The category recorded inflows every month during the period, with June alone witnessing ₹3,070 crore of net investments.
April saw the highest monthly inflow at ₹3,806 crore, followed by March at ₹2,982 crore.
| Month | Net inflow |
| January | ₹1,995 crore |
| February | ₹1,934 crore |
| March | ₹2,982 crore |
| April | ₹3,806 crore |
| May | ₹2,291 crore |
| June | ₹3,070 crore |
(Source: AMFI)
Multi-cap funds invest across large-cap, mid-cap and small-cap companies, allowing investors to participate across different segments of the equity market through a single fund.
Under SEBI rules, multi-cap funds must maintain a minimum allocation of 25% each to large-cap, mid-cap and small-cap stocks. However, fund managers have flexibility in selecting stocks and sectors within these categories, leading to differences in portfolio strategy and returns.
How multi-cap funds performed
The strong inflows came despite differences in scheme performance. According to Value Research data as of July 28, 2026, most multi-cap schemes delivered positive one-year returns.
Groww Multicap Direct was the top-performing scheme with a one-year return of 15.38%, followed by Trust MF Multicap Direct at 15.18% and Bank of India Multicap Direct at 13.18%.
| Fund | One-year return |
| Groww Multicap Direct | 15.38% |
| Trust MF Multicap Direct | 15.18% |
| Bank of India Multicap Direct | 13.18% |
| Union Multicap Direct | 10.24% |
| Tata Multicap Direct | 9.95% |
(Source: AMFI)
However, not all schemes delivered gains. Samco Multi Cap Fund declined 9.19% during the period, while SBI Multicap Fund, HDFC Multi Cap Fund and Invesco India Multicap Fund also posted negative returns.
What should investors consider before investing?
Multi-cap funds can help investors diversify across companies of different sizes, but they also carry equity market risks. Since these funds have mandatory exposure to mid- and small-cap stocks, their returns may be more volatile compared with categories focused only on large companies.
Investors should consider their financial goals, investment horizon and risk appetite before choosing a multi-cap fund. Short-term performance rankings may change depending on market cycles, and past returns do not guarantee future performance.
