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Multi Cap Mutual Funds
- Average Return 30.32%
- No of Funds 17
What is Multi Cap Mutual Fund
Multi cap equity funds invest in companies of all sizes and across sectors. Unlike large or mid cap funds, they can decide how money gets allocated between big, mid-sized, and small companies. This flexibility also allows them to make changes in the portfolio as market conditions change.
Advantages of Multi Cap Funds
- Exposure to all key sectors driving the Indian economy forward
- Ideal for an investment horizon of 5+ year
- Eliminates the need for buying different funds for comprehensive market coverage
Top schemes of Multi Cap Mutual Funds sorted by last 5 year returns
17 funds
ShowReturns for
via
#1 of 7
Fund Size
₹5,349 Crs
Return (p.a)
+ 28.53% + 101.78% + 22.32% + 225.23% + 12.69% + 12.69% + 23.49% + 40.64% + 8.01% + 8.01% + 16.47% + 17.59% + 11.57% + 11.57% + 3.70% + 3.70%
ETM Rank
#1 of 7
#7 of 7
Fund Size
₹18,974 Crs
Return (p.a)
+ 25.66% + 88.44% + 17.69% + 153.32% + 17.37% + 17.37% + 31.33% + 56.31% + 10.76% + 10.76% + 28.69% + 31.28% + 20.40% + 20.40% + 5.05% + 5.05%
ETM Rank
#7 of 7
Fund Size
₹1,988 Crs
Return (p.a)
+ 24.49% + 83.22% N.A. N.A. + 15.38% + 15.38% + 23.34% + 40.34% + 9.89% + 9.89% + 19.10% + 20.49% + 16.42% + 16.42% + 3.80% + 3.80%
ETM Rank
#2 of 7
Min SIP
₹ 5,000
5 Yrs Return
+ 20.1 % p.a. + 17.69 % p.a. + 36.85 % + 15.49 % p.a. + 13.41 % p.a. + 37.4 % + 20.84 % p.a. + 33.54 %
Fund Size
₹8,422 Crs
Return (p.a)
+ 19.80% + 63.62% + 16.00% + 131.21% + 12.75% + 12.75% + 21.27% + 36.38% + 7.52% + 7.52% + 18.98% + 20.36% + 14.81% + 14.81% + 2.72% + 2.72%
ETM Rank
#5 of 7
#3 of 7
Fund Size
₹2,695 Crs
Return (p.a)
+ 19.62% + 62.89% + 16.61% + 138.95% + 12.42% + 12.42% + 18.94% + 32.03% + 7.31% + 7.31% + 15.97% + 17.04% + 13.67% + 13.67% + 2.42% + 2.42%
ETM Rank
#3 of 7
#6 of 7
Fund Size
₹2,068 Crs
Return (p.a)
+ 18.21% + 57.41% + 15.51% + 125.20% + 11.49% + 11.49% + 17.63% + 29.62% + 7.07% + 7.07% + 13.68% + 14.54% + 11.44% + 11.44% + 2.93% + 2.93%
ETM Rank
#6 of 7
Fund Size
₹4,309 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 13.11% + 13.11% N.A. N.A. + 7.64% + 7.64% + 16.64% + 17.77% + 14.24% + 14.24% + 3.44% + 3.44%
ETM Rank
Unranked
Unranked
Fund Size
₹4,371 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 11.93% + 11.93% N.A. N.A. + 6.28% + 6.28% N.A. N.A. + 13.26% + 13.26% + 1.50% + 1.50%
ETM Rank
Unranked
Unranked
Fund Size
₹1,460 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 10.96% + 10.96% N.A. N.A. + 6.49% + 6.49% N.A. N.A. + 13.21% + 13.21% + 1.98% + 1.98%
ETM Rank
Unranked
Unranked
Fund Size
₹260 Crs
Return (p.a)
N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A. + 7.46% + 7.46% N.A. N.A.N.A. N.A. + 3.28% + 3.28%
ETM Rank
Unranked
Unranked
Fund Size
NA
Return (p.a)
N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.
ETM Rank
Unranked
Unranked
Fund Size
₹7,676 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 15.44% + 15.44% N.A. N.A. + 9.36% + 9.36% N.A. N.A. + 19.06% + 19.06% + 3.94% + 3.94%
ETM Rank
Unranked
Unranked
Fund Size
₹5,585 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 15.14% + 15.14% N.A. N.A. + 9.58% + 9.58% N.A. N.A. + 17.28% + 17.28% + 2.95% + 2.95%
ETM Rank
Unranked
Unranked
Fund Size
₹595 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 12.12% + 12.12% N.A. N.A. + 6.93% + 6.93% N.A. N.A.N.A. N.A. + 2.36% + 2.36%
ETM Rank
Unranked
Unranked
Fund Size
₹12,888 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 10.22% + 10.22% N.A. N.A. + 5.49% + 5.49% N.A. N.A. + 9.92% + 9.92% + 2.01% + 2.01%
ETM Rank
Unranked
Show all funds
Multi Cap Funds Returns Calculator
See what your investment would have yielded in
Invested ₹ 6 Lakh
Profit ₹ 3.33 Lakh
₹ 9.33 Lakh
This fund has generated an XIRR of 28.53% over the past 5 Years
SIP Calculator
Mutual Fund Calculator
Lumpsum CalculatorHow do Multi-Cap Funds Work?
