A multicap mutual fund is an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks. They offer flexibility to the fund manager to switch between stocks in order to achieve high returns providing better diversification.
Below are the Best Multi Cap Mutual Funds in india:
1 . Nippon India Multi Cap Fund Direct (G)
Nippon India Multi Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 8.0% , a 3 Years return of 25.1% and a 5 Years return of 34.1%
. The fund has an expense ratio of 0.8% and an AUM of ₹
40261 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
2 . ICICI Prudential Multicap Fund Direct (G)
ICICI Prudential Multicap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 9.8% , a 3 Years return of 22.7% and a 5 Years return of 28.6%
. The fund has an expense ratio of 1.0% and an AUM of ₹
14505 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
3 . Mahindra Manulife Multi Cap Fund Direct (G)
Mahindra Manulife Multi Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 8.1% , a 3 Years return of 20.7% and a 5 Years return of 29.9%
. The fund has an expense ratio of 0.4% and an AUM of ₹
5094 crores as of 2025-05-12.
It was Launched on 2017-05-11. The minimum lump sum investment is ₹5000.
4 . Quant Active Fund Direct (G)
Quant Active Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of -7.5% , a 3 Years return of 14.7% and a 5 Years return of 31.3%
. The fund has an expense ratio of 0.6% and an AUM of ₹
9549 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
5 . Sundaram Multi Cap Fund Direct (G)
Sundaram Multi Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 8.3% , a 3 Years return of 18.3% and a 5 Years return of 26.1%
. The fund has an expense ratio of 1.1% and an AUM of ₹
2662 crores as of 2025-05-12.
It was Launched on 2013-01-02. The minimum lump sum investment is ₹5000.
6 . Baroda BNP Paribas Multi Cap Fund Direct (G)
Baroda BNP Paribas Multi Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 7.0% , a 3 Years return of 20.1% and a 5 Years return of 27.1%
. The fund has an expense ratio of 0.9% and an AUM of ₹
2705 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
7 . Motilal Oswal Nifty 500 Index Fund Direct (G)
Motilal Oswal Nifty 500 Index Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 7.3% , a 3 Years return of 16.4% and a 5 Years return of 24.0%
. The fund has an expense ratio of 0.2% and an AUM of ₹
2199 crores as of 2025-05-12.
It was Launched on 2019-09-06. The minimum lump sum investment is ₹5000.
8 . Invesco India Multicap Fund Direct (G)
Invesco India Multicap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 10.4% , a 3 Years return of 21.5% and a 5 Years return of 26.5%
. The fund has an expense ratio of 0.7% and an AUM of ₹
3782 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
9 . ITI Multi Cap Fund Direct (G)
ITI Multi Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 3.5% , a 3 Years return of 22.1% and a 5 Years return of 22.6%
. The fund has an expense ratio of 0.3% and an AUM of ₹
1165 crores as of 2025-05-12.
It was Launched on 2019-05-15. The minimum lump sum investment is ₹5000.
10 . Aditya Birla Sun Life Multi-Cap Fund Direct (G)
Aditya Birla Sun Life Multi-Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 8.0% and a 3 Years return of 18.1%
. The fund has an expense ratio of 0.8% and an AUM of ₹
6066 crores as of 2025-05-12.
It was Launched on 2021-05-07. The minimum lump sum investment is ₹5000.
Investors looking for a diversified portfolio along with an equity-oriented investment can invest in multi-cap mutual funds. Before investing in these mutual funds you must first set your investment goals and objectives. Now select the best multi-cap mutual fund which fulfills your investment objectives in the long term. Other than this primary factor you must also consider factors like historical returns, NAV, risk, AUM, the performance of fund managers before investing. A well thought out investment will help you achieve your goals in the long term.
