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Difference between revisions of "Diversified Equity Funds"
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| − | {{Alphabets}} | + | {{Alphabets}} |
| + | ==What is a Multicap Equity Scheme== | ||
| + | A Multicap Equity Mutual Scheme is one which invests its assets across equity and equity-related securities across all market capitalisations. | ||
| + | |||
| + | These type of schemes are good for investors who do not have the expertise or time to track the stock market regularly. | ||
| + | |||
| + | These scheme allow the fund manager to invest the scheme money across different market capitalisations depending on the opportunities available in the market. | ||
==Diversified funds and large AUM== | ==Diversified funds and large AUM== | ||
*Too small AUM is troubling and too huge AUM is troubling as well. | *Too small AUM is troubling and too huge AUM is troubling as well. | ||
*When the scheme is too small, expense ratio / fund management charges will be high | *When the scheme is too small, expense ratio / fund management charges will be high | ||
*Because of its low AUM (and obviously low SIP money coming in), in a down trending market, the fund manager might find opportunities to buy but the scheme might not have cash. | *Because of its low AUM (and obviously low SIP money coming in), in a down trending market, the fund manager might find opportunities to buy but the scheme might not have cash. | ||
| − | *On the other hand, if the scheme AUM is too high, finding | + | *On the other hand, if the scheme AUM is too high, finding opportunities in accordance to the scheme mandate will be difficult. We have seen this problem in the case of DSPBR Microcap Fund because it invests only in smallcap stocks. |
| − | *ICICI Prudential Value Discovery Fund is a multicap fund with AUM of 15588 cr. | + | *[[ICICI Prudential Value Discovery Fund]] is a multicap fund with AUM of 15588 cr. |
| − | *Yes. It has large AUM but I do not think it | + | *Yes. It has large AUM but I do not think it worrisome becuase it has an experienced fund manager who has the freedom to invest across all marketcaps and is not restricted to only one marketcap. |
*ICICIPru Value Disco falls between HDFC Equity Fund has AUM of 16653 Cr and Franklin India Prima Plus Fund with 9930 Cr in this category. These are the top 3 schemes | *ICICIPru Value Disco falls between HDFC Equity Fund has AUM of 16653 Cr and Franklin India Prima Plus Fund with 9930 Cr in this category. These are the top 3 schemes | ||
*So. Yes. Continue your SIPs | *So. Yes. Continue your SIPs | ||
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*If however, you wish to go for multicaps for other reasons, study ICICIPru Value Discovery Fund once. | *If however, you wish to go for multicaps for other reasons, study ICICIPru Value Discovery Fund once. | ||
*Dated: Feb 21, 2017 | *Dated: Feb 21, 2017 | ||
| + | ==Multi cap funds constitute 30% of equity AUM== | ||
| + | Multi cap funds have the highest AUM among equity funds, shows data collated from Value Research Online. We have excluded the AUM of the arbitrage funds category from the AUM of equity funds due to its short-term nature. Multi cap funds invest in stocks based on the market conditions irrespective of their market capitalisation. This gives multi cap funds a flexibility edge over other categories of equity funds such as large, mid and small cap funds as these funds have a more restricted pool of stocks based on market capitalisation. | ||
| + | |||
| + | Value Research shows that multi cap funds have AUM of Rs.1.52 lakh crore as on August 2017. These funds account for 30% of the equity AUM.On the other hand, large cap funds have AUM of 1.36 lakh crore while mid cap funds manage assets of worth Rs.1.26 lakh crore. MF industry adds 8,000 new distributors in eight months The mutual fund industry added 7,846 new distributors in the calendar year 2017. As a result, the number of total individual ARN distributors was at 75,866 as on August 2017, shows AMFI data. The data shows that the total number of mutual fund distributors registered with AMFI including non-individual ARN holders increased by 9684 to 92,565 in 2017. If we include EUIN holders (employees of distribution firms), the total number of distributors goes up to 2.02 lakh, as on August 2017. It went up by 35,533 from 1.67 lakh in December 2016. | ||
| + | |||
| + | Source: Wise Money dated 2 - 5 October 2017 | ||
| + | ==Related Lessons== | ||
| + | *[[Equity Mutual Funds]] | ||
| + | *[[Debt Mutual Funds]] | ||
| + | *[[Balanced Funds]] | ||
| + | *[[Equity Linked Savings Schemes]] (ELSS) | ||
| + | *[[Liquid Mutual Fund Schemes]] | ||
| + | *[[Ultra Short Term Mutual Fund Schemes]] | ||
| + | *[[Short-term Debt Mutual Fund Schemes]] | ||
| + | *[[Capital Protection-Oriented Funds]] | ||
| + | *[[Arbitrage Mutual Fund Schemes]] | ||
| + | *[[Exchange Traded Funds]] | ||
| + | *[[International Mutual Fund Schemes]] | ||
| + | *[[Smallcap Mutual Fund Schemes]] | ||
| + | *[[Thematic Mutual Fund Schemes]] | ||
| + | *[[Dynamic Bond Funds]] | ||
| + | *[[Dynamic Asset Allocation Funds]] | ||
| + | *[[Monthly Income Plans]] | ||
| + | *[[Gilt Mutual Funds]] | ||
| + | [[Category:Mutual Funds]] | ||
| + | {{Alphabets}} | ||
Revision as of 20:36, 30 September 2017
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Contents
What is a Multicap Equity Scheme
A Multicap Equity Mutual Scheme is one which invests its assets across equity and equity-related securities across all market capitalisations.
