Best Multi Cap Mutual Funds in August 2026

Last Reviewed and Updated: 17 Aug 2026

A data driven ranking of 32 direct growth multi cap schemes, based on fund data last updated 17 August 2026

Multi cap funds are structurally distinct from every other equity category reviewed in this series. SEBI's September 2020 mandate requires these schemes to hold a minimum of 25% each in large cap stocks (top 100 companies by market capitalisation), mid cap stocks (101st to 250th), and small cap stocks (251st onwards), with the remaining 25% at the fund manager's discretion.

The mandatory floor in all three cap segments simultaneously makes multi cap funds both more volatile than flexi cap or large cap options and more broadly diversified by design than pure mid cap or small cap funds.

This article analyses 32 direct growth multi cap schemes using data as of 17 August 2026. Of the 32 funds, 20 have a 3 year return and just 9 have a 5 year return. The remaining 12 funds are too recently launched to have either metric. The category benchmark returns for 3 year and 5 year periods were not available in the source data for this update. All numbers are drawn directly from the fund data set.

The Category's Track Record Limitations

The multi cap category in its current SEBI mandated form is still relatively young. Most fund houses restructured or relaunched their multi cap schemes from 2021 onwards following the September 2020 regulatory change, which is why only 9 of the 32 funds have accumulated a 5 year track record and 12 have no return data at all.

This article handles this limitation by showing the 5 year table in full (all 9 eligible funds) rather than truncating to a top 10, and by being explicit about which 3 year return leaders have no 5 year history to assess.

The absence of a category benchmark in the source data for this update is also noted. The 1 year benchmark return of 6.84% is available but not used as a primary ranking criterion. Investors comparing multi cap funds to a passive benchmark should independently verify current Nifty 500 TRI or BSE 500 TRI returns over the relevant holding periods.

How These Funds Were Ranked

The 3 year return table covers 20 funds. The 5 year return table shows all 9 eligible funds. Four funds appear in the 3 year top 10 and also have a 5 year return: Mahindra Manulife Multi Cap Fund, ICICI Prudential Multicap Fund, ITI Multi Cap Fund, and Baroda BNP Paribas Multi Cap Fund.

These four offer the most complete picture available in this category. Expense ratio, AUM, and 3 year Sharpe ratio are included throughout. Several funds carry expense ratios above 1.0%, which may reflect regular plan data in the source, and these are flagged where relevant.

Multi Cap Fund Rankings: 3 Year vs 5 Year

Ranked by 3 Year Annualised Return

Rank	Fund	3Y Return	AUM
1	Axis Multicap Fund	21.91%	₹10,973.14 Cr
2	HSBC Multi Cap Fund	21.16%	₹6,067.77 Cr
3	Bank of India Multi Cap Fund	20.37%	₹1,258.70 Cr
4	LIC MF Multi Cap Fund	20.29%	₹2,130.39 Cr
5	Kotak Multicap Fund	19.60%	₹29,274.39 Cr
6	ITI Multi Cap Fund	19.58%	₹1,468.28 Cr
7	Mahindra Manulife Multi Cap Fund	19.49%	₹7,184.31 Cr
8	ICICI Prudential Multicap Fund	18.44%	₹18,769.03 Cr
9	Union Multicap Fund	17.34%	₹1,420.10 Cr
10	Baroda BNP Paribas Multi Cap Fund	16.75%	₹3,432.00 Cr

20 of 32 funds have a 3 year return. NA* indicates no 5 year track record. The category 3 year benchmark return was not available in the source data. Axis Multicap Fund's expense ratio of 1.13% is flagged for verification against direct plan pricing.

5 Year Returns: All 9 Eligible Funds

Only 9 of the 32 funds have a 5 year return. This table shows all 9 rather than a top 10.

Rank	Fund	5Y Return	AUM
1	Nippon India Multi Cap Fund	19.36%	₹55,587.00 Cr
2	Mahindra Manulife Multi Cap Fund	17.52%	₹7,184.31 Cr
3	ICICI Prudential Multicap Fund	16.42%	₹18,769.03 Cr
4	ITI Multi Cap Fund	15.60%	₹1,468.28 Cr
5	Baroda BNP Paribas Multi Cap Fund	15.12%	₹3,432.00 Cr
6	Aditya Birla Sun Life Multi Cap Fund	14.43%	₹7,181.55 Cr
7	Sundaram Multi Cap Fund	14.05%	₹2,980.72 Cr
8	Invesco India Multicap Fund	13.23%	₹4,301.86 Cr
9	Quant Multi Cap Fund	13.02%	₹7,716.92 Cr

All 9 funds with 5 year data are shown. Nippon India Multi Cap Fund leads by a 1.84 percentage point margin. Quant Multi Cap Fund carries a 1.01% expense ratio, which may reflect regular plan pricing.

