Best Multi Cap Mutual Funds – Multi Cap Mutual Funds

The below table shows a list Of the Best multi-cap funds based on AUM, NAV and minimum SIP.

Introduction to Multi Cap Mutual Funds in India

Nippon India Multi Cap Fund

Nippon India Multi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Nippon India Multi Cap Fund as a Multi Cap fund, manages assets valued at ₹37150.98 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 29.23%. This fund has an exit load of 1% and an expense ratio of 0.74%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  97.95%, No Debt and Other at 2.05%.

SBI Multicap Fund

SBI Multicap Fund Direct-Growth is a multi-cap mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 2 years and 7 months, having been launched on 14/02/2022.

SBI Multicap Fund as a Multi Cap fund, manages assets valued at ₹18053.07 crore. Over the past 1 year, it has achieved a Compound Annual Growth Rate (CAGR) of 40.15%. This fund has an exit load of 1% and an expense ratio of 0.88%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  94.86%, Debt at 0.55% and Other at 4.59%.

HDFC Multi Cap Fund

HDFC Multi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 2 years and 9 months, having been launched on 23/11/2021.

HDFC Multi Cap Fund as a Multi Cap fund, manages assets valued at ₹17185.76 crore. Over the past 1 year, it has achieved a Compound Annual Growth Rate (CAGR) of 44.88%. This fund has an exit load of 1% and an expense ratio of 0.55%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  96.83%, No Debt and Other at 3.17%.

Kotak Multicap Fund

Kotak Multicap Fund Direct – Growth is a multi-cap mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 3 years, having been launched on 08/09/2021. 

Kotak Multicap Fund as a Multi Cap fund, manages assets valued at ₹14541.21 crore. Over the past 1 year, it has achieved a Compound Annual Growth Rate (CAGR) of 52.26%. This fund has an exit load of 1% and an expense ratio of 0.38%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  96.74%, Debt at 0.49% and Other at 2.77%.

ICICI Pru Multicap Fund

ICICI Prudential Multicap Fund Direct Plan-Growth is a multi-cap mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

ICICI Pru Multicap Fund as a Multi Cap fund, manages assets valued at ₹14279.35 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 25.56%. This fund has an exit load of 1% and an expense ratio of 0.94%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  89.35%, Debt at 1.55% and Other at 9.09%.

Quant Active Fund

Quant Active Fund Direct-Growth is a multi-cap mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Quant Active Fund as a Multi Cap fund, manages assets valued at ₹11249.35 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 35.32%. This fund has an exit load of 1% and an expense ratio of 0.58%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  89.36%, Debt at 2.2% and Other at 8.43%.

Axis Multicap Fund

Axis Multicap Fund Direct-Growth is a multi-cap mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 2 years and 9 months, having been launched on 26/11/2021.

Axis Multicap Fund as a Multi Cap fund, manages assets valued at ₹6290.99 crore. Over the past 1 year, it has achieved a Compound Annual Growth Rate (CAGR) of 53.38%. This fund has an exit load of 1% and an expense ratio of 0.64%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  99.24%, Debt at 0.45% and Other at 0.31%.

Aditya Birla SL Multi-Cap Fund

Aditya Birla Sun Life Multi-Cap Fund Direct-Growth is a multi-cap mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 3 years and 5 months, having been launched on 19/04/2021.

Aditya Birla SL Multi-Cap Fund as a Multi Cap fund, manages assets valued at ₹6197.85 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 20.08%. This fund has an exit load of 1% and an expense ratio of 0.76%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  98.1%, No Debt and Other at 1.9%.

Mahindra Manulife Multi Cap Fund

Mahindra Manulife Multi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from Mahindra Manulife Mutual Fund. This fund has been in existence for 7 years and 5 months, having been launched on 20/04/2017.

Mahindra Manulife Multi Cap Fund as a Multi Cap fund, manages assets valued at ₹4686.16 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 31.12%. This fund has an exit load of 1% and an expense ratio of 0.4%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  97.82%, No Debt and Other at 2.18%.

Franklin India Multi Cap Fund

Franklin India Multi Cap Fund is a Multi Cap mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 1 month, having been launched on 29/07/2024.

Franklin India Multi Cap Fund as a Multi Cap fund, manages assets valued at ₹4347.69 crore. This fund has an exit load of 1% and an expense ratio of 0.24%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  89.41%, Debt at 0.57%, and Other at 10.02%.

What Are Multi Cap Mutual Funds?

Multi-cap mutual funds invest across companies of different market capitalizations—large-cap, mid-cap, and small-cap—offering diversified exposure. This approach balances risk and reward by capitalizing on the growth potential of smaller firms while ensuring stability through larger companies.

These funds provide flexibility to fund managers to shift allocations based on market conditions, allowing for dynamic investment strategies. This helps in seizing opportunities across various market segments, offering potentially better returns than single-cap-focused funds during favourable conditions.

