Multicap funds are the preferred choice of investors seeking diversified exposure to large-cap, mid-cap, and small-cap stocks. They have the flexibility to respond to market conditions with their approach to allocation, balancing risk and reward.
Why Opt for Multicap Funds?
- Diversification: Diversifies investments across different market capitalizations.
- Flexibility: Managers can make changes in allocations with market conditions.
- Balanced Risk: Merges stability from large-caps with growth prospects of mid and small-caps.
1. Parag Parikh Flexi Cap Fund
- AUM: ₹1,00,000+ crore
- 1-Year Return: ~36%
- Expense Ratio: ~0.80% (Direct Plan)
Why it stands out: This fund has achieved a significant milestone by surpassing ₹1 lakh crore in Assets Under Management (AUM), making it the largest flexi cap fund in India. Its consistent performance and strategic asset allocation have contributed to its popularity among investors.
2. Quant Active Fund
- AUM: ₹9,550 crore
- 1-Year Return: ~44%
- Expense Ratio: ~0.78%
Why it stands out: This fund has delivered impressive returns through an aggressive sector-rotation strategy and data-driven decision-making. Ideal for investors with higher risk appetite.
3. Kotak Multicap Fund
- AUM: ₹16,787 crore
- 1-Year Return: ~32%
- Expense Ratio: ~0.68%
Why it stands out: Backed by Kotak’s strong research team, this fund offers a balanced portfolio with a tilt towards quality large and mid-cap stocks.
Also read: Top Hybrid Mutual Funds in India to Keep on Your Radar in 2025
4. ICICI Prudential Multicap Fund
- AUM: ₹14,504.64 crore
- 1-Year Return: ~30%
- Expense Ratio: ~1.74%
Why it stands out: Focuses on fundamental analysis and value buying. Its diversified portfolio helps reduce volatility during market corrections.
5. Nippon India Multicap Fund
- AUM: ₹40,261.14 crore
- 1-Year Return: ~29%
- Expense Ratio: ~0.90%
Why it stands out: Known for tapping into high-growth mid and small-cap stocks while maintaining a solid base of large caps. A great choice for aggressive long-term investors.
6. HDFC Multicap Fund
- AUM: ₹16,625.28 crore
- 1-Year Return: ~28%
- Expense Ratio: ~0.65%
Why it stands out: HDFC brings stability and a conservative investment style. Ideal for investors looking for steady growth with lower risk.
7. Axis Multicap Fund
- AUM: ₹7,235.36 crore
- 1-Year Return: ~27%
- Expense Ratio: ~0.60%
Why it stands out: A relatively new entrant but with a disciplined investment approach. Great for those looking to diversify with moderate risk.
8. Mahindra Manulife Multicap Fund
- AUM: ₹5,094 crore
- 1-Year Return: ~30%
- Expense Ratio: ~0.75%
Why it stands out: A small yet nimble fund that’s gaining traction for outperforming peers in volatile market phases.
9. Baroda BNP Paribas Multicap Fund
- AUM: ₹2,600+ crore
- 1-Year Return: ~26%
- Expense Ratio: ~0.70%
Why it stands out: Strong research-driven stock picks and consistent performance across market cycles. It’s gaining trust among long-term investors.
10. ITI Multicap Fund
- AUM: ₹950+ crore
- 1-Year Return: ~28%
- Expense Ratio: ~0.82%
Why it stands out: A rising star in the multicap category, this fund focuses on fundamentally strong companies with good valuation metrics.
How to Choose the Right Multicap Fund?
Selecting the right multicap fund depends on individual financial goals, risk tolerance, and investment horizon. Consider the following factors:
- Investment Horizon: Opt for a minimum of 3–5 years to ride out market volatility.
- Fund Performance: Review historical returns but remember past performance isn’t indicative of future results.
- Expense Ratio: Lower expense ratios can enhance net returns over time.
- Fund Manager’s Track Record: Experienced fund managers can navigate market complexities effectively.
Multicap funds present a balanced investment option, blending the safety of large-cap stocks with the growth of mid and small-cap stocks. The funds mentioned above have shown good performance and are managed by popular fund houses. But it’s always important to do extensive research or consult a financial advisor before investing.
Written by Pydimarri Hema Harshini
