Multi-Cap Funds Outperform Large-Caps With Lower Volatility Than Small-Caps
· Business · Economic Times, Bloomberg
Multi-cap mutual funds delivered an annualised return of 15.53% between April 2005 and July 2026, according to a WhiteOak Capital study. This performance surpassed the 13.99% return recorded by large-cap funds during the same 21-year period. While multi-cap funds exhibited slightly higher volatility than large-caps, they maintained lower risk levels compared to mid- and small-cap segments. Data shows multi-cap funds recorded a 66.8% drawdown, significantly lower than the 75.6% and 72.9% drawdowns seen in small- and mid-cap funds respectively. Wealth managers in Mumbai suggest these funds simplify investment decisions by eliminating the need for investors to time entries across different market segments.
Why it matters
Multi-cap funds offer retail investors a balanced strategy that captures growth across market segments while providing a buffer against the higher volatility typically associated with mid- and small-cap stocks.
Read the original report — Economic Times
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