Synopsis – Multicap funds provide the best opportunities across India’s mutual fund market, offering investors growth potential, and relatively low volatility for long term. In this article, we explore the top 10 best-performing multicap mutual funds delivering high returns.
Multicap mutual funds provide stability, growth, and risk by investing in large, mid, and small-cap stocks. The SEBI rule of 2025 ensures that one-fourth of investments go each to large, mid, and small-cap stocks, promoting diversification while helping create a steady wealth-building engine over the long run.
What Are Multi-Cap Mutual Funds?
- Multicap funds are equity mutual funds investing in all types of companies: large(cap)(stable), mid(cap)(growth), and small(cap)(high potential).
- Unlike flexicap funds, multicap funds must always invest in at least 25% in each segment.
- The structure offers great benefits to long-term investors looking for balanced risk, steady growth and built-in diversification.
Selection Criteria
- 3-year annualized returns
- AUM (size matters for liquidity and operational efficiency)
- Management team (experience matters)
- Consistency of performance and solid performance metrics (relative risk – Sharpe ratio, alpha)
- Expense ratio and wider portfolio construction
1. Nippon India Multi Cap Fund
- Fund Manager: Manish Gunwani
- 3Y return: 25.6%
- AUM: ₹39,000 crore
- Expense Ratio: 0.73% (Direct)
- Why it Stands Out: Strong performance, diversified approach across all market caps, and solid risk management.
2. Mahindra Manulife Multi Cap Fund
- Fund Manager: V. Balasubramanian
- 3Y Return: 19.8%
- AUM: ₹5,010 crore
- Expense Ratio: 0.45% (Direct)
- Why it Stands Out: Low expense, small size providing nimbleness, and strong ranking on growth & cost-efficiency.
3. Baroda BNP Paribas Multi Cap Fund
- Fund Manager: Alok Ranjan
- 3Y Return: 19.1%
- AUM: ₹2,791 crore
- Expense Ratio: 0.93%.
- Why it Stands Out: Stable returns, prudent stock selections and effective cross-sector balance.
4. Invesco India Multicap Fund
- Fund Manager: Pranav Gokhale
- 3Y Return: 19.5%
- AUM: ₹3,897 crore
- Expense Ratio: 0.66%.
- Why it Stands Out: Stable history of performance and flexible portfolio that has performed well relative to market dynamics.
5. ICICI Prudential Multicap Fund
- Fund Manager: Sankaran Naren
- 3Y Return: 21.1%
- AUM: ₹13,938 crore
- Expense Ratio: 0.99%
- Why it Stands Out: Veteran manager, disciplined capitalization, and strong positioning.
Also read: Top 10 Best-Performing Large Cap Mutual Funds with Highest AUM; Do You Hold Any?
6. Quant Active Fund
- Fund Manager: Sandeep Tandon
- 3Y Return: 32.8%
- AUM: ₹9,389 crore
- Expense Ratio: 0.57%
- Why It Stands Out: Aggressive, value-oriented calls and significant exposure to mid cap and small cap during up cycles.
7. Kotak Multicap Fund
- Fund Manager: Harsha Upadhyaya
- 3Y Return: 16.9%
- AUM: ₹5,000+ crore
- Expense Ratio: 0.7%
- Why It Stands Out: Solid balance of risk and returns, stability and investment on the basis of strong research.
8. SBI Multicap Fund
- Fund Manager: Anup Upadhyay
- 3Y Return: 15.8%
- AUM: ₹3,000+ crore
- Expense Ratio: 0.75%
- Why It Stands Out: Blend of large and mid cap exposure and a disciplined philosophy from the fund house.
9. HDFC Multicap Fund
- Fund Manager: Gopal Agrawal
- 3Y Return: 15.3%
- AUM: ₹2,500+ crore
- Expense Ratio: 0.8%
- Why It Stands Out: Brand trust, depth of equity analysts and past performance of steady outperformance.
10. Axis Multicap Fund
- Fund Manager: Shreyash Devalkar
- 3Y Return: 13.5%
- AUM: ₹2,100 crore
- Expense Ratio: 0.6%
- Why It Stands Out: Clean portfolio, tech-driven selection, and digital convenience.
Conclusion
With a disciplined approach to selection, investors can achieve steady growth, broad coverage, and compounding with confidence with the top multicap funds in 2025, independent of market cycles.
Written By Rachna Rajput