8.27Multi-cap funds
1What is it?
Multi-cap funds must invest at least 25% each in large, mid and small caps (75% in total), with the rest flexible.
2Why does it exist?
A built-in mix, with more mid and small cap exposure than many flexi-caps.
3Diagram
| Invests in | Suits | Risk | Suggested horizon |
|---|---|---|---|
| ≥25% each in large, mid, small | Higher risk appetite | High | 7+ years |
4Quick revision
- Multi-cap funds must invest at least 25% each in large, mid and small caps (75% in total), with the rest flexible.
- Risk: High.
- Horizon: 7+ years.
5Knowledge check
Q1. Minimum in each cap?Show answer
25%.
Q2. Riskier than a large-cap fund?Show answer
Yes, due to mandatory mid/small exposure.
Q3. Multi vs flexi?Show answer
Multi has fixed minimums; flexi doesn’t.
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