The best multi-cap mutual funds in India as of August 2026, based on the latest available AUM, include Nippon India Multi Cap Fund and Kotak Multicap Fund. SBI Multicap Fund, HDFC Multi Cap Fund and ICICI Prudential Multicap Fund are also among the larger schemes in the category.
Multi-cap funds invest across companies of different market sizes. Under SEBI’s classification, listed companies are grouped as large, mid and small caps based on their market capitalisation ranking.
| Equity mutual fund | Nature of stock held (based on market capitalisation) |
| Large-cap funds | The top 100 publicly listed companies |
| Mid-cap funds | 101st to 250th listed companies |
| Small-cap funds | Companies from the 251st onwards |
A multi-cap fund must invest at least 25% each in large-cap, mid-cap and small-cap stocks. This gives investors exposure to established companies as well as relatively smaller businesses within a single equity fund.
This structure gives multi-cap funds a broader spread across company sizes, but it also brings different levels of market risk. This blog compares the selected funds on returns, costs and other key factors.
Best 10 Multi Cap Mutual Funds: Quick Comparison
Here are the 10 largest active multi-cap funds by AUM (as of August 7 2026) and their key performance and cost details.
| Fund name | 3Y CAGR | 5Y CAGR | Benchmark 5Y return | AUM | Expense ratio | Minimum SIP | Risk |
| Nippon India Multi Cap Fund | 16.17% | 19.51% | 14.19% | ₹54,585 Cr | 0.58% | ₹100 | Very High |
| Kotak Multicap Fund | 19.47% | NA | 14.19% | ₹28,074 Cr | 0.42% | ₹100 | Very High |
| SBI Multicap Fund | 15.22% | NA | 14.19% | ₹23,693 Cr | 0.68% | ₹500 | Very High |
| HDFC Multi Cap Fund | 14.81% | NA | 14.19% | ₹20,217 Cr | 0.70% | ₹100 | Very High |
| ICICI Prudential Multicap Fund | 18.16% | 16.29% | 14.19% | ₹18,194 Cr | 0.78% | ₹100 | Very High |
| Axis Multicap Fund | 21.63% | NA | 14.19% | ₹10,457 Cr | 0.71% | ₹100 | Very High |
| Quant Multi Cap Fund | 11.20% | 12.66% | 14.19% | ₹7,761 Cr | 0.61% | ₹1,000 | Very High |
| Aditya Birla Sun Life Multi-Cap Fund | 14.63% | 13.99% | 14.19% | ₹7,030 Cr | 0.67% | ₹100 | Very High |
| Mahindra Manulife Multi Cap Fund | 19.04% | 17.09% | 14.19% | ₹6,926 Cr | 0.45% | ₹500 | Very High |
| HSBC Multi Cap Fund | 19.57% | NA | 14.19% | ₹5,914 Cr | 0.50% | ₹500 | Very High |
Note:
- AUM figures are as of 30 June 2026.
- Expense ratios and trailing returns are the latest available figures as of August 7 2026.
- NA indicates that the scheme has not completed five years.
- The common benchmark for these funds is the Nifty 500 Multicap 50:25:25 TRI. Its 5-year CAGR stood at 14.19% as of 30 June 2026.
Top 10 Multi Cap Mutual Funds in India
The numbers above make comparison easier. However, returns need to be read with costs, portfolio choices and the length of available history.
1. Nippon India Multi Cap Fund
Nippon India Multi Cap Fund leads the list with an AUM of ₹54,585 crore. Its Direct plan has generated 16.17% annually over three years and 19.51% over five years.
The fund charges 0.58% and carries a Very High risk rating. Both SIP and lump sum investments can start at ₹100, while the Nifty 500 Multicap 50:25:25 TRI is its benchmark.
Banking stocks feature prominently at the top of its portfolio. HDFC Bank, ICICI Bank and Axis Bank are its three largest holdings, followed by Infosys and Linde India.
A completed 5-year record is a useful strength here. Its five-year CAGR is also above the benchmark, although the large banking positions mean investors should check overlap with their existing portfolio.