Four funds appear in the 3 year top 10 and also have a 5 year track record: Mahindra Manulife Multi Cap Fund (7th by 3 years, 2nd by 5 years), ICICI Prudential Multicap Fund (8th by 3 years, 3rd by 5 years), ITI Multi Cap Fund (6th by 3 years, 4th by 5 years), and Baroda BNP Paribas Multi Cap Fund (10th by 3 years, 5th by 5 years).

These four are the most completely evaluated funds in the data set. Among them, Mahindra Manulife has the strongest returns on both horizons and the lowest cost, making it the most compelling dual horizon option in the category.

A Closer Look at the Top Performers

1. Axis Multicap Fund: Leads 3 Year Table, Expense Needs Verification

Axis Multicap Fund, managed by Hitesh Das, delivers the highest 3 year return in the category at 21.91% and the highest Sharpe ratio at 0.86. However, its expense ratio of 1.13% in this data set is significantly above the typical direct plan range for a multi cap fund and above its own June 2026 reading of 0.62%.

This strongly suggests the August source data for this fund reflects a regular plan entry rather than direct plan pricing. Investors should verify the current direct plan expense ratio before considering this fund.

If the direct plan expense is confirmed at a level consistent with June 2026 (around 0.60% to 0.65%), Axis Multicap Fund becomes a very strong candidate on combined return and risk adjusted metrics. At its current reported 1.13%, the net return advantage over lower cost peers narrows considerably.

2. HSBC Multi Cap Fund: Second on 3 Year Returns, No 5 Year History

HSBC Multi Cap Fund, managed by Venugopal Manghat, ranks 2nd by 3 year return at 21.16% with a Sharpe ratio of 0.76 and an expense ratio of 0.84%. The fund does not yet have a 5 year track record. Its 3 year return places it 0.75 percentage points behind Axis but 1.67 percentage points ahead of third placed Bank of India.

At Rs 6,067.77 Cr in AUM, the fund is well sized for the multi cap universe across all three mandatory cap segments. For investors focused on the 3 year window and comfortable with the absence of a longer history, HSBC Multi Cap Fund offers a credible return profile at a moderate cost.

3. Mahindra Manulife Multi Cap Fund: Most Consistent Across Both Horizons

Mahindra Manulife Multi Cap Fund, managed by Fatema Pacha, ranks 7th by 3 year return (19.49%) and 2nd by 5 year return (17.52%). With the lowest expense ratio among all funds with a proven dual horizon track record at 0.41%, a Sharpe ratio of 0.74, and returns comfortably above peers on the longer horizon, it is the most comprehensively strong option in this data set.

The gap between its 3 year and 5 year ranks (7th versus 2nd) indicates that its long term execution has been more impressive than its recent 3 year performance suggests, which is a more reliable signal of fund quality than 3 year outperformance alone.

For investors who want the best available combination of cost, consistency, and dual horizon performance in the multi cap category, Mahindra Manulife Multi Cap Fund is the clearest choice.

4. Nippon India Multi Cap Fund: Leads 5 Year Table at Scale

Nippon India Multi Cap Fund leads the 5 year return table at 19.36%, a 1.84 percentage point lead over second placed Mahindra Manulife. It is the largest fund in the category by a very significant margin at Rs 55,587.00 Cr in AUM.

However, its 3 year return of 15.94% ranks only 13th among the 20 funds with data, continuing the same pattern observed in the June 2026 data where Nippon India's long term strength has not been matched by recent relative performance.

Its Sharpe ratio of 0.60 and expense ratio of 0.60% are both moderate. For genuinely long horizon investors who can accept recent softness in favour of the strongest available 5 year track record, Nippon India remains a valid anchor choice in this category.

