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

With equity markets under pressure in 2026, some flexi-cap and multi-cap mutual funds have managed to stay in positive territory across multiple time horizons. A closer look at their returns across 1, 3, and 5 years reveals how the two categories compare and which schemes stand out.

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.

How have flexi-cap and multi-cap funds performed?

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.