HDFC Multi Cap Fund (NFO Review)

HDFC mutual fund is one of the largest mutual fund houses in India with Rs 4.4 lakh crore in assets under management. HDFC mutual fund is launching its new fund HDFC Multi Cap funds. This new fund offer is opening on 23 Nov 2021 and will close on 7 Dec 2021. This is an open-ended equity scheme that will invest across large-cap, mid-cap, and small-cap stocks. Benchmark index- Nifty 500 MULTI CAP 50:25:25 (TRI). If the investor redeems units within one year, then the investor has to pay a 1% exit load, or if units are redeemed after one year from the date of allotment no exit load will be applicable.

What is a Multi Cap fund?

Multi cap fund is in the category of mutual fund which invests in all the market cap stocks. As per the new rules of SEBI, multi-cap funds can invest a minimum of 25% in large-cap stocks, 25% in mid-cap stocks, 25% in small-cap stocks, and the fund manager has the flexibility to allocate 25% of the total fund across the market segments including debt and money market segments.