These type of schemes are good for investors who do not have the expertise or time to track the stock market regularly.
These scheme allow the fund manager to invest the scheme money across different market capitalisations depending on the opportunities available in the market.
Diversified funds and large AUM
- Too small AUM is troubling and too huge AUM is troubling as well.
- When the scheme is too small, expense ratio / fund management charges will be high
- Because of its low AUM (and obviously low SIP money coming in), in a down trending market, the fund manager might find opportunities to buy but the scheme might not have cash.
- On the other hand, if the scheme AUM is too high, finding opportunities in accordance to the scheme mandate will be difficult. We have seen this problem in the case of DSPBR Microcap Fund because it invests only in smallcap stocks.
- ICICI Prudential Value Discovery Fund is a multicap fund with AUM of 15588 cr.
- Yes. It has large AUM but I do not think it worrisome becuase it has an experienced fund manager who has the freedom to invest across all marketcaps and is not restricted to only one marketcap.
- ICICIPru Value Disco falls between HDFC Equity Fund has AUM of 16653 Cr and Franklin India Prima Plus Fund with 9930 Cr in this category. These are the top 3 schemes
- So. Yes. Continue your SIPs
- Dated: Feb 21, 2017
Best multicap for a 5-year period
- A 5-year period is an ample time for even midcaps to perform well. HDFC Midcap Opportunities Fund is a good one in this area.
- If however, you wish to go for multicaps for other reasons, study ICICIPru Value Discovery Fund once.
- Dated: Feb 21, 2017
Multi cap funds constitute 30% of equity AUM
Multi cap funds have the highest AUM among equity funds, shows data collated from Value Research Online. We have excluded the AUM of the arbitrage funds category from the AUM of equity funds due to its short-term nature. Multi cap funds invest in stocks based on the market conditions irrespective of their market capitalisation. This gives multi cap funds a flexibility edge over other categories of equity funds such as large, mid and small cap funds as these funds have a more restricted pool of stocks based on market capitalisation.
Value Research shows that multi cap funds have AUM of Rs.1.52 lakh crore as on August 2017. These funds account for 30% of the equity AUM.On the other hand, large cap funds have AUM of 1.36 lakh crore while mid cap funds manage assets of worth Rs.1.26 lakh crore. MF industry adds 8,000 new distributors in eight months The mutual fund industry added 7,846 new distributors in the calendar year 2017. As a result, the number of total individual ARN distributors was at 75,866 as on August 2017, shows AMFI data. The data shows that the total number of mutual fund distributors registered with AMFI including non-individual ARN holders increased by 9684 to 92,565 in 2017. If we include EUIN holders (employees of distribution firms), the total number of distributors goes up to 2.02 lakh, as on August 2017. It went up by 35,533 from 1.67 lakh in December 2016.
Source: Wise Money dated 2 - 5 October 2017
Related Lessons
- Equity Mutual Funds
- Debt Mutual Funds
- Balanced Funds
- Equity Linked Savings Schemes (ELSS)
- Liquid Mutual Fund Schemes
- Ultra Short Term Mutual Fund Schemes
- Short-term Debt Mutual Fund Schemes
- Capital Protection-Oriented Funds
- Arbitrage Mutual Fund Schemes
- Exchange Traded Funds
- International Mutual Fund Schemes
- Smallcap Mutual Fund Schemes
- Thematic Mutual Fund Schemes
- Dynamic Bond Funds
- Dynamic Asset Allocation Funds
- Monthly Income Plans
- Gilt Mutual Funds
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