Last Updated on Apr 29, 2025 by vanessa sequeira
Multi cap funds offer the stability of large-cap funds and the multibagger potential of small-cap funds while keeping the risk exposure moderate. Like flexi-cap funds, multi cap fund managers invest in companies across different market capitalisations evenly. If you’re looking to explore multi-cap funds, here’s the list of best multi cap funds derived using Tickertape Mutual Fund Screener.
Table of Contents
Best Multi Cap Funds In India
| Name | AUM (Cr) | CAGR 3Y (%) | Expense Ratio (%) | CAGR 5Y (%) |
| Nippon India Multi Cap Fund | 38,636.66 | 23.77 | 0.77 | 33.43 |
| Quant Active Fund | 9,389.39 | 13.12 | 0.57 | 32.79 |
| Mahindra Manulife Multi Cap Fund | 4,883.18 | 18.65 | 0.43 | 30.28 |
| ICICI Pru Multicap Fund | 13,938.09 | 21.13 | 0.99 | 28.96 |
| Baroda BNP Paribas Multi Cap Fund | 2,616.43 | 18.26 | 0.95 | 28.33 |
| Invesco India Multicap Fund | 3,650.56 | 19.12 | 0.7 | 27.20 |
| Sundaram Multi Cap Fund | 2,615.39 | 16.29 | 1.01 | 27.10 |
| ITI Multi-Cap Fund | 1,116.36 | 21.12 | 0.37 | 22.75 |
| Kotak Multicap Fund | 14,374.18 | 24.25 | 0.45 | 0.00 |
| Bandhan Multi Cap Fund | 2,389.29 | 19.32 | 0.65 | 0.00 |
Note: The above information is dated 28th April 2025. The parameters used to filter the list of top flexi cap funds on Tickertape’s Mutual Fund Screener are:
- Category > Equity > Multi Cap Fund
- Plan – Growth
- 5Y CAGR – Set high to low
Overview Of Best Multi Cap Funds In India
Nippon India Multi Cap Fund
Nippon India Multi Cap Fund aims to generate capital appreciation and provide long-term growth opportunities by investing in a diversified portfolio of equity and equity-related securities. The fund also seeks to generate consistent returns by allocating a portion to debt and money market securities.
Quant Active Fund
Among the best multi-cap funds 2025, Quant Active Fund focuses on generating capital appreciation and long-term growth. It invests across large-cap, mid-cap, and small-cap companies, offering exposure to a broad equity market spectrum.
Mahindra Manulife Multi Cap Fund
Mahindra Manulife Multi Cap Fund seeks medium to long-term capital appreciation through a diversified portfolio of equity and equity-related securities, with a focus on maintaining low business quality risk through appropriate diversification.
ICICI Prudential Multicap Fund
As one of the multi-cap funds with high returns, ICICI Prudential Multicap Fund aims to deliver capital appreciation by investing across large-cap, mid-cap, and small-cap stocks spanning various industries and sectors.
Baroda BNP Paribas Multi Cap Fund
Baroda BNP Paribas Multi Cap Fund targets long-term capital appreciation through a carefully researched and diversified portfolio comprising equity, equity-related securities, money market instruments, and debt securities.
Features of Multi Cap Mutual Funds
- Diversification Across Market Caps: Multi-cap mutual fund schemes invest in a mix of large-cap, mid-cap, and small-cap stocks, providing diversified exposure to the equity market.
- Flexibility in Allocation: Fund managers have the flexibility to allocate funds across different market caps based on market conditions and opportunities. This flexibility makes multi-cap funds a dynamic investment option.
- Balanced Risk: The presence of large-cap stocks provides stability, while mid-cap and small-cap stocks offer growth potential, striking a balance between risk and reward.
- Active Management: The best multi-cap mutual funds India are actively managed by experienced fund managers who make strategic decisions about the allocation between different market segments.
Advantages of Investing in Multi-Cap Funds
- Diversification: Investing in multi-cap funds provides instant diversification across market caps, reducing the risk associated with investing in just one segment of the market.
- Growth Potential: With exposure to mid-cap and small-cap stocks, investors can benefit from the high growth potential of these companies while still having the stability of large-cap stocks.
- Flexibility in Market Conditions: The ability to switch between market caps depending on the economic cycle or market conditions allows these funds to capitalise on changing trends and sectors.
- Professional Management: The top multi-cap funds are managed by skilled professionals who continuously monitor and adjust the portfolio based on market dynamics, ensuring optimal performance.
- Accessibility: Multi-cap fund options are available as mutual fund schemes and can be accessed by investors of all types, from those with small budgets to those looking to invest large sums.
Who Should Explore Multi Cap Mutual Funds
- Long-Term Investors: Multi-cap equity funds are well-suited for long-term investors seeking balanced risk and growth potential. The combination of large, mid, and small-cap stocks can deliver steady returns over time.
