Multi Cap Mutual Funds

Looking to diversify your portfolio with a balanced mix of growth and stability? Multi cap mutual funds might be exactly what you need. These funds invest in companies across all market capitalizations; large-cap for stability, mid-cap for growth, and small-cap for high-return potential. This dynamic allocation helps reduce risk while tapping into multiple growth opportunities within the market.

If you're searching for what is Multi Cap mutual funds or trying to understand the Multi Cap mutual funds meaning, here’s the simple answer: they are flexible equity funds that give fund managers the freedom to shift allocations based on market trends and economic conditions. That means your investment has the potential to grow with the market while staying diversified.

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List of Multi Cap Mutual Funds

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logo Nippon India Multi Cap Fund - Direct Growth

4.26%

Fund Size (Cr.) - 43,483

logo Kotak Multicap Fund - Direct Growth

2.58%

Fund Size (Cr.) - 17,943

logo HDFC Multi Cap Fund - Direct Growth

2.34%

Fund Size (Cr.) - 17,620

logo AXIS Multicap Fund - Direct Growth

8.06%

Fund Size (Cr.) - 7,782

logo Mahindra Manulife Multi Cap Fund - Direct Growth

5.18%

Fund Size (Cr.) - 5,408

logo ITI Multi Cap Fund - Direct Growth

0.29%

Fund Size (Cr.) - 1,248

logo ICICI Pru Multicap Fund - Direct Growth

6.50%

Fund Size (Cr.) - 15,095

logo Invesco India Multicap Fund - Direct Growth

6.80%

Fund Size (Cr.) - 4,003

logo Bandhan Multi Cap Fund - Direct Growth

4.53%

Fund Size (Cr.) - 2,617

logo Baroda BNP Paribas Multi Cap Fund-Dir Growth

2.94%

Fund Size (Cr.) - 2,840

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Why Invest in Multi Cap Mutual Funds?

Multi Cap Mutual Funds offer a smart way to diversify your equity investments. By allocating assets across large-cap, mid-cap, and small-cap stocks, they help balance risk and return. This flexibility makes them suitable for different market conditions and long-term goals.

Key reasons to invest in Multi Cap mutual funds:

  1. 1. Exposure to all segments of the market
  2. 2. Balanced risk with growth opportunities
  3. 3. SEBI-mandated 25% minimum in each cap category
  4. 4. Actively managed for changing market trends
  5. 5. Ideal for wealth creation over the long term
     

Popular Multi Cap Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 43,483
  • 3Y Return
  • 31.98%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 17,943
  • 3Y Return
  • 31.81%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 17,620
  • 3Y Return
  • 30.00%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 7,782
  • 3Y Return
  • 29.59%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 5,408
  • 3Y Return
  • 28.33%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,248
  • 3Y Return
  • 28.28%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 15,095
  • 3Y Return
  • 27.67%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 4,003
  • 3Y Return
  • 27.07%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 2,617
  • 3Y Return
  • 26.40%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 2,840
  • 3Y Return
  • 25.87%

FAQs

Before investing, assess the fund’s past performance, fund manager expertise, expense ratio, asset allocation strategy, and risk level. Also consider your investment horizon, financial goals, and the fund’s portfolio diversification across large, mid, and small-cap stocks to ensure it aligns with your overall investment strategy.

Some of the best Multi Cap funds for 2025 include Nippon India Multi Cap Fund, ICICI Prudential Multicap Fund, and Mahindra Manulife Multi Cap Fund. These funds have shown strong returns and consistent management, making them ideal for long-term SIP and lumpsum investments in a balanced portfolio.

Multi Cap funds work best when held for a long-term horizon of 5 years or more. This allows your investment to weather market volatility and benefit from the compounding effect, especially due to the fund’s exposure to various market capitalizations and sectors.

The amount depends on your financial goals and risk appetite. Start with a SIP as low as ₹500 per month and gradually increase. Ensure it fits into your asset allocation strategy without overexposing you to equity if you have short-term goals or low risk tolerance.

Yes, Multi Cap funds are ideal for beginners. They offer diversification across market segments, reducing risk compared to mid or small-cap focused funds. With professional fund management and flexible asset allocation, beginners can enjoy balanced growth and learn about equity investing gradually.
 

No, Multi Cap funds are not tax-free. Returns are subject to capital gains tax. Short-term gains (within 12 months) are taxed at 20%, while long-term gains (after 12 months) above ₹1.25 lakh are taxed at 12.5% without indexation benefit, as per the current tax laws.

Multi Cap funds are managed by experienced fund managers appointed by Asset Management Companies (AMCs). These professionals actively decide on stock selection, allocation across market caps, and timing, based on market trends and the fund’s investment strategy to maximize investor returns.

Yes, Multi Cap funds are well-suited for long-term returns. Their flexibility to invest across large, mid, and small-cap stocks allows them to capture growth opportunities throughout market cycles, making them ideal for wealth creation over 5–10 years or more.

No, they are different. Blue chip stocks refer to large, established companies with stable performance. Multi Cap funds invest in a mix of large, mid, and small-cap stocks, offering broader diversification and potentially higher returns, but also come with relatively higher risk than pure blue chip investments.

While no mutual fund can guarantee returns, Multi Cap funds have the potential to deliver consistent performance over the long term due to their diversified exposure. Their ability to shift allocations based on market dynamics helps manage risk and capture opportunities across different sectors and capitalizations.

Generally, 1–2 Multi Cap funds are sufficient for most investors. Adding more may lead to portfolio overlap and reduced effectiveness. Choose funds with different strategies or fund houses to maintain diversification without diluting returns or increasing monitoring complexity.

Multi Cap funds don’t offer specific tax deductions, but long-term gains up to ₹1 lakh in a financial year are tax-free. Gains above that are taxed at 10%. Short-term gains are taxed at 15%. Holding the fund for longer reduces your tax liability.

Yes, Multi Cap funds are generally safer than pure mid or small-cap funds. They have large-cap exposure, which adds stability, while still capturing growth through mid and small-cap stocks. This blend lowers volatility and offers a more balanced risk-return profile.

To choose the best fund, compare past performance, fund manager experience, portfolio composition, consistency of returns, and the fund’s expense ratio. Also look at the AMC’s reputation and investment philosophy. Select funds that align with your goals and risk appetite.

Monitor its returns relative to its benchmark and peer funds over the same time frame. Check consistency, volatility, and portfolio quality. Also consider expense ratio and how the fund performs in both bull and bear markets to assess overall fund health and manager skill.

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