Multicap mutual fund schemes regain popularity in 2017

After a long time when every mutual fund investor used to own units of a multicap scheme and reason that if a person is holding just one mutual fund scheme, it better be a multicap scheme, multicap mutual fund schemes are getting their due, reports ET.
 
Largecap, midcap and smallcap schemes gained more popularity among investors, but the scenario reversed in 2017 when the mutual fund investors started strongly recommending multicap schemes. 
 
According to the report, many new investors are getting into mutual funds and the reason may be demonetisation. However, many of them have their eyes set on the returns posted by schemes in the past year.
 
These investors have been pestering advisors that they would like to invest in small and midcap schemes for better returns, said the report, adding that many want to play the game safe with largecap mutual fund schemes.
 
The report further says that against this backdrop, many advisors have started asking investors to bet on multicap schemes or diversified equity schemes that invest across stocks in different market capitalisations. They have been educating investors that betting on schemes on the basis of past returns is futile.
 
Since there is no way one can predict accurately the movement of the stock market, there is no point on betting on a scheme that will bet only on a market cap, advisors reportedly say. A better way, they argue, would be to bet on a scheme with the freedom to invest across market capitalisations and sectors.