Top 10 Multicap Funds (Direct Plan) to Invest in 2025
Fund Name
3 Year Returns
5 Year Returns
Nippon India Multi Cap Fund Direct Plan Growth
23.4%
25.4%
Quant Active Fund Direct Plan Growth
15.5%
28.5%
ICICI Prudential Multicap Fund Direct Plan Growth
18.5%
22.3%
Mahindra Manulife Multi Cap Fund Direct Plan Growth
17.3%
26%
Sundaram Multi Cap Fund Direct Plan Growth
14.4%
21%
Baroda BNP Paribas Multi Cap Fund Direct Plan Growth
17.1%
23.4%
Motilal Oswal Nifty 500 Index Fund Direct Plan Growth
12.8%
18.5%
Invesco India Multicap Fund Direct Plan Growth
16.4%
23.5%
ITI Multi Cap Fund Direct Plan Growth
16.8%
18.1%
Aditya Birla Sun Life Multi-Cap Fund Direct Plan Growth
14.8%
NA
Top 10 Multicap Funds (Regular Plan) to Invest in 2025
Fund Name
3 Year Returns
5 Year Returns
Nippon India Multi Cap Fund Regular Plan Growth
26.20%
24.80%
Quant Active Fund Regular Plan Growth
17.80%
27.80%
ICICI Prudential Multicap Fund Regular Plan Growth
20.20%
21.70%
Mahindra Manulife Multi Cap Fund Regular Plan Growth
18.20%
24.60%
Sundaram Multi Cap Fund Regular Plan Growth
16.00%
20.40%
Baroda BNP Paribas Multi Cap Fund Regular Plan Growth
18.40%
22.80%
Motilal Oswal Nifty 500 Index Fund Regular Plan Growth
14.40%
18.40%
Invesco India Multicap Fund Regular Plan Growth
17.70%
22.50%
ITI Multi Cap Fund Regular Plan Growth
17.30%
16.20%
Tata Multicap Fund Regular Plan Growth
NA
NA
What are Multi cap Mutual Funds?
Multicap mutual funds are a type of equity mutual funds. The scheme’s minimum investment in equity and equity related instruments is 75% of the total assets. A multi cap mutual fund is an open ended equity scheme investing a minimum of 25% each across large cap, mid cap and small cap stocks.
Best multi cap mutual funds invest across market capitalizations and sectors. They offer flexibility to the fund manager to switch between stocks in order to achieve high returns. Also, these top funds (multi caps) offer good diversification.
The large cap stocks offer stability and favourable returns during adverse market conditions. While, the right mid and small cap stocks offer significant returns in a bullish market. Therefore, top multi cap mutual funds managers have good opportunities to invest in stocks with growth potential.
With a mandate for other categories of mutual funds, every fund has a restriction with respect to the companies in which it can invest. In a scenario where the markets are not in favour to any category, multi cap mutual funds seem to be the best choice for investors.
When compared to large cap mutual fund, hybrid fund and index fund, multi funds can offer better returns. However, when compared to a pure mid cap fund or a small cap fund, returns from multicap funds are slightly on the lower side. Therefore, multicap mutual funds suit moderate risk-takers to achieve their financial goals.
In the long run, best multicap funds have a good potential for wealth creation. Compared to other categories top multicap mutual funds invest across different companies. Therefore, they have an advantage to tap the market wide investment opportunities. Investors can choose investing in top funds to realize their long term financial goals such as retirement, child education, and pay off loans etc.
Best Features of Multicap Mutual Funds
Investing in Multi caps provides investors with an opportunity to invest in a diversified portfolio. However, over diversification might lead to dilution of returns. Diversification might average out the risk, but it is also averaging out the returns. Hence investors who understand mutual fund basics and market dynamics can invest in top funds. However, investors who do not have knowledge of the same can take help of a professional to invest in mutual funds. Here are the features of best multicap mutual funds, to understand them better.
Dynamic asset allocation: Multi caps invest across market capitalization. The fund manager has the flexibility to invest in different market capitalization based on the situation. He can invest in large cap mutual funds when the volatility is high in the market and pick mid and small cap funds in the Bull Run. The fund manager’s choice of asset allocation helps in maximizing return or reducing risk.