However, multi-cap funds also carry higher risk due to exposure to volatile mid-and small-cap stocks. Investors seeking a mix of stability and growth may consider these funds for long-term wealth creation.

Features of the Best Multi Cap Mutual Funds

The main features of the best multi-cap mutual funds include a diverse portfolio, strong historical performance, low expense ratios and effective risk management strategies. These characteristics ensure that investors can benefit from balanced growth and reduced volatility over time.

• Diverse Portfolio: Top multi-cap funds maintain a well-diversified portfolio across large, mid, and small-cap stocks. This diversification helps mitigate risk by spreading investments across various sectors, reducing the impact of underperforming stocks on overall fund performance.
• Strong Historical Performance: The best multi-cap funds demonstrate consistent performance across various market cycles. A strong historical track record indicates effective fund management and the ability to navigate market fluctuations, providing investors with confidence in the fund’s future growth potential.
• Low Expense Ratios: Quality multi-cap funds typically have low expense ratios, which contribute to higher net returns for investors. Lower fees allow more of the investment gains to remain in the investor’s portfolio, enhancing overall profitability without compromising on management quality.
• Effective Risk Management Strategies: Leading multi-cap funds employ robust risk management techniques to minimize potential losses. This includes regular portfolio reviews and adjustments based on market conditions, ensuring that the fund adapts effectively to changes and maintains a balanced risk-reward profile for investors.

Top Multi Cap Mutual Funds In India Based on Expense Ratio

The table below shows the Best-performing multi-cap fund Based on the highest to lowest expense ratio.

Best Multi Cap Mutual Funds To Invest In Based on 3Y CAGR

The table below shows the Best Multi Cap Fund Based on the Highest 3Y CAGR.

Multi Cap Mutual Funds List Based on Exit Load 

The table below shows the Best Performing multi-cap fund In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Multi Cap Mutual Funds Returns

The table below shows Multi Cap Fund Returns Based on 1Y return

Historical Performance of Multi Cap Mutual Funds

The table below shows the Historical Performance Of Multi Cap Fund based on 5Y return.

Factors to Consider When Investing in Multi-Cap Mutual Funds

The main factors to consider when investing in multi-cap mutual funds include the fund’s performance history, expense ratio, risk tolerance and the manager’s expertise. Evaluating these elements helps ensure that the investment aligns with your financial goals and preferences.

• Fund Performance History: Reviewing a fund’s past performance over different market cycles provides insights into its reliability and potential returns. Consistent performance relative to benchmarks indicates effective management, while significant underperformance may raise concerns about the fund’s viability.
• Expense Ratio: The expense ratio affects overall returns, as higher fees can erode profits over time. Comparing expense ratios across similar funds is crucial; choosing a fund with a lower expense ratio can enhance net gains without sacrificing quality or performance.
• Risk Tolerance: Understanding your risk tolerance is vital before investing in multi-cap funds. Assess whether you can handle market volatility and fluctuations in returns, ensuring that your investment choices align with your comfort level regarding risk and potential losses.
• Manager’s Expertise: The fund manager’s experience and track record are critical to a multi-cap fund’s success. Researching their investment philosophy and past decisions can provide confidence in their ability to navigate market changes and optimize returns effectively for the fund.

How to Invest in Top Multi Cap Mutual Funds?

To invest in top multi-cap mutual funds, start by researching funds with strong past performance, consistent returns, and reputable fund managers. Compare expense ratios and risk profiles to ensure the chosen fund aligns with your financial goals and risk tolerance.

Next, open an account with Alice Blue. Complete the KYC process, including submitting identity, address and PAN card details, to begin your investment journey seamlessly.

Finally, decide on a lump sum or systematic investment plan (SIP) approach. SIPs allow regular, smaller investments, reducing market timing risks and fostering disciplined investing for long-term wealth creation through multi-cap funds.

Impact of Market Trends on Top Multi-Cap Mutual Funds

Market trends significantly impact top multi-cap mutual funds, as they invest across large, mid, and small-cap stocks. Bull markets can boost returns, especially from mid-and small-cap stocks, while bearish trends may increase volatility, affecting overall performance.

Fund managers of multi-cap funds adjust allocations based on market trends, capitalizing on opportunities in various sectors. A well-managed fund can navigate market cycles by shifting between stable large-caps and growth-oriented small- or mid-caps, balancing risk and reward.

How Multi Cap Mutual Funds Perform in Volatile Markets?

In volatile markets, multi-cap mutual funds can experience fluctuations due to their exposure to mid-and small-cap stocks, which tend to be more sensitive to market swings. However, large-cap holdings provide stability, reducing overall risk during uncertain times.

Fund managers in multi-cap funds can adjust the portfolio by increasing large-cap exposure to mitigate risks. This flexibility allows the fund to balance risk and reward, potentially outperforming single-cap funds by leveraging opportunities across market segments, even during volatility.