5. ICICI Prudential Multicap Fund: Large Scale With Dual Horizon Consistency

ICICI Prudential Multicap Fund, managed by Lalit Kumar, ranks 8th by 3 year return (18.44%) and 3rd by 5 year return (16.42%). With Rs 18,769.03 Cr in AUM it is the second largest fund among those with a 5 year track record.

Its Sharpe ratio of 0.71 is above the category median and its expense ratio of 0.78% is within the reasonable direct plan range. For investors who want the combination of meaningful institutional scale and verified performance across both time horizons, ICICI Prudential Multicap Fund is among the most defensible choices in the category.

Best Risk Adjusted Returns: Highest Sharpe Ratio

Fund	3Y Sharpe Ratio
Axis Multicap Fund	0.86
Bank of India Multi Cap Fund	0.80
HSBC Multi Cap Fund	0.76
Mahindra Manulife Multi Cap Fund	0.74
LIC MF Multi Cap Fund	0.73
Kotak Multicap Fund	0.72

Axis Multicap Fund leads the Sharpe table at 0.86, indicating the best return per unit of risk over 3 years. Subject to expense ratio verification, this makes Axis the strongest option on risk adjusted terms.

Bank of India Multi Cap Fund ranks second at 0.80 despite not making the top 3 by raw return, suggesting it has delivered strong returns with particularly well controlled volatility. LIC MF Multi Cap Fund is notable for placing in the Sharpe top 5 at 0.73 with a 20.29% 3 year return, though its lack of a 5 year track record limits full evaluation.

Mahindra Manulife at 0.74 is the only fund in the Sharpe table that also has a strong 5 year return, reinforcing its position as the most complete option in the category.

Lowest Cost Multi Cap Funds

Fund	Expense Ratio	3Y Return	5Y Return
Mirae Asset Multicap Fund	0.39%	NA*	NA*
Mahindra Manulife Multi Cap Fund	0.41%	19.49%	17.52%
Canara Robeco Multi Cap Fund	0.43%	16.59%	NA*
Franklin India Multi Cap Fund	0.44%	NA*	NA*
Tata Multicap Fund	0.46%	12.62%	NA*
Kotak Multicap Fund	0.49%	19.60%	NA*
Bandhan Multi Cap Fund	0.49%	15.26%	NA*

NA* indicates no return data available for this period.

Mirae Asset Multicap Fund at 0.39% is the lowest cost option in the category but has no return data for comparison. Among funds with a 3 year track record, Mahindra Manulife at 0.41% delivers the strongest returns of any cheaply priced option at 19.49% over 3 years and 17.52% over 5 years.

Kotak Multicap Fund at 0.49% offers the second best returns among the low cost group at 19.60% over 3 years, though it does not yet have a 5 year history. Canara Robeco at 0.43% delivers 16.59% over 3 years, which is solid but below the top performers.

Tata Multicap at 0.46% has delivered a weak 12.62% over 3 years, a return that would need to be weighed against the category benchmark when that figure becomes available. For cost focused investors with a dual horizon requirement, Mahindra Manulife remains the only fund combining a low expense ratio with proven performance on both horizons.

The Largest Multi Cap Funds by AUM

Fund	AUM
Nippon India Multi Cap Fund	₹55,587.00 Cr
Kotak Multicap Fund	₹29,274.39 Cr
SBI Multicap Fund	₹24,146.76 Cr
HDFC Multi Cap Fund	₹20,582.74 Cr
ICICI Prudential Multicap Fund	₹18,769.03 Cr
Axis Multicap Fund	₹10,973.14 Cr

Nippon India Multi Cap Fund at Rs 55,587.00 Cr is the dominant fund by AUM and the only large fund with a proven 5 year track record. Its 3 year return of 15.94% ranks 13th among 20 funds, which is a softer recent showing, but its 5 year lead at 19.36% confirms the longer term quality of the franchise.

Kotak Multicap Fund is the second largest at Rs 29,274.39 Cr and delivers a competitive 19.60% over 3 years at 0.49% expense, but lacks 5 year data. SBI Multicap Fund and HDFC Multi Cap Fund, the third and fourth largest, deliver 14.95% and 14.38% respectively over 3 years, placing them in the lower half of the return table while charging 0.95% and 0.92%.

For investors choosing on size alone, neither SBI nor HDFC has demonstrated a performance premium to justify their large AUM positioning in the category's recent 3 year window.

