3. Fund Manager Expertise: Multi-cap funds rely heavily on the manager's discretion for asset allocation, so a good management team with a strong track record of performance should be one's choice for a multi-cap fund.

Conclusion

Multi-cap funds are among the best bets for such investors who need a decently balanced investment in stocks of all sizes. That is, through these mutual funds, there is some fairly balanced mixture of both growth and stability, resulting from diversification across huge, mid-size, as well as smaller-cap businesses. Investors wishing to settle for a single investment meant to provide safety along with potential avenues for higher returns should therefore consider them. If bit of research into these mutual funds goes along with creating a long-term view in mind, these can come out to be very meaningful components of a diversified portfolio.