Nippon India Multi Cap Fund Direct Growth

Nippon India Multi Cap Fund, launched on March 28, 2005, is a multi-cap mutual fund that invests at least 25% of its assets in large-cap, mid-cap, and small-cap stocks. The remaining 25% is allocated to debt and money market instruments to ensure diversification and maintain liquidity. SEBI classifies stocks by their market capitalization, with large-cap stocks being the top 100, mid-cap stocks ranked 101st to 250th, and small-cap stocks falling beyond 250th.

In addition to investing across multiple market caps, the Nippon India Multi Cap Fund also diversifies its portfolio by investing in various themes and sectors, providing investors with broad exposure. The fund is managed by Sailesh Raj Bhan, who brings over two decades of experience in portfolio management. Currently, the fund maintains a strong focus on sectors such as Financials, Energy, Capital Goods, and Automobiles.

Investment Strategy

The fund manager believes in an opportunistic investment with risk optimization. This includes actively looking for alpha-generating stock rather than following short-term momentum. Their fund’s portfolio is further built on a GARP (Growth at a reasonable price) strategy. Where businesses with strong fundamentals and good valuations are picked.

Taxation On Nippon India Multi Cap Direct Growth Fund

Tax treatment on your mutual funds depends on how long you have held the fund. All equity mutual funds sold within 12 months are considered Short-term Capital Gain (STCG), and investments sold after 12 months are considered Long-term Capital Gain (LTCG). The taxes are as follows:

• Long-term Capital Gain: Exemption of up to ₹1,25,000 and then 12.5%
• Short-term Capital Gain: 20% 

Who Should Invest In Nippon India Multi Cap Direct Growth?

Since Nippon India Multi Cap Fund has a diversified portfolio in all three market capitalization, it is ideal for investors who:

-Have a long-term investment horizon

-Have a moderate to high risk appetite

-Want to participate in India’s growth story.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 25.2% small-cap stocks, 44.84% large-cap stocks, and 26.54% mid-cap stocks.

With an AUM of ₹40261.0 crores, Nippon India Multi Cap Fund Direct Growth generated a return of 10.2% in 1 year, 28.0% in 3 years, 34.5% in 5 years. while its benchmark index (Nifty 500) generated 9.0% in 1 year, 18.4% in 3 years, and 23.9% in 5 years.