The Indian stock markets are close to their peaks with Nifty 50 over 25,500 and BSE Sensex above 84,000. The markets have been supported by SIP flows, the return of FIIs, a potential revival of economic growth, and policy stability under Modi 3.0.
Against this backdrop, Multi Cap Funds are taking centre stage on Dalal Street. These funds have a prescribed 25-25-25 distribution between largecaps, midcaps, and smallcaps.
This allocation provides disciplined diversification and a lower concentration risk in times of market extremes. These funds have been consistent wealth generators for SIP investors over the last ten years. They’ve aided investors in getting past high stock-specific and sectoral risks.
Systematic Investment Plans (SIPs) are the way to go in these funds. SIPs in these funds have generated stunning returns of 18–20% outperforming conventional instruments like FDs and even select largecaps or flexi cap funds.
Multi Cap Mutual Funds – 10 Year SIP Returns
Past performance is not an indicator of future returns.
This list is not exhaustive.
The securities quoted are for illustration only and are not recommendatory.
Rolling Returns in %. Direct Plan – Growth option considered
(Source: ACE MF)
#1 Nippon India Multi Cap Fund
As of June 2025, Nippon India Multi Cap Fund’s AUM is over Rs 430 bn, being one of the largest in the multi cap space.
The current portfolio is 44.5% large-cap, 27.3% mid-cap, and 26.4% small-cap exposure, a diversified portfolio as per its mandate.
This diversification has enabled the fund to ride market cycles—whether the steep declines or the volatility due to interest rate increases and geopolitical tensions.
Nippon India Multi Cap Fund, in terms of long-term SIP returns, has been a consistent wealth accumulator. As seen from the table above, a Rs 10,000 investment has increased to Rs 34.88 lakhs, giving a SIP return (XIRR) of 20.24%—the best in its category.
From the portfolio strategy standpoint, the fund is presently overweight in financials, capital goods, energy, and services, with strongest holdings in HDFC Bank (5.8%), Axis Bank (4.1%), ICICI Bank (3.8%), GE Vernova T&D (3.3%), and Reliance Industries (3.3%).
This sector blend provides a mix of cyclical and defensives, positioning the fund to benefit from India’s capex cycle, domestic consumption growth, and banking reforms.
In spite of its forward positioning in certain small and mid-cap picks, the fund has a modest volatility and good Sharpe ratio, demonstrating its capacity to provide more returns for the risk taken.
This fund has long-term growth potential coupled with diversification and is supported by a decade of good performance.
#2 Invesco India Multi Cap Fund
Invesco India Multi Cap Fund has proven to be a pillar of strength over the years with a steady performance. Launched in March 2008, the fund has seen many market cycles and has come out unscathed.
As of mid-2025, the fund’s AUM is around Rs 53 bn, sufficient to be stable and yet agile enough to take advantage of market opportunities.
Invesco India Multi Cap Fund has a bottom-up stock-picking approach, biased towards consistent earnings growth and strong governance of high-quality businesses. The fund does not over-concentrate in high-risk industries and usually maintains a diversified portfolio of 40–60 stocks.
Its latest allocation indicates a well-spread portfolio in financials (11.4%), healthcare (9.7%), IT (9.3%), and retail (8.3%), with stocks like ICICI Bank (5.5%), Infosys (5.2%), HDFC Bank (4.3%), and Trent (3.6%) in its highest exposures.
An investment of Rs 12 lakhs in this fund over the last 10 years would have become Rs 31.2 lakhs, an XIRR of 18.18%.
The fund has a growth at a reasonable price (GARP) investment approach, which serves it well in both bull markets and correction phases.
Though it is not likely to be the best performer in short-term bull phases, its stability during market corrections and emphasis on quality make it a consistent performer.
#3 ICICI Pru Multi Cap Fund
ICICI Prudential Multi Cap Fund is a very old and well-established equity fund in India, which was launched way back in October 1994.
The portfolio of the fund as of mid-2025 is a cautious blend of cyclical and structural themes, with exposure to financials, auto, capital goods, power, and industrial manufacturing.
The fund managers have a reputation for making active sector bets and for extracting value in underpriced areas of the market—often profiting from early investment in up-and-coming leaders.
ICICI Pru Multi Cap Fund has an AUM of more than Rs 130 bn at present, hence it is one of the bigger players in the Multi Cap space.
Even with its size, it has been able to keep itself nimble, making allocations effectively in terms of market caps and sectors.
The top holdings in the portfolio are ICICI Bank (5.7%), RIL (4%), HDFC Bank (3.6%), and Axis Bank (3.2%). Sector-wise, the fund balances by investing more in banking (17.9%), auto & ancillaries (7.6%) and crude oil (7.5%).
With its heritage, solid research approach, and emphasis on risk-adjusted returns, it is still a good option for SIP investors who wish to create wealth over the long term.
Conclusion
In the future, Multi Cap Funds are structurally well-suited for investor participation across market capitalisations.
In today’s market environment marked by high valuations, industry-specific dispersion, and changing macro themes, Multi Cap Funds provide a balanced approach to managing both cyclical changes and structural long-term themes.
With capital flows increasingly favouring flexibility and proportionality over one-sided bets, the inherent diversification of Multi Cap Funds makes them potential winners in India’s stock market.
Sustaining SIPs in good Multi Cap Funds can be a judicious strategy to build wealth and efficiently manage portfolio volatility.
Invest wisely.
#Table Note: Data as of June 27, 2025.
“Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.”
Happy Investing.
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