Multi-cap mutual funds recorded a high of ₹3,859.55 crore in net inflows during September 2026, as investors sought diversification during market volatility. While inflows grew, different fund houses followed distinct strategies, with some favoring aggressive small-cap bets and others prioritizing defensive large-cap holdings or concentrated stock portfolios.
The multi-cap mutual fund category saw a strong surge in interest during September 2026, attracting ₹3,859.55 crore from investors. According to data from the Association of Mutual Funds in India (AMFI), this was the highest monthly inflow for the segment throughout the year, suggesting that investors were actively looking for diversified portfolios during a period of stock market turbulence. While the broader market faced pressure, the demand for this fund category remained resilient.
Different funds managed their portfolios in unique ways, which led to varying results for investors. For instance, Kotak Multi Cap attracted the most new money in September, with net inflows of ₹613.94 crore. This fund also showed more resilience when the market dipped, experiencing a smaller percentage decline than several of its peers. Its strategy is more focused, holding only about 72 stocks, which makes it a high-conviction approach compared to the much larger lists of stocks held by some other funds.
Other major players followed different paths. Axis Multicap has generally delivered stronger returns over the past year, thanks in part to a strategy that includes about 30% exposure to smaller companies and higher cash reserves. This aggressive approach aims for higher growth but can lead to different volatility patterns compared to more conservative funds. Meanwhile, Nippon India Multi Cap manages the largest amount of assets in this category at over ₹53,700 crore. Its approach has a heavier tilt toward large-cap companies, accounting for more than 43% of its portfolio.
These differences are important for investors to understand. A fund that holds a large number of stocks and keeps a large-cap tilt, like Nippon India, may behave differently than a fund that concentrates its bets in fewer companies, like Kotak, or one that leans heavily into small-cap stocks, like Axis. Additionally, portfolio turnover—the frequency with which a fund manager buys and sells stocks—also varies. For example, Axis reported a turnover of 57%, indicating more active trading, while Nippon India maintained a more stable portfolio with a turnover of 38%.
Investors should look beyond the inflow numbers when assessing these funds. It is helpful to consider whether a fund’s current strategy aligns with one’s own risk tolerance and time horizon. A fund that performs well in a rising market might be more volatile when the market falls, and vice versa. Looking ahead, investors may want to monitor whether these funds maintain their current portfolio concentration and turnover levels, as these factors often determine how a fund performs when market conditions change.