Flexi-cap vs multi-cap mutual fund returns race 2026: Which category leads across 1, 3 and 5 years? Check top schemes

Flexi-cap and multi-cap funds are both types of equity mutual funds, but they differ in their portfolio composition rules. According to SEBI regulations, flexi-cap funds must invest at least 65% of their assets in equity and equity-related instruments.

However, multi-cap funds must invest at least 75% in equities, with a minimum allocation of 25% each to large-cap, mid-cap and small-cap stocks.

This means flexi-cap fund managers can allocate their equity portfolios across market capitalisations based on their investment strategy, while multi-cap fund managers must maintain the prescribed allocation to all three segments.

Here’s how the two categories performed over one, three and five years, and which schemes delivered consistent positive returns across all three periods.

The Nifty 500, a key benchmark for diversified equity funds, is down more than 9% as of 28 October 2026. In the 1-year period, flexi-cap funds delivered average category returns of -5.36%, while multi-cap funds recorded -3.58%.

Over 3 years, flexi-cap funds returned 11.25%, compared with 12.75% for multi-cap funds. Over 5 years, the respective returns stood at 8.72% and 10.50%.

Multi-cap funds have outperformed flexi-cap funds across all three periods on a category-average basis. However, individual schemes have delivered different results.

Against this backdrop, it is worth examining which schemes have generated positive returns over the one-, three-, and five-year periods. Consistency across these horizons can help investors assess how funds have performed across different market conditions.

According to the latest AMFI monthly data, there are 47 flexi-cap funds and 33 multi-cap schemes as of 30 September 2026.

The table below lists the top 5 flexi-cap funds by 1-year returns. It includes only those schemes that have also delivered positive returns over the 3-year and 5-year periods.

Source: Morningstar; Direct-growth plans; Returns as of 27 October 2026; Only schemes with available data across all three periods are included.

Quant Flexi Cap Fund topped the list on one-year returns at 2.98%. However, Bank of India Flexi Cap Fund recorded the highest three-year and five-year returns among these five schemes, at 18.17% and 14.61%, respectively.

Only four multi-cap funds have given positive one-year returns with the available performance figures across all three time horizons.

ITI Multi Cap Fund led the list on one-year returns at 5.80%, while Mahindra Manulife Multi Cap Fund delivered the highest five-year return at 13.20%. ITI Multi Cap Fund also recorded the highest three-year return among these four schemes, at 16.04%.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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