Best Multi Cap Funds in 2025

Benefits of Investing in the Best Multicap Funds

The following are the benefits that you can reap by investing in the best Multicap funds:

• As multicap funds include various sectoral funds, it helps you diversify your investment portfolio.
• You can choose to invest in multi cap funds through SIP (Systematic Investment Plan) or with a lump sum, based on your convenience.
• As an investor, you can invest in multi cap funds to minimise your risks while maximising returns as it includes flexible asset allocation.

Things to Remember While Investing in the Best Multicap Funds

Here are the things that you need to consider while investing in some of the best multi cap funds in India:

• As an investor, if you have an investment time horizon of at least 5 years to align with your financial goals, you can choose a multi cap fund.
• Multi cap funds include a combination of various categories of funds, wherein the risks can be diversified, yet being subject to market risks.
• Choosing a multi cap fund with a lower expense ratio can help you maximise the actual returns of your investment.

An Overview of the Best Multi Cap Mutual Funds

Here is a quick overview of some of the best multi cap funds that you must check out in order to undertake calculated risks:

1. Nippon India Multi Cap Fund

Nippon India Multi cap Fund (Direct Growth) invests 97.59% in Indian equities, of which 34.92%, 20.88% and 16.93% are in large cap, mid cap and small cap stocks. The fund managers include Kinjal Desai, Ashutosh Bhargava and Sailesh Raj Bhan.

• Asset Under Management: ₹35,353.47 crore approximately
• Investment Details: Equity (97.59%), Others (2.41%)
• Expense Ratio: 0.8%
• Benchmark: Nifty 500 Multicap 50:25:25 Total Return Index

2. SBI Multicap Fund

SBI Multi Cap Fund allocates 94.46% of its portfolio to domestic equities, with 38.19% in large cap stocks, 14.22% in mid cap stocks and 10.55% in small cap stocks. The fund is managed by R. Srinivasan and Mohit Jain.

• Asset Under Management: ₹17,579.48 crore approximately
• Investment Details: Equity (94.46%), Debt (0.94%), Others (4.6%)
• Expense Ratio: 0.89%
• Benchmark: Nifty 500 Multicap 50:25:25 Total Return Index

3. HDFC Multi Cap Fund

HDFC Multi Cap Fund (Direct Growth) invests 99.14% in domestic equities with 38.99%, 18.66% and 17.46% in large cap, mid cap and small cap stocks. Managed by Dhruv Muchhal and Gopal, this fund allows you to avail tax deductions on your annual investment up to ₹1.5 lakh.

• Asset Under Management: ₹14,650.92 crore approximately
• Investment Details: Equity (99.14%), Others (0.86%)
• Expense Ratio: 0.76%
• **Benchmark: Nifty 500 Multicap 50:25:25 Total Return Index

4. Kotak Multicap Fund

Kotak Multicap Fund (Direct Growth) includes 96.89% in domestic equities wherein 41.81%, 18.63% and 20.58% are in large cap, mid cap and small cap stocks. If you have an investment horizon of at least 3 years, you can choose this fund among the other best multi cap funds.

• Asset Under Management: ₹14,374.18 crore approximately
• Investment Details: Equity (96.89%), Others (3.11%)
• Launch Date: September 2021
• Expense Ratio: 0.45%
• Benchmark: Nifty 500 Multicap 50:25:25 Total Return Index

5. ICICI Prudential Multicap Fund

ICICI Prudential Multicap Fund (Direct Growth) invests 92.8% in Indian equities, wherein a portion of 38.66%, 23.45% and 13.52% are in large cap, mid cap and small cap stocks. Moreover, 1.81% of its debt investment includes government securities.

• Asset Under Management: ₹12,901.48 crore approximately
• Investment Details: Equities (92.8%), Debt (1.81%), Others (5.39%)
• Expense Ratio: 0.99%
• Benchmark: Nifty 500 Multicap 50:25:25 Total Return Index

Key Takeaway

The best multi cap funds in 2025 in India help you diversify your investment portfolio while optimising your risks and returns. Investing in these funds can further help you choose multiple stocks of various sizes with a single fund. You can check the portfolio and sectors of your multicap fund before investing to ensure you maximise your returns, despite market volatility.

Frequently Asked Questions

1. Are the best multi cap funds suitable for a long-term investment horizon?

Investors with an investment horizon of 5 to 10 years can choose a multicap fund. As these funds are subject to market volatility, you can potentially minimise the risks with long-term investment.

2. Where do the best multi cap funds invest?

Multi cap funds need to invest at least 75% of their portfolio in stocks. However, fund managers of these funds can choose stocks of different sectors irrespective of the company size.

3. What are the different types of multi cap funds?

Multi cap funds are usually a combination of large, small and mid cap stocks. Notably, these stocks can be from different sectors, irrespective of the company size, which allows investors to diversify their investment portfolio.

4. What is the difference between flexi cap and multi cap funds?

The key difference between multi cap and flexi cap funds lies in their market-cap allocations. Multi-cap funds are mandated to allocate a minimum of 25% each to large cap, mid cap and small cap stock. On the other hand, flexi-cap funds have the flexibility to invest across large, mid and small cap stocks without any predefined allocation limits.

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