What are multi-cap funds, and how do they differ from other equity funds?
Multi-cap funds are a type of equity mutual fund that invests in stocks of companies across different market capitalizations. Hence, they include (stocks of large-cap, mid-cap, as well as small-cap companies. Such funds do not focus on a specific range of market cap. Multi-cap funds offer diversification across company sizes and sectors. This approach can potentially balance risk and returns. This makes multi-cap funds potentially suitable for investors seeking broad market exposure.