Want to become rich? This scheme has the potential to do just that; Check expert's tips to accumulate wealth

Money on your mind? Want to become rich? Then you have to do some homework and our expert is here to offer top tips.

If your quest is to make yourself rich, then know that Multi-cap mutual funds give better returns if the investment is for long-term and that means more than six years.

Every investor wants to become rich and that is the only purpose behind their investment. To generate a big profit from the money in their hand is the objective and that in turn may be to fulfill some particular goal - to buy a house, car or fund daughter's wedding and more. However, sometimes they come across some shocking revelation about their investments when they look at the maturity amount they get at the end. Yes, many times their money doe not generate much profit and there are instances of losses even!

There are various reasons for this. This happens due to the lack of proper regulation of the mutual fund scheme they have invested in, and to some extent lack of awareness about the category and better performing schemes.

Solution? For such investors, multi-cap mutual funds are a better option as it is a mix of small-cap, mid-cap and large-cap funds and one can diversify one's portfolio by investing in multi-cap mutual funds.

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On how does it helps an investor when the stock market falls, Neeraj Chauhan, CEO at Financial Mall said, "Multi-cap funds are a mix of all equity mutual funds. Hence, when the stock market fells sharply, a mixture of all categories help an investor to some extent as large-cap and mid-cap funds fell lower in comparison to the small-cap funds." He said that multi-cap funds are better suited for the new entrant into the mutual fund investments as it gives the benefit of all equity categories of the mutual funds. It has a balanced risk appetite that helps an investor minimise the losses and maximise their returns.

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On multicap fund growth, Chauhan said, "Multi-cap mutual fund gives better return if the investment is for long-term. If an investor invests for 6 years or more then multi-cap funds get enough time to maximise one's money invested in the fund." Asked about some major multi-cap mutual funds that can give better returns to a mutual fund investor Neeraj Chauhan of Financial Mall said, "Kotak Standard Multi Cap Fund, Invesco India Growth Opportunities Fund, Motilal Oswal Multi Cap 35 Fund, SBI Magnum Multi Cap Fund and Mirae Asset Emerging Blue Chip Fund are the multi-cap funds that can give better returns to the investor if this mutual fund investment is for long-term."

So, ultimately, in the quest of becoming rich, it is the investor who must exercise his mind to make the choice of the best investment option. Experts are there to give an informed outlook, guidance and analyse past trends alone. All of this is part of the homework that an investor must do before he chooses any option to invest in.

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