Best Multi Cap mutual funds in India
- Mar 26
- 6 min read
Updated: Jul 12
Multi cap mutual funds are open-ended equity schemes mandated by SEBI to invest across all three market cap segments simultaneously, with a minimum of 25% in each of large-cap, mid-cap, and small-cap companies. This structural mandate is what distinguishes multi cap from flexi cap funds, which have no such floors.
The multi cap category was redefined in November 2020 when SEBI separated it from flexi cap and mandated genuine diversification. The 25-25-25 rule forces fund managers to maintain meaningful small and mid-cap exposure even during bear markets, which has historically amplified returns in bull phases while increasing drawdowns during corrections.
As of February 2026, the 14 SEBI-regulated Multi Cap funds analysed in this report collectively manage over Rs 3 lakh crore in combined AUM. The category has seen strong retail inflows since the 2020 restructuring.
What sets Multi Cap funds apart is their SEBI-mandated structure, which guarantees that investors always hold meaningful exposure across market caps. Unlike flexi cap funds where managers sometimes default to 70% to 80% large cap, multi cap funds cannot make that defensive move.
India’s mid and small cap segments have historically outperformed large caps over 10-year periods by meaningful margins. Multi cap funds, with their mandated exposure to all three segments, have captured this return premium while offering the diversification benefit of broad market coverage.
The mandatory 25% small cap allocation positions these funds to amplify gains during bull markets, as small caps tend to lead recoveries and outperform in early cycle phases. This comes at the cost of larger drawdowns during corrections, which investors must be prepared for.
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The following data is based on analysis of 14 SEBI-regulated Multi Cap funds. All returns are annualised (CAGR) for Direct Growth plans as of February 2026.
Metric | Range | Category Leaders |
Funds Analysed | 14 funds | All SEBI-regulated Multi Cap |
Inception Returns | 15.2% - 20.2% | LIC MF Multi Cap (20.2%) |
10Y Returns | 16.1% - 18.5% | Quant Multi Cap (18.5%) |
5Y Returns | 16.5% - 23.4% | Nippon India Multi Cap (23.4%) |
3Y Returns | 13.2% - 25.5% | Kotak Multicap (25.5%) |
Highest TER | 0.45% - 0.94% | Lowest: 0.45% (Kotak) |
Best Sharpe Ratio | 0.36 - 1.19 | Axis Multicap (1.19) |
Best Alpha | -6.71 to +4.89 | Axis Multicap (4.89) |
Largest AUM | ₹1,766 Cr - ₹48,809 Cr | Nippon India (₹48,809 Cr) |
The following tables rank the top-performing Multi Cap mutual funds across four time horizons: Since Inception, 10-Year, 5-Year, and 3-Year.
Note: not all funds have complete track records across all time periods; only funds with sufficient history are included in each horizon table.
Top Multi Cap funds by returns since inception (CAGR)
Rank | Fund Name | Returns (CAGR) |
1 | LIC MF Multi Cap Fund | 20.2% |
2 | Kotak Multicap Fund | 18.9% |
3 | Quant Multi Cap Fund | 18.1% |
4 | HDFC Multi Cap Fund | 18.0% |
5 | Mahindra Manulife Multi Cap Fund | 17.9% |
6 | Invesco India Multicap Fund | 17.7% |
7 | Aditya Birla Sun Life Multi Cap Fund | 17.2% |
8 | Axis Multicap Fund | 16.8% |
9 | Nippon India Multi Cap Fund | 16.4% |
10 | ICICI Prudential Multicap Fund | 16.4% |
Top Multi Cap funds by 10-year returns (CAGR)
Note: only 6 of the 14 funds in this dataset have a 10-year track record. Funds launched after the 2020 SEBI restructuring are excluded from this table.
Rank | Fund Name | 10Y CAGR |
1 | Quant Multi Cap Fund | 18.5% |
2 | Nippon India Multi Cap Fund | 17.4% |
3 | ICICI Prudential Multicap Fund | 17.1% |
4 | Sundaram Multi Cap Fund | 17.1% |
5 | Baroda BNP Paribas Multi Cap Fund | 16.8% |
6 | Invesco India Multicap Fund | 16.1% |
Top Multi Cap funds by 5-year returns (CAGR)
Note: 7 of the 14 funds have a 5-year CAGR track record. The 5-year window (Feb 2021 to Feb 2026) captures both a strong bull market and a period of consolidation.
