strong pedigree of investment expertise across market capitalization. The Investable universe is expanding with the inclusion of new age businesses focussing on niche segments with newer technologies. Thus, the scheme will endeavour to cautiously explore newer businesses with promising future potential at reasonable valuations backed by robust fund management.<\/p>\n\n\n\n
The scheme offers investors a one-stop solution with diversification across market cap, unlike holding on to individual stocks. The scheme will be actively managed with certain restrictions to mid and small cap allocations. The fund has mandated allocation towards Large cap, Mid-cap, and Small-cap segments with each at minimum 25%.<\/p>\n\n\n\n
Although the presence of large-cap stocks could offset some of the risk, with half of the assets invested in mid-cap and small-cap companies, the scheme will be prone to higher volatility. The fund manager’s ability to construct the Multi-cap portfolio remains to be seen, and it will influence the performance of this scheme.<\/p>\n\n\n\n
In addition, the looming threat of the Omicron variant and the US federal reserve’s announcement of reduction in stimulus may poses a major risk to economic growth. The margin of safety appears to be narrow, and the clear direction for the equity market from the current elevated levels is unknown. These, among many other factors, may affect the scheme’s performance, and the portfolio may face higher volatility in the near term. This makes multi-cap mutual fund schemes like SBI Multi-cap Fund a risky investment proposition.<\/p>\n\n\n\n
Thus, the scheme is suitable only for investor looking for long term wealth creation, seeking to have an unbiased flavour of market caps. Ensure you have a high-risk appetite; a long investment horizon of at least 5-7 years and that your investment objectives are aligned with the fund.<\/p>\n\n\n\n
This article first appeared on PersonalFN\u00a0here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"In the past few years, market capitalization across large-cap, mid-cap, and small-cap has grown multi-fold. It is a solid indicator that there is an increase in the participation of investors in the equity markets, plus signalling that the investors’ confidence to meet their long-term financial goals through equity investments is high. As you probably know,…<\/p>\n","protected":false},"author":7,"featured_media":4159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4158"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=4158"}],"version-history":[{"count":1,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4158\/revisions"}],"predecessor-version":[{"id":4160,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4158\/revisions\/4160"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/4159"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=4158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=4158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=4158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}