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Best Multi Cap Mutual Funds 2026

A multi cap fund must hold at least 75% in equity and — this is what defines the category — a minimum of 25% each in large caps, mid caps and small caps at all times. The allocation is a rule, not a decision: a multi cap fund always carries at least a quarter of its portfolio in small caps, whatever the manager thinks of small cap valuations.

The rules, in short

Universe: All three segments, 25% minimum each; Defined by AMFI's half-yearly list, last revised July 2026.
Minimum allocation: 25% large + 25% mid + 25% small; SEBI category rule; at least 75% in equity overall.
Tax on gains: 12.5% above ₹1.25 lakh; Long-term capital gains (held over 12 months) under Section 112A. Gains on units held 12 months or less are short-term and taxed at 20%. The ₹1.25 lakh exemption is an annual aggregate across all your equity gains.

All 34 Multi Cap funds, ranked

Ordered by three-year annualised return, computed from official AMFI NAV history to a common date. Every fund here follows the same SEBI mandate, so the differences below come from the manager's choices and the fund's costs — not from a difference in what they are allowed to hold.

NAV as of 31 Aug 2026

Category average over 3Y: 13.9% a year across 21 funds with a full record.

#Fund1Y3Y ↓5Yvs catExpense

Median expense ratio in this category: 0.63%. Direct plans cost less than regular plans — the same fund appears once here, on its longest-running plan.

Not enough history to rank

These 13 funds do not yet have a full 3Y NAV record, so ranking them against the funds above would compare different periods.

BAJAJ FINSERV MULTI CAP FUND DSP Multicap Fund Edelweiss Multi Cap Fund Franklin India Multi Cap Fund Groww Multicap Fund Motilal Oswal Multi Cap Fund Nippon India Multi Cap Fund Institutional Nippon India Multi Cap Fund Institutional Plan Growth Plan PGIM India Multi Cap Fund Samco Multi Cap Fund TRUSTMF MULTI CAP FUND UTI Multi Cap Fund WhiteOak Capital Multi Cap Fund

Multi cap vs flexi cap — the difference that matters

These two categories are constantly confused, and the difference is not a matter of degree. A multi cap fund is bound to the 25/25/25 minimums. A flexi cap fund has one constraint — at least 65% in equity — and is otherwise free to hold whatever mix of large, mid and small caps its manager wants, including nearly all large cap.

The practical consequence is about who decides. In a multi cap fund, your exposure to small caps is set by regulation and stays there through every market cycle. In a flexi cap fund, that exposure is a judgement call the manager makes and re-makes. Neither is inherently better; they are different products, and comparing their returns without accounting for that is comparing different risk levels.

The flexi cap category exists because of this rule. When SEBI introduced the 25/25/25 requirement for multi cap funds in 2020, many existing funds did not want to be forced into small caps — so a new category was created for the unconstrained mandate they had actually been running.

How AMFI decides what counts as large, mid and small cap

AMFI ranks every listed company by average daily full market capitalisation and publishes the list twice a year, in January and July. Ranks 1–100 are large cap, 101–250 are mid cap, and everything from 251 down is small cap. In the July 2026 revision the large-cap cut-off was about ₹1.06 lakh crore and the mid-cap cut-off about ₹33,500 crore. Because the list is redrawn every six months, a stock can move between buckets and funds then have to adjust their holdings to stay within their mandate.

How to read the table below

Returns are annualised and computed from our own AMFI NAV history rather than taken from a fund factsheet, so every fund on this page is measured to the same date on the same basis. The category average is calculated across the same set.

Expense ratio is the annual cost, already deducted from the NAV you see — a fund returning 15% gross at a 1.2% expense ratio shows 13.8%. Direct plans cost less than regular plans because they carry no distributor commission.

Past returns describe what happened; they are not a forecast. Two funds with identical three-year numbers can have reached them through very different levels of volatility.

Frequently asked questions

What is the difference between a multi cap and a flexi cap fund?+

A multi cap fund must hold at least 25% each in large, mid and small caps at all times. A flexi cap fund only has to hold 65% in equity and can allocate across market caps however it chooses. So a multi cap fund always carries meaningful small cap exposure; a flexi cap fund may carry almost none.

How much of a multi cap fund is in small caps?+

At least 25%, at all times, by SEBI rule. A manager who considers small caps expensive cannot go below that floor — which is the main way a multi cap fund differs in risk from a flexi cap fund.

How are Multi Cap funds ranked on this page?+

By three-year annualised return, computed from official AMFI NAV history to a common date, so every fund is measured on the same basis. Funds without a full three-year record are listed separately rather than ranked against funds that have one.

Are these returns after fees?+

Yes. Returns are calculated from NAV, and the expense ratio is already deducted from NAV daily. The expense-ratio column tells you what that ongoing cost is.

How this page is produced

Every figure above is computed from our own archive of the official AMFI NAV file, going back to 2006, to NAV dated 31 Aug 2026. Nothing here is copied from a factsheet or a third-party summary. The full method is published, including its limitations.

Because every fund here is measured to the same date on the same basis, the column is directly comparable — which a page assembled from individual factsheets is not. Returns are annualised over 3Y and the category average is calculated across the same set of funds shown above. Tax rules summarised on this page are general and current for FY 2026-27 — confirm your own position with a qualified tax adviser.

Written and maintained by Azad Mohammed, who built the pipeline these numbers come out of. Found an error? Tell us — corrections are made and the page rebuilds within the hour.

This page describes what each fund has done. It is not investment advice and not a recommendation to buy or sell any scheme. Arthkar is not a SEBI-registered investment adviser and does not provide or arrange investment advice. Mutual fund investments are subject to market risk; read all scheme related documents carefully.