Expense Ratios That Need Attention

Fund	Expense Ratio	Note
Samco Multi Cap Fund	2.44%	Highest in category by far; no return history to evaluate
Motilal Oswal Multi Cap Fund	1.23%	No return data; may be regular plan (June 2026 showed 0.75%)
Axis Multicap Fund	1.13%	Likely regular plan; June 2026 showed 0.62% for this fund
Quant Multi Cap Fund	1.01%	Poorest 3Y return in category; high cost amplifies underperformance

Samco Multi Cap Fund at 2.44% carries the highest expense ratio in the category with no return data to evaluate. Motilal Oswal Multi Cap Fund at 1.23% similarly has no return history and is likely a regular plan entry given its June 2026 direct plan rate of 0.75%.

Axis Multicap Fund is the most important case to verify: it leads the 3 year return table at 21.91% but its 1.13% expense is almost double the 0.62% shown in the June 2026 data.

If the August figure is confirmed as a direct plan rate, the net return calculation for investors changes significantly relative to lower cost peers.

Quant Multi Cap Fund illustrates the compounding problem of high cost and weak returns: at 1.01% expense and 12.03% 3 year return it has delivered the weakest return in the category while charging the fourth highest fee.

What These Funds Actually Hold

SEBI mandates a minimum of 25% each in large cap, mid cap, and small cap stocks. In practice, most multi cap funds in this data set hold between 25% and 40% in each segment, with the 25% discretionary allocation typically directed toward the segment offering the highest near term conviction.

The mandatory small cap floor of 25% is the structural feature that distinguishes multi cap funds from flexi cap funds and explains why multi cap funds are structurally more volatile than their flexi cap counterparts.

The large cap portions of most portfolios are anchored by HDFC Bank, ICICI Bank, and Reliance Industries. The mid cap and small cap components drive the differentiation between funds.

Funds with stronger 3 year returns such as Axis Multicap, HSBC Multi Cap, and Mahindra Manulife tend to run more concentrated mid cap and small cap positions with higher conviction in sectors including industrials, capital goods, specialty chemicals, and healthcare.

Funds with weaker 3 year returns such as Quant, SBI, and HDFC Multi Cap tend toward broader diversification within each segment, which has limited both upside and downside in the recent period.

Things to Consider Before Investing

• Axis Multicap Fund's expense ratio must be verified before any investment decision. It leads the 3 year return table and has the best Sharpe ratio in the category, but 1.13% versus the category's direct plan norm of 0.41% to 0.84% represents a very large cost gap. Verify the current direct plan expense ratio against the AMC's scheme information document before proceeding.

• Mahindra Manulife Multi Cap Fund is the most comprehensively strong option across all dimensions that can be evaluated with confidence: 7th by 3 years, 2nd by 5 years, lowest cost among dual horizon funds at 0.41%, and the 4th highest Sharpe ratio. For investors who want a single fund with the strongest verifiable combination of cost, consistency, and dual horizon returns, it is the clearest choice in the category.

• Nippon India Multi Cap Fund has a track record limitation that investors should understand. Its 5 year return of 19.36% leads the category, but its 3 year return of 15.94% ranks 13th of 20. This is the same pattern observed in the June 2026 data. The fund's more recent performance has been meaningfully softer than its longer term history, which may reflect AUM scale constraints at Rs 55,587.00 Cr limiting its agility in the mid cap and small cap segments.

• SBI Multicap Fund and HDFC Multi Cap Fund both manage over Rs 20,000 Cr in assets while delivering returns in the lower half of the 3 year table (14.95% and 14.38% respectively). Until these funds provide 5 year return data and demonstrate a stronger performance relative to peers and the benchmark, they represent a combination of scale without a proportionate performance premium.

• Twelve funds in the category have no return data at all. Among the better capitalised of these, Franklin India Multi Cap Fund (Rs 5,095.56 Cr, 0.44% expense), Mirae Asset Multicap Fund (Rs 5,278.04 Cr, 0.39% expense), and WhiteOak Capital Multi Cap Fund (Rs 3,850.16 Cr, 0.51% expense) are worth monitoring as their track records develop given their competitive cost structures and established fund house credentials.

