Based on our analysis over the past 15 calendar years, we have observed that large cap index has outperformed mid and small cap index in 4 years, mid cap index has outperformed large and small cap index in 4 years and small cap index has outperformed large and mid-cap index in 7 years. Multi cap funds tend to do the same by taking exposure across market cap i.e. large, mid and small cap stocks based on fund manager’s outlook and valuations. One of the oldest fund in the multi cap category is HDFC Equity Fund which was launched 25 years ago on 1st January 1995. The Fund, being a multi cap fund has predominant exposure to large caps stocks and dynamic yet controlled exposure to mid/small caps.

Source: Economic Times January 24, 2020 12:45 UTC