5 Best Multi Cap Mutual Funds in 2025

Hey! If you’re trying to shortlist the top 5 best multi cap mutual funds in 2025, let’s do this the smart way—like two friends grabbing chai and comparing notes. I’ll keep the jargon light but the research tight: we’ll focus on rolling returns (not just point-to-point numbers), see who beats their benchmark and category, and then translate all of it into practical picks for anyone investing for 7+ years.

Before the list, a 20-second refresher: a multi cap fund (per SEBI) keeps at least 25% each in large, mid and small caps. In English: you get a built-in blend of stability (large), growth (mid) and rocket fuel (small). The official yardstick most AMCs use for this category is the Nifty 500 Multicap 50:25:25 TRI. If a fund regularly beats this benchmark and its category average on rolling windows, it earns serious credibility for long-term SIPs.

Key Takeaways from the topic on Top 5 Best Multi Cap Mutual Funds in 2025:

Multi-cap mutual funds provide balanced exposure across large-cap, mid-cap, and small-cap stocks, making them ideal for long-term wealth building.

The top 5 funds were selected based on 3-year rolling returns, benchmark-beating performance, and consistency across categories.

These funds have a proven record of delivering superior returns compared to their benchmarks over the last 7+ years, making them suitable for middle-class investors.

Investing through SIPs can help investors take advantage of market volatility while building wealth steadily.

These funds are best for long-term investors (7+ years) seeking growth and diversification without active stock-picking stress.

Regular monitoring of fund performance and category ranking is crucial to stay ahead of market shifts.

Table of Contents

How I picked the top 5 best multi cap mutual funds in 2025

3-Year Rolling Returns & Medians: I leaned on return-analysis pages that show “Any 3Y” rolling medians—this tells us how the fund performed across many start dates, not just a lucky one.

Benchmark & Category Beat: I favoured funds where the 3Y numbers (rolling/trailing) beat the Nifty 500 Multicap 50:25:25 TRI and/or category averages.

Consistency & Size: When possible, I cross-checked commentary around return consistency and alpha from reliable aggregators.

Suitability for 7+ Years: I looked for funds whose rolling-return dashboards indicate strong odds of double-digit returns when held longer. (You’ll see SIP/rolling notes under each fund.)

The Shortlist — Top 5 Best Multi Cap Mutual Funds in 2025

1) Kotak Multicap Fund (Direct-Growth)

Why it’s here: Kotak’s page highlights outperformance over the last 3 years, and its return-analysis shows a robust 3Y median rolling return that stands well above category averages. On a dedicated breakdown, “Any 3Y” sits around the mid-20s (approx 25.4% median), vs category medians in the low-to-mid teens, signaling strong cycle handling across many start dates.

Benchmark context: Category/benchmark used is the Nifty 500 Multicap 50:25:25 TRI—that’s the correct yardstick for multi cap funds.

What it means for a 7+ year investor: With rolling outperformance and healthy “Any 3Y” medians, this one fits SIPs meant to ride full market cycles (bull->correction->recovery).

2) Invesco India Multicap Fund (Direct-Growth)

Why it’s here: The fund’s rolling return analysis shows 3Y around ~25% (median) against category in the ~24% zone on the same dashboard, indicating competitive consistency. Trailing windows also look solid across 5Y/10Y.

Benchmark/peer checks: ET pages display rolling and trailing comparisons plus category ranks, making it easier to gauge if performance is a one-off or persistent.

What it means for a 7+ year investor: Competitive 3Y rolling plus steady longer-tenor performance patterns are exactly what we want before committing long SIPs.

3) Mahindra Manulife Multi Cap Fund (Direct-Growth)

Why it’s here: The rolling return panel shows “Any 3Y” ≈ 24.5% (with other rolling windows also strong), clearly outpacing the category median over identical periods. It also indicates that 5-year SIP rolling windows have historically stayed >8% p.a., which is a nice sanity check.

Benchmark alignment: Fund factsheets/trackers list Nifty 500 Multicap 50:25:25 TRI as its benchmark—so we’re comparing apples to apples.

What it means for a 7+ year investor: Strong rolling behaviour suggests good cycle capture; this is especially helpful for middle-class SIP investors averaging through volatility.

4) Nippon India Multi Cap Fund (Direct-Growth)

Why it’s here: On ETMoney, the 3Y trailing sits around ~23.45%, nicely ahead of the multi cap category’s ~19.8% on the same date stamp—good evidence of recent outperformance vs peers. The page also flags high alpha vs benchmark (a sign of active value-add, albeit with higher volatility).

