Multi-cap mutual funds offer balanced equity exposure by investing across large, mid, and small-cap stocks, mandated at 25% each. This strategy aims to reduce risk while enhancing returns. Recent performance highlights Nippon India Multi Cap Fund, Axis Multicap Fund, and ICICI Prudential Multicap Fund as top performers, showcasing strong CAGRs and excellent risk-adjusted metrics, making them compelling choices for investors with a moderate to high-risk appetite and a medium to long-term horizon.