Go by firm's equity track performance when selecting multi-cap fund

These funds can capture growth across market caps; and even if one segment underperforms, damage to them is limited

At a time when the Nifty and the Sensex are scaling new peaks, two fund houses—Canara Robeco and Mirae—have announced the new fund offers (NFOs) of their multi-cap funds. These funds have delivered a robust category average return of 26.7 per cent over the past year, surpassing the performance of flexi-cap funds, which have yielded 22.7 per cent.

Different from flexi-cap funds

Multi-cap funds, like flexi-cap funds, can invest in stocks across all market caps. However, their fund managers are obliged to assign a minimum of 25 per cent each to large-, mid-, and small-cap stocks. Investors in these funds