- Risk-Tolerant Investors: Investors who are willing to accept a moderate level of risk in exchange for the possibility of high returns might find top-performing multi-cap funds an appealing option.
- Diversification Seekers: Those who want a diversified portfolio without the need to select individual stocks from each market cap category will benefit from the all-encompassing approach of multi-cap funds for growth.
- SIP Investors: Multi-cap mutual funds for SIP are ideal for investors, as they allow regular contributions while taking advantage of rupee cost averaging over time.
Risks Involved While Investing in Multi Cap Mutual Funds
- Market Risk: Like any equity-based investment, high-return multi-cap funds are subject to market fluctuations. Although they provide a diversified portfolio, they still carry the inherent risk of equity market volatility.
- Manager Risk: The performance of multi-cap mutual funds is highly dependent on the skill of the fund manager. A poor management strategy could negatively impact returns.
- Concentration Risk: Even though high-growth multi-cap funds diversify across market caps, they may still be exposed to certain sectors or stocks, especially if the fund manager is heavily concentrated in a few industries.
- Liquidity Risk: While mutual funds are generally liquid, the risk arises if there’s a sudden market correction that affects the underlying stocks in the portfolio, which could impact the redemption value.
- Regulatory Risks: Changes in tax policies, SEBI regulations, or other government policies could have a direct impact on high-return multi-cap funds.
Factors to Consider While Investing in Multi Cap Mutual Funds
- Investment Horizon: Multi-cap funds are best suited for investors with a long-term horizon, as they are designed to withstand market volatility and generate superior returns over time.
- Risk Profile: Assess your risk tolerance before investing. Multi-cap growth funds offer a balance of risk, but understanding your comfort with market fluctuations is essential.
- Fund Manager’s Track Record: The skill and experience of the fund manager can greatly influence the fund’s performance. Look for managers with a proven track record of successfully managing multi-cap portfolios.
- Expense Ratio: The expense ratio is the annual fee charged by the fund for managing the portfolio. A lower expense ratio typically leads to better returns for the investor.
- Performance History: Review the historical performance of the fund, but remember that past performance is not indicative of future results. Pay attention to the consistency of returns over various market cycles.
Taxation on Multi Cap Mutual Funds
– Short-Term Capital Gains (STCG): The mutual funds held for less than a year are known as STCG. These gains are taxed at 20%.
– Long-Term Capital Gains (LTCG): The mutual funds held for over a year are known as LTCG. If the gains are below Rs. 1.25 lakh, they are tax-free. If the gains are above Rs. 1.25 lakh, the gains will be taxed at 12.5% without any indexation benefit.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
Conclusion
Multi Cap Mutual Funds offer a dynamic and diversified investment option that provides exposure to different market caps and sectors, giving investors the potential to earn high returns while managing risk. Multi-cap funds for long-term are an ideal choice for those seeking a balanced investment strategy, combining growth with stability. Whether you are a first-time investor or a seasoned one, multi-cap funds can be a valuable addition to your portfolio in 2025, with the potential for both short-term and long-term growth.
Frequently Asked Questions on Multi Cap Mutual Funds (FAQs)
What is a multi cap fund?
A Multi Cap Fund is an equity mutual fund that invests across large-cap, mid-cap, and small-cap stocks. As per SEBI guidelines, multi-cap funds must allocate at least 25% each to large, mid, and small caps, offering diversified exposure across market segments.
How is a multi cap fund different from a flexi cap fund?
Multi Cap Funds must allocate at least 25% each to large-cap, mid-cap, and small-cap stocks. Flexi Cap Funds have no such fixed allocation, allowing fund managers to invest freely across market caps.
How to identify the best multi-cap mutual funds India?
To identify the best multi-cap mutual funds, use Tickertape Mutual Fund Screener to assess factors like consistent historical performance, fund manager experience and portfolio diversification. You can also check metrics like expense ratio, Sharpe ratio alpha etc. Comparing these metrics helps in selecting funds aligned with your risk profile and investment goals.
What are the top 5 performing multi cap mutual funds?
Here are the top multi-cap funds based on 5Y CAGR:
Nippon India Multi Cap Fund
Quant Active Fund
Mahindra Manulife Multi Cap Fund
ICICI Pru Multicap Fund
Baroda BNP Paribas Multi Cap Fund
Are multi cap mutual funds high risk?
Multi Cap Mutual Funds carry moderate to high risk because they invest in small and mid-cap stocks along with large caps. While large-cap stocks offer stability, exposure to mid and small caps introduces volatility, making them suitable for investors with a medium to long-term horizon.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
- Best Multi Cap Equity Mutual Funds in India (2025) - Apr 29, 2025
- Best Investment Plans for Girl Child in India (2025) - Apr 28, 2025
- Best Mutual Funds for Beginners in India: List of Funds for 2025 - Apr 28, 2025
