New kid, big punch: Canara Robeco Multi Cap fund delivers 21.9% CAGR, beats benchmarks

The Canara Robeco Multi Cap Fund, launched in July 2023, has swiftly emerged as one of the more balanced and consistent performers in the multi-cap mutual fund category. With an Assets Under Management (AUM) of Rs 4,547.62 crore as of July 31, 2025, the scheme seeks long-term capital appreciation through a diversified portfolio spanning large-, mid-, and small-cap stocks. It tracks the Nifty 500 Multicap 50:25:25 TRI benchmark, offering investors exposure across market segments.

The fund offers two plans — Direct and Regular — with different expense structures. The Direct Plan, having a lower expense ratio (around 0.6–0.9%), has notably outperformed the Regular Plan, which carries higher costs (1.5–2%). Over the last year, the Direct Plan returned 2.55% compared with 1.12% for the Regular Plan, illustrating how cost efficiency enhances long-term returns.

Despite market volatility over the past year, the fund has delivered strong risk-adjusted returns. Since inception, the Direct Plan’s CAGR stands at 21.89%, comfortably beating its benchmark’s 19.78%, while the 1-year return of 2.55% also outpaced the benchmark’s -1.86%. This reflects positive alpha generation — a sign of superior stock-picking and disciplined asset allocation.

When compared against both the Nifty 500 Multicap Index and the BSE Sensex TRI, the fund has maintained its edge. The Direct Plan’s performance — 21.89% since inception versus 19.78% and 11.50%, respectively for the benchmarks — demonstrates its ability to outperform across market conditions.

The fund is co-managed by Shridatta Bhandwaldar and Vishal Mishra, both seasoned managers with expertise in multi-cap and large-cap strategies. Their investment approach focuses on quality growth stocks and maintaining valuation discipline, ensuring a balance between aggression and risk control.

While the portfolio turnover ratio isn’t disclosed, the fund’s moderate trading activity (estimated between 40–60%) indicates active management without excessive churn. This approach enables tactical moves while retaining long-term conviction in core holdings.

In comparison to peers, the fund has been a top-quartile performer in its category. Its since-inception return of 21.89% stands ahead of the multi-cap average of 18–19%, signaling superior consistency.

The fund’s portfolio composition remains diversified — 43.77% in large caps, 28.81% in mid caps, and 25.05% in small caps, with the rest in cash or debt. Financials lead the sectoral exposure at 17.46%, followed by pharma (7.18%), IT (5.96%), and consumer durables (5.39%). Top holdings include HDFC Bank, ICICI Bank, Reliance Industries, Infosys, L&T, and Ajanta Pharma.

From an optimisation perspective, analysts suggest maintaining roughly half the portfolio in mid- and small-cap stocks for long-term alpha generation while adding defensive plays like FMCG and healthcare to reduce cyclicality.

Peer comparison

Multi-cap mutual fund segment has delivered strong, broad-based gains across timeframes, reflecting the market’s resilience and sectoral rotation. From short-term momentum plays to long-term wealth creators, different funds have led in different periods.

Top Multi-Cap                                                         Performers
Time Period    Top Performing Fund                       Return (%)
6 Months    Groww Multicap Fund – Direct Plan    24.04%
1 Year    Motilal Oswal Multi Cap Fund – Direct Plan    9.83%
3 Years    Kotak Multicap Fund – Direct Plan    25.55%
5 Years    Nippon India Multi Cap Fund – Direct Plan    30.93%

6-month performance: Groww Multicap Fund – Direct Plan (24.04%)

Groww Multicap Fund has emerged as the best short-term performer, reflecting strong exposure to mid- and small-cap segments that benefited from the recent market rally. The fund’s active reallocation strategy appears to have capitalized on momentum in financials, manufacturing, and consumer sectors. However, such sharp gains also suggest elevated volatility and a higher risk profile in shorter durations.

1-year performance: Motilal Oswal Multi Cap Fund – Direct Plan (9.83%)

Motilal Oswal’s Multi Cap Fund tops the one-year chart, thanks to its focus on “buy-right, sit-tight” philosophy emphasizing quality large- and mid-cap businesses. The fund’s allocation to structural growth themes — particularly in private banks, specialty chemicals, and capital goods — has cushioned returns through volatile phases. While moderate in percentage terms, the performance reflects stability and disciplined risk management amid broader market fluctuations.

3-year performance: Kotak Multicap Fund – Direct Plan (25.55%)

Kotak Multicap Fund leads over a three-year horizon, showcasing consistent alpha generation through a balanced mix of large, mid, and small caps. Its diversified sectoral approach and strong stock selection strategy have delivered superior risk-adjusted returns. The fund’s emphasis on earnings visibility and balance-sheet quality has allowed it to outperform peers over medium-term cycles, making it a reliable choice for investors seeking steady compounding.

5-year performance: Nippon India Multi Cap Fund – Direct Plan (30.93%)

Over the five-year period, Nippon India Multi Cap Fund stands out with the highest long-term returns. Its diversified approach and high conviction in cyclical recovery plays — especially in industrials, auto ancillaries, and financials — have paid off significantly. The fund’s ability to participate in market upswings while maintaining broad exposure across sectors highlights its long-term wealth creation potential.