Equity Mutual Funds have witnessed significant volatility over the past few years. Despite changing market conditions, some schemes have managed to deliver positive returns consistently. Among them, equity multi cap funds have stood out by generating gains across different market cycles. What are Multi Cap Funds? Multi cap mutual funds invest across Large-Cap, Mid-Cap and Small-Cap stocks.
As per SEBI regulations, these schemes must allocate at least 25 per cent of their portfolio to each of the three market capitalisation segments, while the remaining 25 per cent can be invested at the fund manager's discretion. This approach offers investors diversified exposure across the equity market through a single fund.
For investors evaluating consistency, calendar-year performance can provide valuable insights. Based on annual return data as on July 23, 2026, only a handful of regular plan equity multi cap funds have delivered positive returns in each of the last five calendar years (2022-2026).
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Best Equity Multi Cap Funds With Positive Returns in the Last Five Years
Fund 2026 (in per cent) 2025 (in per cent) 2024 (in per cent) 2023 (in per cent) 2022 (in per cent)
ICICI Prudential Multi Cap Fund 4.15 5.72 20.68 35.38 4.65
Mahindra Manulife Multi Cap Fund 4.71 3.37 23.44 34.23 1.64
ITI Multi Cap Fund 4.53 2.73 20.19 38.54 2.74
Source: Data as on July 23, 2026. Returns are for Regular Growth plans.
Why Consistency Matters
A fund that generates positive returns across multiple years demonstrates its ability to navigate different market conditions. While a single year of strong performance may be driven by favourable market trends, consistent returns over several years often indicate disciplined portfolio management and a well-defined investment strategy. However, consistency should be viewed alongside other important parameters such as portfolio quality, risk management and long-term investment approach. Investors should avoid selecting a mutual fund solely based on its past performance. Historical returns provide an indication of how a scheme has performed across market cycles, but they do not guarantee similar performance in the future.
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Takeaway
Before investing, investors should conduct thorough research and evaluate factors such as the fund's investment strategy, portfolio composition, risk-adjusted returns, expense ratio, fund manager's track record and whether the scheme aligns with their financial goals, investment horizon and risk appetite.
(“Disclaimer: This article uses information originally published by Dalal Street Investment Journal (DSIJ). The views expressed are those of the original authors and not necessarily of ABP Network Pvt. Ltd. This content is provided for general informational and educational purposes only and should not be construed as investment, financial, legal or tax advice. Readers are advised to conduct their own research and/or consult a qualified financial advisor before making any investment decisions. This content is for informational purposes only and should not be treated as investment advice. ABP Network, its employees and associates shall not be responsible or liable for any losses or damages arising directly or indirectly from the use of or reliance on this article or any information contained herein.”)