Multi-cap funds hog limelight in volatile market

Mumbai: The equity market in India is witnessing highest-ever volatility. Past trends in the capital market also have proven that equities as one of most preferred asset class to beat the inflation and also outperforming various asset classes. Among the equity mutual funds (MFs), multi-cap fund category is one of the best performing categories when compared with the other funds category.

Mahindra Manulife Multi Cap Badhat Yojana performance is one of the best among the peers, in both short-term and long-term time horizon. "The fund in last one year has been able to reallocate some of the sectorial position in line with the evolving macro-economic scenario both in Indian as well as globally. Identification of selected bottoms up equity stocks with attractive valuation helped the fund to perform better in the most volatile market supported by broad-based rally," says Pankaj Jain, Partner, Money's Worth Finserv.

For instance, the fund has delivered 80 per cent returns in last one year and 21 per cent CAGR in two years and 15 per cent CAGR for last three years. The scheme has witnessed one of the most volatile period and able to outperform by its robust and growth oriented investment. Seeing the volatility, the question on everyone's minds is: Is this a good time to invest, or is worse yet to come? If you believe that markets will fall further, you could stay in cash.

However, timing the market is difficult. Investor should keep an eye and focused on their financial goals which are more important and it's always advisable to avoid timing the market as there's no telling how it might behave tomorrow, or the day after. Invest through SIP: In Short-term vs long-term. When will the markets rise or fall, is anybody's guess. This, however, one should not change your financial goals. So, how do you invest in the market, ride the volatility and still reach your financial goals? One of the ways to invest is also through systematic investment plans (SIP).