4 best multi cap mutual funds gave over 20% CAGR return in the past 5 years. Should you invest?

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mutual fund scheme, investors often compare different schemes offered by fund houses, particularly their historical returns. Although historical returns of a scheme do not guarantee its future performance, they significantly influence the decision of investors in more ways than one. Without much ado, here we list out the top-performing multi cap schemes which delivered more than 20 percent return in the past 5 years.

Let us first understand what multi cap mutual funds are. They invest a minimum of 75 percent in equity & equity related instruments with 25 percent in each of the three categories of market capitalization i.e., small cap, mid cap and large cap. They are also known as diversified equity funds as they invest across stocks of different sectors and segments of the market.

There are 24 multi cap schemes with total AUM of ₹1.18 lakh crore, shows the Jan 31, 2024 AMFI data. (Source: AMFI; return as on Feb 29, 2024) As we can see in the table above, the highest return of 29.56 percent was delivered by Quant Active Fund whereas the lowest (among the top performing schemes) was given by Nippon India Multi Cap Fund that delivered 21 percent return in the past five years. Baroda BNP Paribas Multi Cap Fund: It was launched on Sept 12, 2003.

The scheme's assets under management (AUM) amount to ₹2,195 crore. The scheme has given a return of 15.09 percent since inception. Mahindra Manulife Multi Cap Fund: It was launched on May 11, 2017.

Total assets under management (AUM) amount to ₹2,936 crore. Key constituent stocks are Coal India, Canara Bank, Hindustan Petroleum, NTPC, L&T, Tata Power and TCS. Nippon India Multi Cap Fund: It was launched on March 28, 2005.