2. Kotak Multicap Fund
Kotak Multicap Fund manages ₹28,074 crore and has returned 19.47% annually over three years. Its 0.42% expense ratio is the lowest among the 10 funds compared here.
The minimum SIP and lump sum are both ₹100. Risk remains Very High, and the scheme tracks its performance against the Nifty 500 Multicap 50:25:25 TRI.
Its largest holding is Maruti Suzuki at 5.13%. SBI, IndusInd Bank, Indus Towers and Radico Khaitan also feature among the leading positions.
The combination of a lower expense ratio and 19.47% 3-year CAGR stands out. The limitation is history: the fund began in September 2021, so a complete five-year return is not available yet.
3. SBI Multicap Fund
SBI Multicap Fund has ₹23,693 crore in assets. Its 3-year CAGR is 15.22%, while a 5-year return is unavailable because the scheme started in March 2022.
The Direct plan has a 0.68% expense ratio. SIPs start at ₹500 and the minimum initial lump sum investment is ₹5,000. Its Riskometer classification is Very High.
Adani Power is currently its largest holding at 4.89%. ICICI Bank, HDFC Bank, K.P.R. Mill and Kotak Bank follow.
There is another point worth noting. The current fund manager took charge only in June 2026, so most of the available 3-year record was generated before the present manager’s tenure.
4. HDFC Multi Cap Fund
HDFC Multi Cap Fund has an AUM of ₹20,217 crore. Its Direct plan has delivered a 14.81% annualised return over three years.
Costs are slightly higher than several peers at 0.70%. Investors can start both an SIP and lump sum with ₹100, while the fund carries a Very High risk rating.
HDFC Bank and ICICI Bank are its two largest positions. Axis Bank, Reliance Industries and Bharti Airtel are also among the top five holdings.
The small minimum investment is useful for accessibility. However, the fund started in December 2021 and therefore does not yet offer a full 5-year performance record.
5. ICICI Prudential Multicap Fund
ICICI Prudential Multicap Fund has generated 18.16% annually over three years and 16.29% over five years. Its AUM stands at ₹18,194 crore.
The expense ratio is 0.78%, the highest in this top-10 group. SIPs start at ₹100, although the minimum lump sum investment is ₹5,000. Risk is classified as Very High.
Its leading holdings differ from the bank-heavy portfolios seen in some peers. BSE, Vedanta Aluminium Metal and UltraTech Cement occupy the first three positions.
The fund’s 16.29% five-year CAGR is above the benchmark’s 14.19%. On the other hand, investors should weigh that performance against the higher expense ratio and portfolio turnover of 87%.
6. Axis Multicap Fund
Axis Multicap Fund has delivered a 21.63% 3-year CAGR. This is the highest 3-year return among the 10 funds in this AUM-based list.
Its AUM is ₹10,457 crore and the Direct plan expense ratio is 0.71%. Both SIP and lump sum investments can begin at ₹100.
HDFC Bank and ICICI Bank lead the portfolio, followed by Shriram Finance, Eternal and Larsen & Toubro. The fund’s Riskometer rating remains Very High.
The recent 3-year number is a strength when comparing current performance. Still, the fund was launched only in December 2021, so investors do not yet have a complete 5-year record to assess.
7. Quant Multi Cap Fund
Quant Multi Cap Fund has returned 11.20% annually over three years and 12.66% over five years. Its AUM is ₹7,761 crore.
The Direct plan charges 0.61%. A minimum ₹1,000 SIP is required, while the initial lump sum investment is ₹5,000. The fund carries a Very High Riskometer classification.
Its portfolio is more concentrated at the top. Aurobindo Pharma alone accounts for 8.66%, followed by Adani Power, ICICI Bank, Adani Enterprises and Adani Green Energy.
The fund has a long Direct-plan history dating back to 2013. However, both its 3-year and 5-year returns currently trail the corresponding category figures, while its five-year return is also below the benchmark.
8. Aditya Birla Sun Life Multi-Cap Fund
Aditya Birla Sun Life Multi-Cap Fund manages ₹7,030 crore. Its 3-year return is 14.63%, while the 5-year CAGR is around 14%.