Rolling/consistency call-outs: ETMoney’s commentary notes strong return consistency and significant longer-term outperformance history for this scheme within the multi cap pack.

What it means for a 7+ year investor: Expect a bumpier ride (higher beta/std dev), but the return edge can reward patient SIPs.

5) HDFC Multi Cap Fund (Direct-Growth)

Why it’s here: HDFC’s multi cap has shown above-average consistency with a strong since-launch CAGR and fund-house discipline in stock selection across caps. On aggregators, it shows credible risk-control commentary and suitability for long-term allocations, while being benchmarked correctly to Nifty 500 Multicap 50:25:25 TRI.

What it means for a 7+ year investor: A solid core holding candidate for SIPs where stability + process matters alongside performance.

Close Contenders You Might Also Track

SBI Multicap Fund (Direct-Growth):

Rolling panel shows Any 3Y ~19.4% median—respectable, though a shade behind the top five above. If you prefer SBI’s style and portfolio, you can still consider it as a satellite SIP.

ICICI Prudential Multicap Fund:

3Y trailing ~19.7%, with numbers marginally above category and benchmark on some dashboards; it’s a quality AMC with good downside control.

Comparison table:

Fund (Direct-Growth)	Benchmark	3Y snapshot*	Rolling return notes	Category context	What stands out	Source
Kotak Multicap Fund	Nifty 500 Multicap 50:25:25 TRI	Any 3Y median ≈ 25.4%	Consistently high 3Y rolling medians vs category	Beats category medians on 3Y windows	Strong 3Y outperformance streak	ETMoney Return Analysis
Invesco India Multicap Fund	Nifty 500 Multicap 50:25:25 TRI	Any 3Y ≈ 25.1%	Competitive 3Y and 5Y rolling profiles	Top-quartile tendencies on multiple windows	Balanced cycle capture	ETMoney + ET Funds pages
Mahindra Manulife Multi Cap Fund	Nifty 500 Multicap 50:25:25 TRI	Any 3Y ≈ 24.5% (panel also shows strong 5Y/7Y)	SIP 5Y rolling >8% historically	Beats category medians in several windows	Good multi-window resilience	ETMoney Return Analysis
Nippon India Multi Cap Fund	Nifty 500 Multicap 50:25:25 TRI	3Y trailing ≈ 23.45% (vs category ~19.8%)	Strong alpha but higher volatility	Beats category on multiple trailing windows	Return edge with active bets	ETMoney page
HDFC Multi Cap Fund	Nifty 500 Multicap 50:25:25 TRI	Since-launch CAGR near ~20%; 1Y soft patch recently	Above-average consistency markers	Competitive vs category over cycles	Process-driven core holding	ETMoney + AMC page

*Snapshots are indicative and rounded from cited dashboards as of early Sep 2025; always re-check latest numbers before investing.

Fund-by-fund, friend-style breakdown (what you should really care about)

Kotak Multicap Fund — “the consistent sprinter”

Rolling Return Muscle: That Any 3Y median ≈ 25.4% stands out. It means across hundreds of 3-year windows, you didn’t need perfect timing to get solid returns.
Benchmark Fit: Benchmarked to Nifty 500 Multicap 50:25:25 TRI, exactly what we want for a pure multi cap.
Reality Check: Hot streaks cool. But with rolling medians firmly above category, SIPs can keep compounding even if a few months feel meh.
My friend-to-friend tip: A top candidate for the core of your top 5 best multi cap mutual funds in 2025 basket if you value consistency over drama.

Invesco India Multicap Fund — “the smooth operator”

Rolling Returns: Any 3Y ≈ 25% with competitive 5Y/10Y bands—this is the kind of durability
Peer Positioning: ET pages show rolling + trailing + category ranks; Invesco tends to land in the better half across time frames.
Tip: If you want a steady hand among the top 5 best multi cap mutual funds in 2025, this one balances growth with control.

Mahindra Manulife Multi Cap Fund — “the cycle rider”

Rolling Strength: Any 3Y ≈ 24.5%, with encouraging 5Y/7Y rolling bands—and a nice SIP stat: 5-year holding windows historically >8% p.a. (i.e., compounding survives corrections).
Benchmark Integrity: Tracks the right multi cap TRI benchmark; disclosures/factsheets line up.
Tip: A great SIP candidate for anyone who wants exposure across caps but hates second-guessing timing. Shortlist it inside your top 5 best multi cap mutual funds in 2025.

Nippon India Multi Cap Fund — “the alpha chaser”

Numbers that Jump: 3Y trailing ~23.45% vs category ~19.8% at the same cut-off—clear evidence of recent outperformance. Alpha is strong; volatility’s higher too.
Friend’s caution: Expect mood swings. If you can handle some chop, this can boost portfolio CAGR over 7-10 years.