Advantages of Investing in Multi Cap Mutual Funds

The main advantages of investing in multi-cap mutual funds include diversification, growth potential, flexibility in asset allocation, and professional management. These factors can enhance returns while managing risk, making them an attractive option for a variety of investors.

• Diversification: Multi-cap funds invest across large, mid and small-cap stocks, providing broad market exposure. This diversification helps reduce overall portfolio risk, as poor performance in one segment may be offset by stronger performance in others, leading to more stable returns.
• Growth Potential: By investing in mid-and small-cap stocks, multi-cap funds capture high-growth opportunities that larger companies may not offer. This potential for higher returns can significantly benefit long-term investors, particularly during favourable market conditions, enhancing overall portfolio growth.
• Flexibility in Asset Allocation: Fund managers can adjust the allocation between different capitalizations based on market trends and economic conditions. This flexibility allows for a responsive investment strategy, enabling the fund to capitalize on emerging opportunities while managing risk effectively.
• Professional Management: Investing in multi-cap funds provides access to experienced fund managers who analyze market trends and select stocks strategically. Their expertise helps optimize performance, making it easier for investors to benefit from well-researched investment decisions without needing to manage individual stocks.

Risks of Investing in Multi-Cap Mutual Funds

The main risks of investing in multi-cap mutual funds include market volatility, exposure to underperforming stocks, fluctuating returns and manager risk. Understanding these factors can help investors make informed decisions and manage expectations.

• Market Volatility: Multi-cap funds are subject to market fluctuations, as they invest across various capitalizations. During economic downturns, smaller stocks can experience significant declines, impacting overall fund performance and increasing the potential for short-term losses.
• Exposure to Underperforming Stocks: Investing in a diverse range of companies may lead to exposure to underperformers. If the fund holds stocks that fail to meet growth expectations, it can negatively affect overall returns, impacting investor confidence and portfolio value.
• Fluctuating Returns: Returns from multi-cap mutual funds can vary significantly due to market conditions and stock performance. Investors may experience inconsistent returns, which can be challenging for those seeking stable, predictable growth over time, leading to potential dissatisfaction.
• Manager Risk: The performance of multi-cap funds heavily relies on the fund manager’s expertise. Poor decision-making or lack of timely adjustments in response to market changes can lead to suboptimal performance, emphasizing the importance of choosing a skilled and experienced fund manager.

Contribution of Multi Cap Mutual Funds to Portfolio Diversification

Multi-cap mutual funds contribute to portfolio diversification by investing across large, mid, and small-cap stocks. This broad exposure reduces risk, as performance is not tied to a single market segment, balancing stability and growth within a portfolio.

Their dynamic investment strategy allows fund managers to shift allocations based on market conditions, enhancing the diversification effect. By spreading investments across different capitalizations, multi-cap funds mitigate sector-specific risks, making them a valuable tool for long-term wealth building.

Who Should Invest in Multi Cap Mutual Funds?

Investors seeking a balanced mix of stability and growth should consider multi-cap mutual funds. These funds suit those with moderate risk tolerance, as they offer exposure to large-cap stability while capturing the growth potential of mid-and small-cap stocks.

Multi-cap funds are ideal for long-term investors aiming for wealth creation through market cycles. Their diversified nature makes them suitable for individuals who want flexibility in their investment, allowing fund managers to adjust based on evolving market conditions.

Impact of Fund Manager Expertise on Multi Cap Mutual Funds Performance

The expertise of a fund manager plays a crucial role in multi-cap mutual funds’ performance. A skilled manager can effectively allocate assets between large, mid and small-cap stocks, optimizing returns while minimizing risk based on market conditions and trends.

Fund managers’ experience and insights allow them to navigate market volatility, making informed decisions on sector allocation and stock selection. Their ability to identify growth opportunities and adjust strategies in response to market dynamics directly impacts the fund’s long-term success.

How Much Money Should I Invest In Multi-Cap Mutual Funds?

The amount to invest in multi-cap mutual funds depends on your financial goals, risk tolerance, and investment horizon. Assess your portfolio’s current composition and allocate funds to multi-cap investments based on the desired level of diversification and growth.

For beginners or moderate-risk investors, starting with a systematic investment plan (SIP) allows gradual exposure, reducing market timing risks. Larger lump sum investments may suit those with a higher risk appetite and long-term goals, but it’s essential to ensure alignment with your overall financial plan.

Taxation On Multi Cap Mutual Funds

Multi-cap mutual funds are subject to equity mutual fund taxation. If held for less than one year, short-term capital gains (STCG) are taxed at 15%. Long-term capital gains (LTCG) on holdings over one year are taxed at 10% on gains exceeding ₹1 lakh annually.

Additionally, dividends received from multi-cap funds are taxable according to your income slab, as they are included in your total income. Investors should consider these tax implications when planning their investment strategy for optimal after-tax returns.

FAQs – Multi Cap Mutual Funds List

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.