Synopsis: Multicap mutual funds have delivered up to 23% CAGR in the last 3 years by investing across large-cap, mid-cap, and small-cap stocks. They offer diversification and balanced growth through a professionally managed portfolio.
Multicap mutual funds invest in multiple market capitalization segments, which create diverse investment options through a single fund. The funds aim to achieve stability through their large-cap holdings while enabling investors to benefit from mid-cap and small-cap growth opportunities.
Why Choose Multicap Funds?
The investment strategy uses a balanced approach that combines large-cap stocks that deliver stability with mid- and small-cap stocks that create growth. The combination of these elements enables better risk management, which results in investors receiving advantages during various market conditions, thus making the investment suitable for generating long-term wealth.
1. Kotak Multicap Fund
- NAV: ₹19.15
- AUM: ₹23,886.02 Cr
- Expense Ratio: 0.45%
- Exit Load: 1% (within 12 months)
- Performance Snapshot
- 3-Year CAGR: 23.3%
- 3-Year Absolute Return: 87.7%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 23.3%
- Equity Multi-Cap Category Average: 18.5%
- Outperformance: +4.8 percentage points
2. Axis Multicap Fund
- NAV: ₹17.25
- AUM: ₹9,361.08 Cr
- Expense Ratio: 0.57%
- Exit Load: 1% (within 12 months)
- Performance Snapshot
- 3-Year CAGR: 22.3%
- 3-Year Absolute Return: 83.1%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 22.3%
- Equity Multi-Cap Category Average: 18.5%
- Outperformance: +3.8 percentage points
3. Mahindra Manulife Multi Cap Fund
- NAV: ₹38.55
- AUM: ₹6,173.77 Cr
- Expense Ratio: 0.48%
- Exit Load: 1% (within 3 months)
- Performance Snapshot
- 3-Year CAGR: 20.6%
- 3-Year Absolute Return: 75.5%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 20.6%
- Equity Multi-Cap Category Average: 18.5%
- Outperformance: +2.1 percentage points
4. Nippon India Multi Cap Fund
- NAV: ₹300.08
- AUM: ₹50,820.01 Cr
- Expense Ratio: 0.73%
- Exit Load: 1% (within 12 months)
- Performance Snapshot
- 3-Year CAGR: 20.5%
- 3-Year Absolute Return: 75.2%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 20.5%
- Equity Multi-Cap Category Average: 18.5%
- Outperformance: +2 percentage points
5. ICICI Prudential Multicap Fund
- NAV: ₹821.28
- AUM: ₹16,315.09 Cr
- Expense Ratio: 0.95%
- Exit Load: 1% (within 12 months)
- Performance Snapshot
- 3-Year CAGR: 19.0%
- 3-Year Absolute Return: 68.8%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 19.0%
- Equity Multi-Cap Category Average: 18.5%
- Outperformance: +0.5 percentage points
Also Read: How HNIs Can Turn ₹1 Crore into Long-Term Wealth with Mutual Funds
Comparison Table
| Fund Name | 3-Year CAGR | Expense Ratio | AUM (₹ Cr) | Outperformance |
| Kotak Multicap Fund | 23.3% | 0.45% | 23,886.02 | +4.8 % |
| Axis Multicap Fund | 22.3% | 0.57% | 9,361.08 | +3.8% |
| Mahindra Manulife Multi Cap Fund | 20.6% | 0.48% | 6,173.77 | +2.1% |
| Nippon India Multi Cap Fund | 20.5% | 0.73% | 50,820.01 | +2% |
| ICICI Prudential Multicap Fund | 19.0% | 0.95% | 16,316.09 | +0.5% |
Note: NAV, AUM, expense ratio, and other fund details are sourced from Groww as of March 27, 2026.
Who Should Invest in Multicap Funds?
- Multicap mutual funds serve investors who want to achieve both growth and stability.
- The investment option is suitable for beginners who want to start SIPs with a small amount of ₹500 and for investors who want to use compounding to grow their investments through the years.
- The funds match investors who prefer taking moderate to high risks because they can manage temporary changes in the market.
- The investment option does not match people who want fast profits or people who have extremely low risk tolerance.
Conclusion
Multicap mutual funds provide a diversified approach by investing across large-cap, mid-cap, and small-cap segments within a single portfolio. The top-performing funds have delivered strong historical returns, including up to 23% CAGR over the last 3 years. While the previous performance of these investments shows their potential value, investors should concentrate on their long-term investments and select options that match their risk tolerance and financial objectives.
Written by Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