Returns: When compared to large cap mutual fund, hybrid fund and index fund, multi cap funds offer high returns. However, when compared to a pure mid cap fund or a small cap fund, returns from multicap funds can be slightly on the lower side. Returns of best multi cap mutual funds depend largely on the fund manager. The way he/she sees the market and the decisions taken affects the fund returns. The fund manager’s experience and expertise plays an important role in these funds. Right from the strategy he follows for research to picking stocks for the portfolio, every step is important. However, historical performance (annualized returns) is just an indication of the funds performance since inception. Investors shouldn’t highly depend on historical performance. To calculate returns from mutual fund investment, one can use Scripbox online SIP calculator and lump sum return calculator.
Risk: Top multicap mutual funds have a diversified portfolio. Hence the risk in these funds is moderate. They are more risky than pure large cap funds but less risky than pure mid cap and small cap funds. In market lows, the fund plays safe. Standard deviation and sharpe ratio are used to measure risk in a fund. Standard deviation is the measure of volatility in a fund. Sharpe ratio measures the performance of an investment when compared to a risk free asset.
Investment Horizon: Best multi cap mutual funds are equity mutual funds. They have a mixed portfolio of large, mid and small cap stocks. An investor should ideally invest for a medium to long term investment horizon (5-7 years), to benefit from this investment.
Diversification: Top multi cap funds invest across market capitalization. They invest in large, mid and small cap stocks. This provides diversification to the portfolio spreading out risks across all the sectors.
Benefits of investing in Multi cap Funds
Diversification: The primary advantage of best multi cap mutual funds is diversification. It is the only type of equity fund that invests across market capitalization. Diversification in the portfolio helps average out the risk in it. For an investor, it is not only important to maximise returns but also minimize risk. Multicap mutual funds just do that. Due to a diversified portfolio the risk factor in it is managed by averaging it out.
Flexibility: Top multicap mutual funds have a very flexible portfolio. The fund manager invests across market capitalization. And he can shift from one market cap to another based on the market opportunities and situations. For example, in a bull run, the fund manager might increase the concentration of the portfolio on small and midcaps. Whereas in a bearish market, the fund manager might depend on large caps to minimize losses.
Easy and time saving: For investors, seeking to diversify across market capitalization, but do not have the knowledge to do so, Multi cap funds are a one stop solution. The hard work of picking the stocks and keeping track of the investments is done by the fund manager. All one has to do is invest in multi cap fund, and voila, they have a diversified portfolio of stocks in their basket.
Risk: Multicap mutual funds are equity funds with moderate risk. Though they are equity funds, they have moderate risk because of their diversified portfolio. Instead of concentrating their portfolio to just large or mid or small cap, they have extended it all of them. This reduces the risk in the investment. Multicap mutual funds are less risky than pure mid cap or small cap funds. However, they are slightly riskier than large cap funds.
SIP and long term investing: Investing in Multi cap mutual fund through SIP for medium to long term (5-7 years) has quite a few benefits. SIP investing helps in averaging out the cost and brings down the cost of investing. Investing across a business cycle can help spread the risk. And investing for long term will help the SIP returns grow through power of compounding. All these benefits with just investing regularly with discipline. Scripbox’s Online SIP calculator helps in calculating potential SIP returns from an investment.
Taxability of Multicap Mutual Funds:
Multicap funds are equity mutual funds, and hence follow the same taxation norms. Multi caps do not qualify for tax savings. To save tax, one can invest in Section 80C investment options like ELSS fund (Equity Linked Savings Scheme), fixed deposit, Public Provident Fund, etc.
There are two types of taxes Dividend Distribution Tax (DDT) and Capital Gains Tax for multi cap funds.
Dividend Distribution Tax: Dividends are now taxed in the hand of the investor. Any dividend earned is added to the taxable income of the investor. And, in accordance to the income tax slab rate the investor is taxed. Also, for dividends over INR 5,000 a 10% TDS is cut.