HDFC Multi Cap Fund — “the steady core”

Why it’s lovable: Above-average consistency markers and a fund-house process you can rely on. Benchmarked properly; since-launch CAGR is healthy. Reality check: 1Y phases can be soft; that’s normal. Multi cap is a marathon, not a sprin

How to actually use the top 5 best multi cap mutual funds in 2025 for a 7+ year plan

1) Don’t own all five.

Pick 2 (max 3) to avoid duplication—multi caps already hold hundreds of stocks. You don’t need six different kitchens making the same meal.

2) SIP over lump sum (unless valuation unusually attractive).

Multi caps must keep ~25% each in mid and small caps—fantastic for wealth creation but volatile in the short run. SIPs parcel out your risk across time.

3) Split styles.

Pair a consistent roller (Kotak/Invesco/Mahindra) with an alpha-tilted pick (Nippon) or a process-centric core (HDFC). That way, you’re cushioned if one style temporarily underperforms.

4) Give it a full cycle—minimum 7 years.

Rolling data shines over multi-year windows. If you can’t commit 7+ years, a multi cap’s mid/small allocation may test your patience.

5) Rebalance annually (light touch).

If one fund races ahead and becomes >60–65% of your equity SIP bucket, scale new inflows to the others for a quarter or two. No need to churn.

What could go wrong (and how to stay chill)

Mid/Small-Cap drawdowns: 25% mandated allocation to each of mid & small means sharper falls in corrections. SIP through it.
Manager/Style drift: Even with SEBI’s guardrails, funds can lean toward certain themes. Review annually.
Category whipsaws: When small caps run hot, everything looks genius; when they cool, even good funds look sluggish. Rolling returns smooth the story.

A quick word on rolling returns (without the headache)

Rolling returns compute CAGR over every possible start date inside a period—e.g., all 3-year windows from 2017–2025—then look at the median/percentiles. This avoids the “I invested at the peak!” problem. In our sources, dashboards labeled “Any 3Y” and return-analysis panels show precisely that comparison against category medians.

SIP ideas to plug into your plan (examples)

Conservative two-fund core (Rs 10,000/month total):
- Invesco India Multicap – ₹6,000
- HDFC Multi Cap – ₹4,000
  Rationale: high consistency + steady core.
Balanced growth (Rs 12,000/month):
- Kotak Multicap – ₹6,000
- Mahindra Manulife Multi Cap – ₹4,000
- HDFC Multi Cap – ₹2,000
  Rationale: blend a strong rolling performer with a resilient SIP profile and a process-centric anchor.
Aggressive tilt (Rs 12,000/month):
- Nippon India Multi Cap – ₹5,000
- Kotak Multicap – ₹5,000
- Mahindra Manulife Multi Cap – ₹2,000
  Rationale: accept more volatility for potential alpha, but pair it with robust rollers.

(These are illustrations—set amounts to your budget and risk appetite.)

FAQs (asked by every friend ever)

Q1) Are multi caps and flexi caps the same?
Nope. Multi cap funds must hold 25% each in large, mid, small; flexi cap has no such minimums and can move anywhere. Multi caps enforce diversification; flexi caps offer manager freedom.

Q2) Which benchmark should a multi cap use?
Nifty 500 Multicap 50:25:25 TRI—that’s the industry standard most AMCs cite for this category.Yes, but two complementary funds can smooth style risk (e.g., one alpha-tilted + one consistent roller).

Q4) What’s a good SIP horizon?
7–10 years. Rolling returns show the magic shows up over long windows, not quarters.

Q5) Should I stop SIPs if markets correct?
That’s the worst time to stop. Multi caps rely on averaging through corrections to grab future upswings.

Q6) Expense ratios—do they matter?
Yes, over long horizons. But higher expense can be fine if a fund consistently beats the benchmark (net of fees). We looked for that trait in our top 5 best multi cap mutual funds in 2025 picks.

Q7) Do I need to check portfolios every month?
No. Review once a year: performance vs benchmark/category and any big manager/theme shifts.

Final friend-note (so you actually act):

If you want a simple, powerful equity core for your long-term goals, split your SIPs across two of these top 5 best multi cap mutual funds in 2025. Lock in 7–10 years, automate the SIPs, and spend your mental energy on earning more and staying invested. The data we used—rolling return panels, category comparisons, and benchmark alignment—is built to reduce regret from unlucky timing. Start the SIP; perfect timing is a myth, but consistency isn’t.