The expense ratio is 0.67%. SIPs begin at ₹100 and a lump sum can start at ₹500, with the scheme classified as Very High risk.
ICICI Bank is its largest holding, followed by SBI and Larsen & Toubro. Indus Towers and Eternal complete its current top five.
The scheme has now crossed the five-year mark, giving investors a longer period to examine. Its 3-year performance, however, remains below the current Multi Cap category average.
9. Mahindra Manulife Multi Cap Fund
Mahindra Manulife Multi Cap Fund has delivered a 19.04% CAGR over three years and 17.09% over five years. The scheme manages ₹6,926 crore.
Its expense ratio is 0.45%, making it one of the lower-cost Direct plans on this list. SIPs start at ₹500 and lump sum investments at ₹1,000.
ICICI Bank, Neuland Laboratories and Larsen & Toubro are its top three holdings. Its five-year performance is also above the 14.19% benchmark return.
One figure deserves attention despite the stronger past returns. Portfolio turnover stands at 105%, indicating fairly frequent changes in the underlying holdings.
10. HSBC Multi Cap Fund
HSBC Multi Cap Fund completes the top 10 with an AUM of ₹5,914 crore. Its Direct plan has returned 19.57% annually over three years.
The expense ratio is 0.50%. Both the minimum SIP and minimum lump sum are higher than several peers at ₹500 and ₹5,000 respectively.
HDFC Bank, Federal Bank and ICICI Bank occupy its three largest positions. Reliance Industries and SBI also appear among the top five holdings.
The 3-year return is among the stronger numbers in this list. But the fund began only in January 2023, leaving investors without a five-year performance record for comparison.
How We Selected These Multi Cap Funds
The top 10 funds in the multi-cap category were shortlisted based on their latest available AUM.
However, a higher AUM does not necessarily indicate better future performance. Investors should consider returns, risk, costs, portfolio quality and suitability before selecting a fund.
For comparison, we used active Direct Growth plans and considered:
- 3-year and 5-year annualised returns
- Performance against the common benchmark
- Category-level performance
- Expense ratio
- Minimum SIP and lump sum
- Risk classification
- Portfolio holdings and turnover
- Availability of a longer performance record
Investors new to Mutual Funds may also want to understand NAV, expense ratios and fund categories before comparing individual schemes.
The wider category provides a useful baseline. Here are the latest multi-cap category returns across different periods:
| Period | Multi Cap Fund Category Average |
| 1 year | 7.97% |
| 3 years | 15.69% |
| 5 years | 13.81% |
These figures help put individual fund performance into context. For instance, a 16% 3-year CAGR is only slightly above the category return of 15.69%, while a 20% return shows a wider gap.
Multi Cap Funds vs Other Fund Categories
Multi-cap funds differ from other diversified equity categories mainly because their market-cap allocation is partly fixed.
| Fund category | Main portfolio rule | 3Y category return | 5Y category return |
| Multi Cap | At least 25% each in large, mid and small caps | 15.69% | 13.81% |
| Large Cap | At least 80% in large-cap stocks | 11.61% | 10.53% |
| Large & Mid Cap | At least 35% each in large and mid caps | 15.27% | 13.49% |
| Flexi Cap | At least 65% in equity, with flexible market-cap allocation | 13.17% | 11.86% |
| Mid Cap | At least 65% in mid-cap stocks | 18.51% | 16.16% |
| Small Cap | At least 65% in small-cap stocks | 17.40% | 15.81% |
Category returns are the latest trailing returns available as of August 7 2026.
The key distinction is with flexi-cap mutual funds. Flexi-cap managers can alter the large, mid and small-cap mix more freely, while multi-cap funds must retain meaningful exposure to all three.
Compared with large-cap mutual funds, multi-cap funds have much greater compulsory exposure to smaller companies. This can increase both return potential and volatility.
Mid-cap mutual funds and small-cap mutual funds have produced higher 3-year and 5-year category returns recently. That does not mean they will continue to lead, as category performance changes across market cycles.
