Bangalore : Multi-cap mutual funds are witnessing renewed investor interest as volatile market conditions push investors towards diversified equity strategies.
According to data from Association of Mutual Funds in India, multi-cap funds recorded net inflows of ₹3,806 crore in April 2026, contributing nearly 10% of total inflows into equity mutual funds during the month. The category currently manages assets worth over ₹2.28 lakh crore.
The trend comes at a time when Indian equity markets are navigating heightened uncertainty driven by rising crude oil prices, persistent FPI outflows, currency pressure, and geopolitical tensions. While benchmark indices such as the Nifty 50 and Sensex have remained under pressure, broader markets have continued to outperform, with the Nifty Midcap 100 touching fresh highs.
Current market environment are witnessing rapid rotation between large-cap defensives and broader market growth themes, making diversified investment strategies increasingly relevant. Unlike category-specific funds that remain concentrated in one segment of the market, multi-cap funds are mandated to allocate across large-cap, mid-cap, and small-cap stocks, allowing fund managers to dynamically capture opportunities across market capitalisations.
The category offers three key advantages in the current environment: diversification across sectors and market caps, participation in high-growth mid- and small-cap opportunities, and relative stability through large-cap exposure.
Performance across the category has also remained competitive despite market volatility. According to data from Value Research as on May 27, 2026, several multi-cap funds delivered healthy one-year returns.
Groww Mutual Fund’s Groww Multicap Fund emerged as the top-performing fund in the category on a one-year basis with returns of 16.6%. Other notable performers included Bank of India Multi Cap Fund, Tata Multicap Fund, Mahindra Manulife Multi Cap Fund, and ITI Multi Cap Fund.
Market participants say the strong performance highlights how agile allocation across market segments is becoming increasingly important in the current environment, especially as leadership across sectors and market caps continues to shift rapidly.
Despite accounting for only around 6.4% of total equity mutual fund assets, multi-cap funds contributed nearly 10% of equity inflows in April 2026, highlighting rising investor preference for flexible allocation strategies amid uncertain market conditions.
Top-10 Equity Funds in Multi-cap Category
Source: Value Research
As on 27th May 2026
| Sr No. | Funds | 1 Yr Ret (%) | 1 Yr Rank | Expense Ratio (%) | Launch | Net Assets (Cr) |
| 1 | Groww Multicap Fund – Direct Plan | 16.60 | 1/36 | 1.00 | 2024-12-16 | 489.00 |
| 2 | Bank of India Multi Cap Fund – Direct Plan | 11.51 | 2/36 | 0.92 | 2023-03-03 | 1,074 |
| 3 | Tata Multicap Fund – Direct Plan | 9.71 | 3/36 | 0.64 | 2023-02-02 | 3,216 |
| 4 | Mahindra Manulife Multi Cap Fund – Direct Plan | 9.68 | 4/36 | 1.58 | 2017-05-11 | 6,439 |
| 5 | ITI Multi Cap Fund – Direct Plan | 9.63 | 5/36 | 1.23 | 2019-05-15 | 1,365 |
| 6 | Union Multicap Fund – Direct Plan | 8.80 | 6/36 | 1.61 | 2022-12-19 | 1,329 |
| 7 | ICICI Prudential Multicap Fund – Direct Plan | 8.33 | 7/36 | 0.92 | 2013-01-01 | 16,997 |
| 8 | HSBC Multi Cap Fund – Direct Plan | 7.59 | 8/36 | 0.96 | 2023-01-30 | 5,500 |
| 9 | PGIM India Multi Cap Fund – Direct Plan | 7.56 | 9/36 | 0.76 | 2024-09-10 | 418.00 |
| 10 | WhiteOak Capital Multi Cap Fund – Direct Plan | 7.45 | 10/36 | 0.85 | 2023-09-22 | 3,421 |