Multi-cap fund returns: ahead of flexi caps on 3 years

Multi caps against flexi caps

Over the three years to 14 May 2026, the median multi-cap fund returned 18.56% a year. The median flexi-cap fund returned 15.38%.

The two categories look alike on paper. Both buy companies of every size. The difference is a rule: SEBI requires a multi-cap fund to keep at least 25% each in large, mid and small companies, while a flexi-cap fund may hold companies of any size in any mix. Over these three years, being made to hold smaller companies paid.

All figures are for the Direct plan, Growth option, computed from daily NAVs to 14 May 2026. Returns of one year or more are compounded annual rates; year-to-date figures are plain percentage changes.

A young category

Of the 32 multi-cap funds, 25 were launched in 2021 or later. Only 19 have a three-year record and only 8 a five-year one, so the longer numbers rest on a handful of funds.

Every one of the 19 multi-cap funds with a three-year record returned more than 14% a year. In 2026 so far, the median multi-cap fund is down 2.00%, against 4.52% for flexi caps.

Top and bottom over three years

Over five years, Nippon India Multi Cap leads at 21.81% a year, followed by Mahindra Manulife (19.58%) and ICICI Prudential Multi Cap (18.81%).

Same fund house, two categories

Nineteen fund houses run both a multi-cap and a flexi-cap fund with three-year records. That is a fairer test than the medians, since it holds the house and its research team constant.

The multi-cap fund was ahead in 13 of 19 houses. Over one year it was ahead in 23 of 29.

Where the flexi-cap fund won, it was usually one of that category's strongest. Four of the six winners, Bank of India, Invesco India, Quant and HDFC, rank in the flexi-cap top seven over three years.

Against their indices

Multi caps are benchmarked to the Nifty500 Multicap 50:25:25, an index built to the same 50:25:25 split. Flexi caps use the Nifty 500. Both are our estimates of total return, from NSE's daily price and dividend yield to the close of 14 May.

The multi-cap index itself beat the Nifty 500 by 2.64 points a year over three years. Much of the multi-cap funds' lead over flexi caps is the lead of their index.

The cost of the extra return

Multi caps were bumpier. Their median annualised volatility over three years was 15.04%, against 13.95% for flexi caps. Among funds with a three-year record, the median worst fall was 19.95% against 18.81%.

What this does not tell you

Three years favoured smaller companies. A rule that forces a fund to hold them looks good when they lead. In a stretch when large companies lead, the same rule would hold multi caps back.

The sample is small. Nineteen funds over three years and eight over five are thin ground for a firm conclusion.

The benchmarks are our estimates, and closed or merged funds are not counted. Nothing here is advice to buy or sell any fund.

Where to go from here

Every fund is on the multi-cap fund page and the flexi-cap fund page. Flexi cap vs multi cap explains the rules behind the two.

The April picture for flexi caps, including how far they fell in March, is in flexi-cap fund returns in April. For how every category did last month, see the April equity fund scorecard.