Benefits and Risks of Multi Cap Mutual Funds
Multi-cap funds bring large, mid and small-cap companies into one portfolio. This provides diversification across company sizes, but the mandatory exposure to mid and small caps can also increase volatility.
Benefits
- Exposure across company sizes: Investors get access to large, mid and small-cap stocks through a single scheme.
- Built-in diversification: Performance is not dependent on one market-cap segment alone.
- Scope for active allocation: Fund managers can decide how to invest the remaining portfolio after meeting the minimum allocation requirements.
- Long-term growth exposure: Mid and small companies provide growth potential, while large caps add exposure to established businesses.
Risks
- High market risk: All 10 funds in this comparison currently carry a Very High Riskometer rating.
- Mid and small-cap volatility: At least 50% of the portfolio must remain invested across these two segments.
- Limited defensive flexibility: Fund managers cannot move the entire portfolio towards large caps when smaller companies fall sharply.
- Fund-specific risk: Stock selection, sector exposure and portfolio concentration can cause returns to vary between schemes.
These risks can also be seen in the category’s historical volatility measures. The table below provides additional context on how multi-cap returns have behaved over three and five years.
| Multi-cap category risk measure | 3 years | 5 years | What it measures |
| Standard deviation | 16.19 | 22.20 | Extent of fluctuations in returns |
| Sharpe ratio | 0.58 | 0.57 | Return generated relative to overall volatility |
| Sortino ratio | 0.88 | 0.95 | Return generated relative to downside volatility |
Risk measures are as of 31 July 2026.
The 5-year standard deviation of 22.20 indicates wider return fluctuations over the longer period. This is relevant for a category that must maintain meaningful exposure to mid and small-cap stocks.
The 5-year Sortino ratio of 0.95 provides another perspective by focusing specifically on downside volatility. These ratios are useful for assessing category-level risk, but should be considered alongside returns, portfolio allocation and investment horizon.
Who Should Consider and Avoid Multi Cap Funds?
Multi-cap funds may suit investors looking for equity exposure across different company sizes within one scheme.
You may consider multi-cap funds if you:
- Have at least a 5-year investment horizon
- Can tolerate sharp short-term falls
- Want exposure to large, mid and small-cap shares
- Are investing towards a long-term financial goal
- Do not need predictable yearly returns
A five-year horizon is a starting point, not a guarantee. Longer holding periods can give equity investments more time to move through different market phases.
You may want to avoid multi-cap funds if you:
- Need the money within a few years
- Prefer low volatility or capital stability
- Already have substantial mid and small-cap exposure
- Are uncomfortable seeing the portfolio fall sharply
- Are choosing solely because of recent high returns
The last point matters. The current 3-year returns in this list range from 11.20% to 21.63%, despite all 10 funds belonging to the same category.
How to Choose a Multi Cap Mutual Fund
Do not choose a multi-cap fund from returns alone. Check how those returns were generated and whether the scheme fits your portfolio.
- Returns: Compare 3-year and 5-year CAGR with both the category and benchmark. One strong year tells little about consistency.
- Risk: Look at the Riskometer, volatility and downside measures. Higher returns can come with greater fluctuations.
- Expense ratio: Compare costs between Direct plans. Lower expenses leave less of the portfolio’s return absorbed by recurring fund costs.
- Fund manager: Check current tenure. If the manager changed recently, older returns may not reflect the present investment team.
- Portfolio: Examine the largest stocks, sectors and market-cap allocation. This also helps identify overlap with other funds you hold.
- Turnover: A high number indicates more frequent portfolio changes. It should be understood in the context of the manager’s strategy.
- Benchmark: Compare performance with the Nifty 500 Multicap 50:25:25 TRI over comparable periods.
