Multicap funds: Rs 10,000 monthly SIP in this scheme has given Rs 1.58 crore in 21 years. Here's a close view

Baroda BNP Paribas Multicap Fund, launched in 2003, recently celebrated its 21st year in the market and surpassed Rs 2,500 crore in assets under management (AUM) last month. This open-ended equity scheme diversifies its investments across large-cap, mid-cap, and small-cap stocks. Over the past year, the fund has yielded a return of 47.22%, outperforming its benchmark (Nifty 500 Multicap 50:25:25 - TRI) which stood at 41.01%. Similarly, the scheme has delivered a return of 20.99% over the last three years, slightly below the benchmark's return of 21.04%.

The Baroda BNP Paribas Multicap Fund has proven to be an attractive option for investors looking for solid returns since its establishment. For example, an investor who consistently invested Rs 10,000 per month through a systematic investment plan (SIP) from the fund's inception would now see their investment exceed Rs 1.58 crore. With a Sharpe ratio of 1.11, the fund demonstrates its ability to provide strong risk-adjusted returns. Furthermore, its beta of less than one indicates that these returns were achieved with minimal downside risk.

The Baroda BNP Paribas Multicap Fund utilises the multi-cap index universe, granting fund managers the flexibility to allocate investments across a diverse array of sectors, such as Media, Textiles, and Forest Materials, which are typically not included in large-cap indices. This comprehensive diversification strategy allows the fund to access distinctive growth potential and effectively manage risks throughout different economic phases, as stated in the provided information.

The investment scheme is compared to the Nifty 500 Multicap 50:25:25 TRI index. This particular scheme is overseen by fund managers Sanjay Chawla and Sandeep Jain.

For lumpsum investments, the minimum required amount is Rs 5,000, with subsequent investments in multiples of Re 1. When opting for daily, weekly, or monthly Systematic Investment Plans (SIPs), the minimum investment amount is set at Rs 500, with further investments in multiples of Re 1. If selecting Quarterly SIPs, the minimum amount required is Rs 1,500, and subsequent investments are in multiples of Re 1.

Fund at a glance

Baroda BNP Paribas Multi Cap Fund Direct-Growth has demonstrated impressive performance metrics. Over the last 1-year period, the fund has yielded returns of 47.22%. Since its inception, it has maintained an average annual return of 18.08%. Notably, the fund has a track record of doubling the invested capital every 3 years.

The scheme, which aims to maintain a diversified portfolio of 40-60 stocks, is ideal for investors seeking growth with diversification, first-time investors looking for exposure across market caps through a single fund, and those wishing to participate in India’s growth story. 

The scheme's consistent delivery of returns aligns well with industry norms for funds within its category. While its performance in mitigating losses during market downturns is considered average, the fund's prudent investment strategy has instilled confidence among investors.

Sector allocation

Within its portfolio, Baroda BNP Paribas Multi Cap Fund Direct-Growth predominantly allocates funds towards various sectors including Financial, Capital Goods, Services, Healthcare, and Energy. In comparison to its counterparts, the fund has opted for a slightly reduced exposure to Financial and Capital Goods sectors.

Diving deeper into the fund's composition, its top 5 holdings encompass ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Jyoti CNC Automation Ltd., and Zomato Ltd. These strategic investments mirror the fund's commitment to a diversified and robust investment approach within the market.