• The mandatory 25% minimum small cap allocation makes multi cap funds structurally more volatile than large cap, large and mid cap, or flexi cap options. Investors choosing this category should have a minimum 5 year horizon and be prepared for sharper interim drawdowns than in other equity categories.

Full Fund Universe: Quick Reference

Fund	3Y Return	5Y Return	Expense Ratio	AUM
Axis Multicap Fund	21.91%	NA*	1.13%	₹10,973.14 Cr
HSBC Multi Cap Fund	21.16%	NA*	0.84%	₹6,067.77 Cr
Bank of India Multi Cap Fund	20.37%	NA*	0.76%	₹1,258.70 Cr
LIC MF Multi Cap Fund	20.29%	NA*	0.86%	₹2,130.39 Cr
Kotak Multicap Fund	19.60%	NA*	0.49%	₹29,274.39 Cr
ITI Multi Cap Fund	19.58%	15.60%	0.78%	₹1,468.28 Cr
Mahindra Manulife Multi Cap Fund	19.49%	17.52%	0.41%	₹7,184.31 Cr
ICICI Prudential Multicap Fund	18.44%	16.42%	0.78%	₹18,769.03 Cr
Union Multicap Fund	17.34%	NA*	0.84%	₹1,420.10 Cr
Baroda BNP Paribas Multi Cap Fund	16.75%	15.12%	0.75%	₹3,432.00 Cr
Canara Robeco Multi Cap Fund	16.59%	NA*	0.43%	₹5,750.84 Cr
Aditya Birla Sun Life Multi Cap Fund	16.32%	14.43%	0.67%	₹7,181.55 Cr
Nippon India Multi Cap Fund	15.94%	19.36%	0.60%	₹55,587.00 Cr
Sundaram Multi Cap Fund	15.64%	14.05%	0.78%	₹2,980.72 Cr
Invesco India Multicap Fund	15.46%	13.23%	0.62%	₹4,301.86 Cr
Bandhan Multi Cap Fund	15.26%	NA*	0.49%	₹3,005.32 Cr
SBI Multicap Fund	14.95%	NA*	0.95%	₹24,146.76 Cr
HDFC Multi Cap Fund	14.38%	NA*	0.92%	₹20,582.74 Cr
Tata Multicap Fund	12.62%	NA*	0.46%	₹3,542.75 Cr
Quant Multi Cap Fund	12.03%	13.02%	1.01%	₹7,716.92 Cr
Motilal Oswal Multi Cap Fund	NA*	NA*	1.23%	₹4,491.96 Cr
DSP Multicap Fund	NA*	NA*	0.65%	₹2,997.86 Cr
Franklin India Multi Cap Fund	NA*	NA*	0.44%	₹5,095.56 Cr
WhiteOak Capital Multi Cap Fund	NA*	NA*	0.51%	₹3,850.16 Cr
UTI Multi Cap Fund	NA*	NA*	0.80%	₹2,130.93 Cr
Edelweiss Multi Cap Fund	NA*	NA*	0.62%	₹3,431.84 Cr
Bajaj Finserv Multi Cap Fund	NA*	NA*	0.57%	₹1,510.55 Cr
TRUSTMF Multi Cap Fund	NA*	NA*	0.55%	₹681.02 Cr
Groww Multicap Fund	NA*	NA*	1.00%	₹708.92 Cr
Mirae Asset Multicap Fund	NA*	NA*	0.39%	₹5,278.04 Cr
PGIM India Multi Cap Fund	NA*	NA*	0.80%	₹430.86 Cr
Samco Multi Cap Fund	NA*	NA*	2.44%	₹243.98 Cr

Table sorted by 3 year return. NA* indicates no data available. Category 3 year and 5 year benchmark returns were not available in the source data. Axis Multicap Fund and Motilal Oswal Multi Cap Fund expense ratios may reflect regular plan data and require verification.

This article is based on fund data as of 17 August 2026 and is intended for informational purposes only and is not investment advice. Mutual fund investments are subject to market risks and past performance does not guarantee future returns. Expense ratios for Axis Multicap Fund and Motilal Oswal Multi Cap Fund may reflect regular plan data rather than direct plan pricing; investors should verify current direct plan expense ratios before investing. Category benchmark returns for 3 year and 5 year periods were not available in the source data. Consult a SEBI registered financial advisor before making investment decisions.

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