Last Updated on Jul 30, 2024 by Anjali Chourasiya
Multi cap funds offer the stability of large-cap funds and the multibagger potential of small-cap funds while keeping the risk exposure moderate. Like flexi-cap funds, multi cap fund managers invest in companies across different market capitalisations evenly. If you’re looking to explore multi cap funds, here’s the list of best multi cap funds derived using Tickertape Mutual Fund Screener.
Table of Contents
Best Multi cap funds in India
| Mutual fund plan | AUM (Rs. in cr.) | CAGR 5Y (%) | CAGR 3Y (%) | Expense Ratio (%) | Volatility (%) | Minimum Lumpsum (Rs.) |
| Quant Active Fund | 5,688.19 | 25.82 | 33.05 | 0.77 | 13.64 | 5,000 |
| Kotak India Growth Fund-Sr 4 | 114.36 | 24.11 | 29.85 | 0.34 | 9.91 | 0 |
| Mahindra Manulife Multi Cap Fund | 2,119.98 | 22.99 | 31.28 | 0.43 | 11.52 | 1,000 |
| Nippon India Multi Cap Fund | 20,930.45 | 20.11 | 37.88 | 0.97 | 9.97 | 100 |
| Baroda BNP Paribas Multi Cap Fund | 1,881.30 | 18.43 | 26.70 | 1.12 | 9.26 | 5,000 |
| Invesco India Multicap Fund | 2,695.18 | 17.73 | 26.57 | 0.71 | 9.42 | 1,000 |
| Sundaram Multi Cap Fund | 2,098.70 | 17.08 | 26.46 | 0.94 | 8.48 | 100 |
| ICICI Pru Multicap Fund | 8,837.36 | 16.55 | 28.47 | 1.03 | 8.75 | 5,000 |
| ITI Multi-Cap Fund | 664.67 | 0.00 | 22.57 | 0.5 | 10.37 | 1,000 |
Note: The above information is dated 11th October 2023. The parameters used to filter the list of top flexi cap funds on Tickertape’s Mutual Fund Screener are:
- Category > Equity > Multi Cap Fund
- Plan – Growth
- 5Y CAGR – Set high to low
Taxation on Mulitcap Mutual Funds as per the 2024 Budget
Since multi cap funds fall under the category of equity funds, they are subject to the same taxation rules as other equity mutual funds. The Union Budget 2024 has introduced significant changes to the taxation of equity mutual funds, simplifying the tax structure while altering rates and benefits. Here is a detailed breakdown of the new tax rules:
Short-Term Capital Gains (STCG)
If you hold equity mutual funds for less than a year, the gains from these investments are classified as short-term capital gains. According to the new budget, these gains are now taxed at a rate of 20%, which has been increased from the previous rate of 15%.
Long-Term Capital Gains (LTCG)
For equity mutual funds held for more than a year, the gains are considered long-term capital gains. The key points to note under the new budget are:
- Tax-Free Limit: Gains up to Rs. 1.25 lakh in a financial year remain tax-free. This limit has been increased from the previous threshold of Rs. 1 lakh.
- Tax Rate: Any gains above Rs. 1.25 lakh are taxed at a flat rate of 12.5%. It was previously taxed at 10%.
- Indexation: It’s important to note that the benefit of indexation, which previously allowed investors to adjust the purchase price of their assets for inflation, has been removed for all asset classes, including equity mutual funds.
Indexation is a method used to adjust the purchase price of an asset (like property or gold) for inflation over the years. This adjusted price is then used to calculate capital gains. Previously, long-term capital gains from selling property, gold, or other unlisted assets were taxed at 20%, but you could use indexation to reduce your taxable profit. The new rule simplifies the tax structure by setting a flat 12.5% tax rate for all long-term capital gains. However, it removes the indexation benefit.
Summary
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
- No Indexation Benefit: This change affects the overall tax liability, potentially increasing it for long-term investors.
Advantages of investing in multi cap funds
- Portfolio diversification – Fund managers of multi cap funds invest across large, small, and mid-cap companies.
- Minimises risk – Since the funds are invested across different market capitalisations, multi cap funds minimise the risk associated with the investment.
- Option of buying – You can invest in both – lumpsum and SIP investment modes, whichever way you’re comfortable with.
- Optimum returns – Since the mutual fund manager consistently updates the multi cap mutual fund portfolio, an investor can enjoy optimum returns while minimising the risks.
Who should invest in multi cap funds?
Investors aiming for high growth with lower market risk should explore multi cap mutual funds. To identify the best multi cap mutual fund, consider factors like investment horizon, goals, and risk tolerance.
Moreover, as these funds offer diverse asset allocations, selecting the right one is crucial for achieving financial objectives. Therefore, with Tickertape Mutual Fund Screener, you can evaluate the performance of multi cap funds on different fundamental criteria and identify the best multi cap fund which aligns with your financial objectives.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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