Why Multi-Cap funds could be the smartest diversification bet right now? All you need to know about them

An explainer on Multi-Cap mutual funds, which are mandated by SEBI to maintain a minimum 25 percent allocation each in large-cap, mid-cap and small-cap stocks, offering built-in diversification in a single scheme. Data from mutualfundindia.com shows three-year annualised returns across the category range from 13.8 percent to 17.8 percent, with leading funds delivering 17-19 percent and outperforming the NIFTY 500 Multicap 50:25:25 TRI benchmark return of 15.19 percent.