Every equity mutual fund invests the money gathered by all the investors in the stocks of companies.
According to regulations, mutual funds need to be specific in their investment approach. For example, a large cap fund can only invest in the stocks of the top 100 companies based on market capitalization. Similarly, small cap funds can invest in companies that are ranked below 250, and so on.
However, multi cap is the only category that doesn't have a defined structure by regulation on which size and sector of companies it can invest. And hence, these funds invest in large cap, mid cap, and small cap stocks. Now the proportion of these stocks could vary. It depends on the fund manager. They look at the market conditions and accordingly adjust the proportion of large cap, mid cap, and small cap stocks in the portfolio of a multi cap mutual fund.
When the economy is expanding, the fund manager can go for a higher exposure in mid cap and small cap stocks to take advantage of their fast growth. On the other hand, when the economy is in a slowdown, they might take a higher exposure in large cap stocks.
Who Should Invest in multi Cap Funds?
- First Time Investors: multi cap funds due to their diversified portfolio are ideal for first-time equity investors as it keeps the risk in control. Also, since these investors might not be aware of the risks that come with investing in companies of a specific size, a multi cap fund is the best bet for them
- Investors in a dilemma: A lot of investors get confused about whether they should go for funds that invest in big companies for their relative stability or go for mid and small caps, which can give high growth but come with risk. multi cap funds solve that problem.
- Investors with a Long Term Investment Horizon: While investing in any equity funds, the investment horizon should be a long one. So if you are an investor who has a long-term financial goal in mind like early retirement, children's education, building a house, etc., investment in a multi cap fund can help fulfill your goals. An investment horizon of more than 5 years is required while investing in these funds. A long horizon acts as a cushion against the volatility of equity markets and also helps you reap the benefits of compounding.
- Investors who want exposure to mid and small caps without taking too much risk: Some investors don't want to miss the growth opportunities that mid cap and small cap funds offer, but they also don't want to take the risk or are not comfortable with the volatility they might see if they invest in fund investing only in small or mid caps
Taxation on multi Cap Funds
It's the post-tax returns that matter. To determine that, you should be familiar with how multi cap funds are taxed. The capital gains made as a result of selling your multi cap fund are taxed depending on how long the investment was held by you.
- Short Term Capital Gain Tax (STCG): If you sell your investments within 1 year, the gains are classified as Short Term Capital Gain (STCG), and you need to pay 15% tax on them.
- Long Term Capital Gain Tax (LTCG): Whereas any multi cap investment held for more than one year, the gains are classified as Long Term Capital Gain (LTCG). Gains of up to 1 lakh in a financial year are tax free. Beyond 1 lakh, the gains are taxed at a rate of 10%.
How to invest in Multi Cap Funds?
It is quite easy to invest in Multi Cap mutual funds on ET Money. Here are the steps that you have to follow.
- Register online on ET Money app or website
- Head to Mutual Funds sections and choose the Multi Cap fund you want to invest in.
- Click on invest and choose the amount and mode of investment (SIP or Lumpsum)
- Provide your KYC details (Pan number, Bank details) and complete your investment.
Frequently Asked Questions
Which are the best Multi Cap Mutual Funds to invest in 2023?
These are top 5 Multi Cap funds you can invest in 2023
| Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
|---|---|---|---|---|
| Quant Active Fund | Equity | # 5 of 9 | 23.43 % p.a. | |
| Nippon India Multi Cap Fund | Equity | # 1 of 9 | 17.74 % p.a. | |
| Mahindra Manulife Multi Cap Fund | Equity | # 2 of 9 | 19.43 % p.a. | |
| ICICI Prudential Multicap Fund | Equity | # 3 of 9 | 14.22 % p.a. | |
| Invesco India Multicap Fund | Equity | # 4 of 9 | 13.64 % p.a. |
How long should I stay invested in Multi Cap Mutual Funds?
Since Multi Cap Funds are equity funds i.e. they invest in stocks of companies, you need to stay invested for at least 5 years.
Where do Multi Cap Mutual Funds invest?
Multi Cap Funds have to invest at least 65% of their money in stocks. That is the long regulation they need to follow when it comes to how and where they can invest. This means they can make a portfolio of any mix of sectors and company sizes. This mix is decided by the fund manager, and they also keep changing it depending on the market conditions.
Are Multi Cap Mutual Funds high risk?
Multi Cap Mutual Funds invest in equities, so in a short term, they can be volatile. However, over a long-term, the risk comes down substantially.
What kind of returns can i earn from Multi Cap ?
Multi Cap Funds have on an average delivered 16.94% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 30.32% and 20.14% p.a.
Should i invest in Multi Cap Mutual Funds?
Flexi Cap Funds have a go-anywhere approach. This approach has two benefits. One, they can pick up any company from any sector, giving you the best of what the markets have to offer. Second, this mix of sectors and stocks can be changed to whatever fund manager feels is best for given market conditions. So you get a portfolio that is optimized. Apart from these two benefits, you also have a diversified portfolio, which reduces risk. For all these reasons, Flexi Cap Fund should be a holding in every investor's portfolio.