Capital Gains Tax: Capital Gains are taxed based on the investment holding period. For equity mutual funds with a holding period less than one year they attract Short Term Capital Gains Tax (STCG). And, for holdings beyond one year the gains attract Long Term Capital Gains Tax (LTCG).
Short Term Capital Gains Tax (STCG): Short term capital gains are taxed at 15% (plus 4% CESS).
Long Term Capital Gains Tax (LTCG): Long term capital gains above INR 1 Lakh are taxed at 10% (plus 4% CESS).
Additionally, a securities transaction tax of 0.001% is charged when investors sell their holdings.
Conclusion
Multi cap funds do not qualify for tax savings. ELSS fund is the only type of mutual fund that qualify for tax savings under Section 80C of the Income Tax Act. However, there are other investments options like Senior Citizen Savings Scheme, ULIPs, Fixed Deposit, Public Provident Fund and Employee Provident Fund, etc.
Fixed deposit is considered one of the safest investment option under 80C. The FD rates vary from 3-4% (post tax) in India. However, debt funds are a better option than fixed deposit as the returns from them are greater than existing FD rates. But debt mutual funds do not qualify for tax savings.
All these are investment options that help one save tax. Hence instead of keeping the money idle in a saving account, investors can invest in any of the above options.
During tax filing, the investors can show the investments done in above options under section 80C of the Income Tax Act. Therefore, the total taxable income comes down during tax filing.
Though best multicap mutual funds to invest in 2025 offer diversification, but they aren’t immune to risks. They have quite a few drawbacks as well.
Multicap mutual funds are diversified funds. Over diversification might lead to dilution of returns. Though diversification averages out the risk, it also averages out the returns.
The costs tend to be high in Multicap funds as the fund manager uses flexible strategies for the portfolio. Their portfolio keeps changing according to market situations and thus increasing the costs.
Returns of the fund depend on the fund manager. The way the fund manager views the market might be different from others. He or she invests accordingly. Hence exposing the fund and its returns to fund manager bias.
Even with all these disadvantages, Multicap mutual funds have performed well in the market. These top performing funds have the capacity to give market-beating returns.
Investing will always be fruitful in the future. Even though it’s a risky affair, with the help of professionals, one can grow their wealth significantly through investing. Scripbox curates portfolios with the best mutual funds using their proprietary algorithm. To know more about mutual fund basics and how to invest in multi cap funds click here.
Happy Investing
How does Scripbox rate funds?
Proprietary system to rate mutual funds
We use a proprietary system to rate mutual funds and based on the outcome of the rating, we classify funds into 4 categories namely "Recommended", "Top Ranked", "Neutral" and "Not Recommended".
Scripbox algorithm recommends 2-4 funds for investment for an investment asset class such as large cap, diversified, liquid etc. When you invest for an objective, the algorithm suggests the appropriate asset class and funds.
Top Ranked
These funds are the top performers within a category of mutual funds considering a combination of criteria. The best amongst these funds are also labelled as Scripbox Recommended.
Neutral
Scripbox recommends other funds, which are more suitable for your investment objectives, within this asset and sub asset class.
Not Recommended
Scripbox algorithm classifies funds as "not recommended" when they perform poorly on a combination of criteria. These funds are usually the poorest performers within a category.
Things we consider to provide ratings for a mutual fund.
Outperformance Consistency
We look at the consistency of the outperformance that the fund has displayed. A fund with high consistency is preferred
Rolling Returns (1 Year Holding Period)
We consider average 1 year return that the fund has delivered over an extended period of time
Rolling Returns (3 Year Holding Period)
We consider average 3 year return that the fund has delivered over an extended period of time
Volatility of Outperformance
We consider how volatile the out-performance over the benchmark has been. A lower volatility is preferred
Downside Protection Measure
We look at how resilient the fund is to market down trends. A fund that has shown a higher resilience is preferred
Upside Participation Measure
We consider how well the fund has been able to participate in upmoves in the market. A fund that participates well is preferred
Fund Size
We look at the size of the fund with respect to other funds in the category. Larger funds are preferred.
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