What distinguishes Multi Cap Funds from other types of mutual funds?

"Multi Cap Funds primarily invest in large-cap stocks for stability." "Multi Cap Funds exclusively focus on high-growth small-cap companies." "Multi Cap Funds offer a diversified portfolio across different market capitalizations." "Multi Cap Funds are restricted to a specific sector, such as technology or healthcare."

What key advantage does a Multi Cap Fund offer to investors compared to a large-cap or small-cap fund?

"Guaranteed higher returns compared to other fund types." "Lower expense ratios due to diversified investments." "Flexibility for fund managers to exploit opportunities across market caps." "Elimination of market risk due to a balanced portfolio."

How do Multi Cap Funds manage risk during economic fluctuations?

"By investing solely in government bonds during recessions." "By increasing exposure to small-cap stocks during economic slowdowns." "By adjusting the proportion of large, mid, and small-cap stocks based on market conditions." "By withdrawing all investments and holding cash until the market recovers."

What is the recommended investment horizon for individuals considering Multi Cap Funds?

"Short-term trading for quick profits." "Less than one year for tax benefits." "Long-term investment for wealth creation." "Dependent on the individual's age and financial goals."

How does the taxation on Multi Cap Funds work in relation to capital gains?

"Capital gains are entirely tax-exempt for Multi Cap Funds." "Tax rates on capital gains are fixed regardless of the holding period." "Long-term capital gains are taxed at a higher rate than short-term gains." "Tax rates on capital gains vary based on the duration for which the units are held."