The domestic market has experienced significant fluctuations this year, with a decline of more than 10% compared to the beginning of the year. It’s best to start diversifying your portfolio now when Sensex is 3.90% and Nifty 50 is 3.74% near 52-week lows, to hedge a sector’s impact or stock portfolio over your entire portfolio in a volatile market. Multi-cap mutual funds can be useful when diversifying because the fund manager invests in all large, mid-cap, and small-cap stocks, generating high market-based returns over the long term. with a diversified portfolio. The fund can generate substantial risk-adjusted returns on your equity asset support over a period of three to five years. Multi-cap funds are required to invest 25% of their total assets in large, mid-cap, and small-cap companies or at least 65% to invest in equities & equity-linked securities, according to the report. SEBI’s classification shows that the fund can generate substantial risk-adjusted returns for your equity asset support over the long term of 3 to 5 years. Here are two multi-cap funds, taking into account the fund portfolio, that have generated SIP returns of up to 31% over the past three years.