You only need these mutual funds to build your retirement corpus

One mutual fund category for all your goals
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One mutual fund category for all your goals

Most of you know equity mutual funds are ideal to build a retirement corpus. But the trouble is there are so many equity mutual fund categories with varied return potential. To choose one - large cap? Mid cap? Small cap? - is a daunting task for most individuals.

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How about multi cap funds?
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How about multi cap funds?

Multi cap mutual fund category may be able to solve your dilemma. As the name suggests, these schemes have the mandate to invest across categories and sectors based on the view of the fund manager. That means you don't have to waste your time finding the hot market capitalisation and sectors.

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Other funds are constrained by their mandates
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Other funds are constrained by their mandates

Thanks to the recent re-categorisation exercise by Sebi, mutual fund categories may remain true to their label. As per the new mandate, every category should invest around 80 per cent in its investment universe. And the investment universe is clearly defined.

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It is not possible to deviate from mandate
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It is not possible to deviate from mandate

Large cap mutual funds won't be able to invest heavily in mid cap stocks to make extra returns. Similarly, mid cap schemes may not be able to play it safe by investing mostly in large cap stocks. These tactics were used earlier by fund managers to post better performance.

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Enjoy the freedom to go anywhere and earn extra
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Enjoy the freedom to go anywhere and earn extra

As you can see, the new norms clearly offer an edge to multi cap funds. They can switch between market caps and sectors, based on their prospects. For example, they can invest mostly in large cap stocks during a volatile phase or invest in mid cap stocks during a bull phase to earn extra bucks. Similarly, it can invest heavily in a sector, say, IT sector, to cash in on the euphoria surrounding the sector.
Here are the best multi cap mutual funds to invest in 2019

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