SIP vs Lump Sum for Multi Cap Funds
SIP and lump sum investments buy units of the same fund. The difference lies in how and when the money enters the market.
| Factor | SIP | Lump sum |
| Investment | Smaller amount invested regularly | Larger amount invested at once |
| Entry point | Spread across several dates | Entire investment made at one market level |
| Cost averaging | Purchase price varies over time | No automatic averaging |
| Cash flow | Can suit regular monthly income | Can suit money already available |
| Timing exposure | Investment is staggered | Full amount faces market movement immediately |
| Discipline | Can automate investing | Requires a one-time decision |
An SIP can make regular investing easier and spreads purchases across different market levels. It does not remove equity risk or guarantee better returns.
Lump sum investing puts the available money to work immediately. It may suit investors with an existing corpus and a sufficiently long horizon, but the entry point has a greater immediate effect.
Direct vs Regular Multi Cap Funds
Direct and regular plans belong to the same mutual fund scheme. Their portfolios and fund managers are the same, but their costs differ.
| Factor | Direct Plan | Regular Plan |
| Investment route | Directly with the fund or an eligible platform | Through a distributor |
| Underlying portfolio | Same | Same |
| Fund manager | Same | Same |
| Expense ratio | Lower | Higher |
| Distributor commission | Not included | Included in distribution costs |
| Guidance | Investor manages selection independently | Distributor may provide assistance |
Direct plans have lower expense ratios because distributor commissions are not included. This creates a separate NAV and can result in a return difference over time.
That does not make a Direct plan suitable for everyone. Investors who need help selecting and managing funds may prefer professional assistance, after considering its cost.
Taxation of Multi Cap Mutual Funds
Multi-cap funds are equity-oriented mutual funds. Their capital gains are therefore taxed under the rules applicable to equity-oriented schemes.
| Holding Period | Tax Treatment |
| Up to 12 months | Short-term capital gains taxed at 20% |
| More than 12 months | Long-term capital gains exceeding ₹1.25 lakh in a financial year taxed at 12.5% |
| LTCG up to ₹1.25 lakh | Exempt, subject to applicable conditions |
| IDCW income | Taxed in the investor’s hands at the applicable income-tax rate |
The ₹1.25 lakh LTCG exemption applies to aggregate eligible gains during the financial year, not separately to each mutual fund. The 12.5% LTCG rate applies without indexation.
Tax can change the amount an investor finally retains after redemption. It should therefore be considered along with holding period, returns and investment goals rather than only at the time of withdrawal.
FAQs
Among the 10 funds shortlisted in this article, Axis Multicap Fund, HSBC Multi Cap Fund, Kotak Multicap Fund, Mahindra Manulife Multi Cap Fund and ICICI Prudential Multicap Fund are among the stronger performers based on their 3-year returns as of August 7 2026.
Performance can change with market conditions, so returns should be compared with risk, costs and the benchmark before investing.
Multi-cap funds can be considered for long-term goals if you have a 5-year or longer horizon and can tolerate equity-market volatility.
The right time depends more on your goals, asset allocation and risk appetite than on short-term market movements.
There is no single best multi-cap fund for every investor. Among the top 10 funds by AUM as of August 7 2026, Axis Multicap Fund has one of the highest 3-year returns, while other schemes differ on costs, portfolio composition and longer-term performance.
Compare the fund’s 3-year and 5-year returns, benchmark performance, expense ratio, risk, fund manager and portfolio. Also check whether the scheme fits your investment horizon and existing portfolio.
Multi-cap funds may suit investors seeking exposure to large, mid and small-cap stocks through one scheme. Investors should preferably have a long-term horizon and be comfortable with high market risk.
As of August 2026, Groww Multicap Fund Direct Plan has delivered around 19.51% over one year, the highest among the multi-cap schemes shown in the latest category data.
No. Multi-cap funds are equity investments and can experience significant short-term losses. They also maintain at least 25% each in large, mid and small-cap stocks, which exposes investors to different levels of market volatility.
There is no universally ideal entry point. Investors with a long horizon can consider investing based on their financial goals and risk capacity rather than trying to predict short-term market movements.
They serve different purposes. Multi-cap funds offer market-linked returns with higher risk, while fixed deposits generally provide more predictable returns and greater capital stability.
Multi-cap funds may suit long-term growth goals, while FDs may be more appropriate when stability and predictable returns are the priority.
