3 best multi cap mutual funds: These schemes beat the benchmark index returns in the past five years

Before investing in a mutual fund scheme, it is seen imperative to weigh a number of factors beforehand such as the category of fund, macroeconomic factors, reputation of fund manager, and importantly – the past returns delivered by the scheme.

In case you are planning to invest in multi-cap mutual funds, you may want to prioritise the ones which have given good returns consistently for the past five years or so. Here, we shortlist the ones that have managed to beat the benchmark index returns.

What are multi cap funds?

Multi cap mutual funds refer to mutual fund schemes which are meant to invest a minimum of 65 percent of their assets in equity and equity-related instruments with investment in stocks of different sectors and segments of the market.

They are also known as diversified equity funds and diversification minimises the risk of high exposure to a few stocks, sectors and segments.

There are 22 schemes in this category with total assets under management (AUMs) of ₹93,756 crore as on Sept 30, 2023. This was considerably higher than 14 schemes that existed a year ago as on Sep 30, 2022 with total AUMs of ₹62,435 crore,

Here, we zero in on a few schemes which managed to beat the benchmark index returns in the past five years.

(Source: AMFI; data as on Oct 25, 2023)

Here we give a lowdown on the top performing schemes in the category of multi cap funds:

1. Quant Active Fund: The scheme was launched on Feb 12, 2001, and has delivered 19 percent returns since inception. The key constituent stocks are Treps, HDFC Bank, RIL, Aurobindo Pharma and State Bank of India. Its AUMs stand at ₹503 crore.

2. Mahindra Manulife Multi Cap Fund: It was launched on May 11, 2017, and has delivered an annualised return of 15.42 percent since inception.

The key constituent stocks are HDFC Bank, RIL, Tech Mahindra, Titagarh Rail Systems and Birlasoft. Its AUMs amount to ₹2,120 crore.

3. Nippon India Multi Cap Fund: It was launched on March 28, 2005 and has delivered an annualised return of 17.80 percent since its inception.

Its key constituent stocks are HDFC Bank, Linde India, EIH, Axis Bank and ICICI Bank. The AUMs of the scheme are ₹20,192 crore.