The two most consistent multi-cap funds right now

Summary: Multi-cap funds are still a relatively young category, but investors are already flocking to them for their built-in diversification across large-, mid- and small-cap stocks. And although these funds are very young and have limited history, consistency is a test of quality. In this story, we cut through the noise to identify which multi-cap funds have shown the most reliable performance so far, and why two funds, in particular, stand out as early models of consistency. When it comes to building the core of an equity portfolio, multi-cap funds can deserve a prime spot. Because they invest across large-cap, mid-cap and small-cap stocks, giving investors a diversified exposure in a single fund. As per SEBI’s rules, multi-cap funds must allocate at least: 25 per cent of investors’ money to large-cap stocks (the top 100 companies by market capitalisation) 25 per cent to mid-cap stocks (companies ranked 101–250) 25 per cent to small-cap stocks (companies ranked 251 and below) The remaining 25 per cent of the portfolio can be invested at the fund manager’s discretion. This flexibility allows fund managers to tilt towards whichever segment offers better opportunities at a given time, while still ensuring that the portfolio stays diversified. This means you don’t have to juggle multiple schemes to balance growth potential and risk. Essentially, a well-managed multi-cap fund can act as the backbone of your portfolio, offering both stability and growth over time. No wonder multi-cap funds have become immensely popular. According to the latest AUM data provided by the Association of Mutual Funds in India (AMFI), the five largest schemes in this space manage over Rs 15,000 crore each, with Nippon India Multi Cap leading the pack with a whopping Rs 47,294 crore. Here’s the snapshot of the top five by assets under management (AUM): Fund AUM (Rs crore) Nippon India Multicap 47,294 SBI Multicap 22,988 Kotak Multicap 19,227 HDFC Multicap 18,675 ICICI Prudential Multicap 15,443 The popularity isn’t just because of size; performance backs the hype, too. We analysed the top 10 performing multi-cap funds over the last three years, a reasonable window given that this category doesn’t have a