Union Multicap Fund

Union Multicap Fund has delivered a 1-year XIRR of 12.75% and a 3-year XIRR of 13.12%, both below the category averages of 15.06% and 16.01% respectively. However, its rolling 3-year mean return of 19.24% is strong, and it has consistently outperformed the NIFTY 50 benchmark across all periods, with a 1-year fund CAGR of 13.9% versus -2.9% for the benchmark.

The fund exhibits moderate risk with a maximum drawdown of -0.198% and an average drawdown of -0.035%, indicating relatively shallow declines. The maximum drawdown duration of 158 days and recovery period of 433 days suggest that recoveries can take over a year, but the Calmar ratios of 0.97 (1Y) and 0.94 (3Y) reflect reasonable risk-adjusted returns. Downside capture is consistently below 90% across all periods, indicating the fund loses less than the market during downturns.

The portfolio is well-diversified with 68 holdings, led by ICICI Bank (4.98%), HDFC Bank (3.45%), and Larsen & Toubro (2.96%). Sector concentration is moderate, with banks at 20.1% and auto components at 8.7%, while pharmaceuticals and IT software add further diversification. The top 10 holdings account for about 27.6% of assets, suggesting a balanced approach without excessive single-stock risk.

The fund's XIRR trails the multi-cap category average by 2.31% (1Y) and 2.89% (3Y), indicating underperformance relative to peers. However, its rolling returns and benchmark outperformance suggest consistency in beating the index, though not necessarily the category. The fund has shown volatile calendar year returns, with a strong 33.1% in 2023 but a modest 3.05% in 2025, reflecting variability in performance.

This fund is suitable for investors with a long-term horizon (5+ years) who can tolerate moderate drawdowns and are seeking diversified exposure across market caps. It is best for those who prioritize downside protection, as evidenced by lower downside capture ratios, and are comfortable with returns that may lag category peers in strong bull markets. Investors should have a medium-to-high risk tolerance given the multi-cap nature and potential for extended recovery periods.

• Consistent outperformance over the NIFTY 50 benchmark across all time periods, with positive alpha ranging from 2.24% (15Y) to 16.67% (1Y).
• Strong downside protection with downside capture ratios below 90% across all periods, indicating the fund loses less than the market during downturns.
• Diversified portfolio with 68 holdings and moderate sector concentration, reducing single-stock and sector-specific risks.

• Underperformance relative to the multi-cap category average, with XIRR trailing by 2.31% (1Y) and 2.89% (3Y), suggesting the fund may not be a top performer among peers.
• Long recovery period of 433 days from maximum drawdown, which could test investor patience during prolonged market downturns.