Rank | Fund Name | 5Y CAGR |
1 | Nippon India Multi Cap Fund | 23.4% |
2 | Mahindra Manulife Multi Cap Fund | 20.9% |
3 | ICICI Prudential Multicap Fund | 18.6% |
4 | Baroda BNP Paribas Multi Cap Fund | 18.2% |
5 | Quant Multi Cap Fund | 17.6% |
6 | Sundaram Multi Cap Fund | 17.2% |
7 | Invesco India Multicap Fund | 16.5% |
Top 10 Multi Cap funds by 3-year returns (CAGR)
Rank | Fund Name | 3Y CAGR |
1 | Kotak Multicap Fund | 25.5% |
2 | Axis Multicap Fund | 23.7% |
3 | Mahindra Manulife Multi Cap Fund | 23.0% |
4 | Nippon India Multi Cap Fund | 22.7% |
5 | LIC MF Multi Cap Fund | 22.7% |
6 | ICICI Prudential Multicap Fund | 21.4% |
7 | HDFC Multi Cap Fund | 21.3% |
8 | Baroda BNP Paribas Multi Cap Fund | 19.6% |
9 | Sundaram Multi Cap Fund | 19.5% |
10 | Aditya Birla Sun Life Multi Cap Fund | 19.1% |
Across all 14 Multi Cap funds analysed, Financial Services emerges as the dominant sector, typically representing 20% to 35% of most portfolios. Key sectoral observations:
• Financial Services Dominance: Invesco India leads with 30.77% in financials, while Kotak and Nippon India maintain 25% to 28% weightings.
• Technology Exposure: Kotak Multicap maintains a meaningful 18.93% technology allocation, the highest in the category.
• Industrials and Capex Theme: Axis Multicap (17.85%), LIC MF (18.27%), and Mahindra Manulife (16.80%) have strong industrial exposure.
• Consumer Discretionary: Nippon India (19.78%) and LIC MF (15.73%) maintain strong consumer allocations.
• Healthcare: Mahindra Manulife (13.27%) stands out with the highest healthcare allocation in the category.
• Materials Concentration: ICICI Prudential’s materials-first positioning (28.3%) is unique in the category.
• Valuation Spread: Kotak Multicap trades at the lowest P/E (17.36) and P/B (2.60) in the category.
In active equity investing, manager quality and investment philosophy are as critical as historical returns.
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Here are the standout managers driving performance across the Multi Cap category:
• Abhishek Bisen (Kotak Multicap Fund): manager of the category’s 3-year return leader (25.0% CAGR), with a value-oriented approach and the lowest portfolio P/E.
• Shreyash Devalkar (Axis Multicap Fund): the category’s leader on risk-adjusted metrics, with the highest Sharpe Ratio (1.19) and strong alpha generation (4.89).
• Sailesh Raj Bhan (Nippon India Multi Cap Fund): one of India’s most experienced equity fund managers, with a three-decade track record across multiple market cycles.
• Fatema Pacha (Mahindra Manulife Multi Cap Fund): a rising star in Indian equity fund management, combining cost efficiency (0.47% TER) with strong multi-period performance.
• Lalit Kumar (ICICI Prudential Multicap Fund): the contrarian in the category, with a unique materials-heavy tilt and the best Sortino Ratio (1.74).
Selecting a multi cap fund purely on raw returns can be dangerously misleading. Investors should rigorously evaluate the following risk-adjusted metrics:
• Sharpe Ratio: Axis Multicap leads at 1.19, followed by Kotak (1.16) and Mahindra Manulife (1.11).
• Sortino Ratio: ICICI Prudential leads at 1.74, followed by Nippon India (1.70) and Axis (1.70).
• Alpha: Axis Multicap (4.89) and Kotak (4.49) generate the highest alpha in the category.
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• Beta: Quant Multi Cap (1.06) and Kotak (1.01) have the highest beta. Axis (0.84) and ICICI Prudential (0.86) offer more defensive characteristics.
• Total Expense Ratio (TER): Quant Multi Cap leads with the lowest TER (0.43%), followed by Mahindra Manulife (0.47%) and Kotak (0.50%).
• Valuation: Kotak Multicap (P/E: 17.36) and Quant (P/E: 18.72) represent the most value-oriented portfolios in the category.
Overall Assessment and Recommendations
Across all 14 SEBI-regulated Multi Cap funds analysed, five funds emerge as best-in-class across different investor priorities:
• Best Risk-Adjusted Returns: Axis Multicap Fund. The undisputed category leader on risk-adjusted metrics, with the highest Sharpe (1.19) and strong alpha (4.89).
• Best Absolute 3-Year Returns: Kotak Multicap Fund. The category’s recent return champion at 25.0% CAGR, with the lowest P/E and P/B in the category.
• Best Long-Term Track Record: Nippon India Multi Cap Fund. The standout performer across the longest time horizons.
• Best Cost Efficiency: Mahindra Manulife Multi Cap Fund. At just 0.47% TER, second lowest in the category.
• Best Downside Protection: ICICI Prudential Multicap Fund. The category’s leader on Sortino Ratio (1.74), with a contrarian, materials-heavy construction.
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Disclaimer
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any financial instrument. Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Returns data is sourced from AMC websites and AMFI India and is accurate as of February 13, 2026. Please read all Scheme Information Documents (SID) and Key Information Memoranda (KIM) carefully before investing. Consult a SEBI-registered investment advisor for personalised advice.