Top multi cap mutual funds in India
Ranked by 7-year rolling returns, downside risk, and consistency — not recent returns alone.
Fund Name
7yr Rolling Returns
Risk of Below FD Returns
Consistency Of Performance
Kotak Multicap Fund
-
Very Low
Good
4 years old
Hsbc Multi Cap Fund
-
Very Low
Good
3 years old
Lic Mf Multi Cap Fund
-
Very Low
Good
3 years old
Axis Multicap Fund
-
Very Low
Good
4 years old
Mahindra Manulife Multi Cap Fund
21%
Low
Average
9 years old
All 31 multi cap funds are loaded — tap to expand
How these funds are ranked
Multi cap funds are required to hold at least 25% each in large, mid, and small cap. DrFin ranks them on rolling returns, downside risk, and consistency across full market cycles.
7yr rolling returns
Average across all 7-year windows since Jan 2015 — not start-to-today
Below FD risk
% of 3-year periods where returns fell below a fixed deposit (7%)
Consistency
How often each fund ranked in the top half of its multi cap peers
Fund age
Older funds have more data across market cycles — more reliable signals
FAQs
What is a Multi Cap fund?
Multi cap funds are required to hold at least 25% each in large, mid, and small cap companies, offering diversification across the full market cap spectrum.
How risky are Multi Cap funds — how much can they fall?
Multi Cap funds carry Medium risk.
Historically, the worst peak-to-trough fall in this category has been around 37%, with an average market correction fall of 19% (vs 21% for the benchmark). Recovery from major falls has taken around 22 months on average.
Investors holding Multi Cap funds for 3 years earned less than FD returns in approximately 12% of periods. Longer holding periods significantly reduce this risk.
What returns can I realistically expect from Multi Cap funds?
Across all rolling 5-year periods, Multi Cap funds delivered:
•
Typical (average) return: 18% p.a.
•
Best historical outcome: 33% p.a.
•
Worst historical outcome: -1% p.a.
The probability of earning less than FD returns over a 3-year period has historically been 12%.
Recent trailing returns can be misleading — use the full range of historical rolling returns for a realistic picture.
How long should I stay invested in Multi Cap funds?
The minimum recommended holding period for Multi Cap funds is 5+ years.
Historically, the probability of earning less than FD returns decreased significantly with longer holding periods:
•
3 years: 12% chance of below-FD return
•
5 years: 8% chance of below-FD return
•
7 years: 0% chance of below-FD return
Investors who cannot commit to at least 5+ years should consider lower-risk alternatives.
How do I choose the best Multi Cap fund?
The most common mistake: picking the fund with the highest 1- or 3-year return. Recent returns are heavily influenced by timing, not skill.
What to look for instead:
•
Rolling return consistency: how did the fund perform across all periods, not just the recent window?
•
Downside protection: how much does the fund fall during market corrections? Look at maximum drawdown and downside capture.
•
Benchmark consistency: what % of rolling periods did the fund beat its benchmark?
•
Expense ratio: for active funds, prefer below 1.5%; index funds typically charge 0.1–0.2%
•
AUM and track record: prefer funds with ₹500+ crore AUM and 7+ years of history
What to avoid:
•
Chasing the top-ranked fund from last year
•
Selecting based on star ratings alone — ratings lag and change
•
Ignoring the expense ratio in long-term compounding
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