1. What Is Nippon India Multi Cap Fund?
1.1 Definition and Strategy
- Nippon India Multi Cap Fund is an open-ended equity scheme that invests across large-cap, mid-cap, and small-cap stocks. Nippon India Mutual Fund+2Nippon India Mutual Fund+2
- The fund follows an “opportunistic investment style” with a long-term focus. Nippon India Mutual Fund
- According to Nippon India Multi Cap Fund presentation, they invest with high conviction, taking meaningful stakes in businesses. Nippon India Mutual Fund
- As per its product note, fund managers can optimize risk by dynamically allocating among different market caps. Nippon India Mutual Fund
1.2 Fund Management of Nippon India Multi Cap Fund
- Fund managers: As per the fact sheet, the fund is managed by Dhrumil Shah (since Jan 2023) and Meenakshi Dawar (since May 2018). Nippon India Mutual Fund
- Inception: The regular plan was launched on March 28, 2005, per Nippon’s fact sheet. Nippon India Mutual Fund
1.3 Philosophy & Benchmark of Nippon India Multi Cap Fund
- The fund’s benchmark is Nifty 500 Multicap 50:25:25 Total Return Index. AI Bull+2The Economic Times+2
- This 50:25:25 benchmark implies 50% in large-cap, 25% mid-cap, 25% small-cap. The Economic Times+1
- Long-term orientation: Nippon India Multi Cap Fund presentation emphasizes building wealth via business investments rather than short-term price-chasing. Nippon India Mutual Fund
2. Key Facts and Figures in Nippon India Multi Cap Fund
In this section, we dive into real data about Nippon India Multi Cap Fund: AUM, returns, portfolio composition, top holdings, risk metrics, etc.
2.1 Assets Under Management (AUM)
- According to ET Money, the AUM is ₹49,314 crore for the fund. ET Money
- Angel One also lists the AUM as ₹49,313.70 Cr for the direct-growth plan. Angel One
2.2 NAV (Net Asset Value)
- ET Money reports NAV = ₹303.69 (as of Nov 14, 2025). ET Money
- According to Economic Times, in the direct growth plan NAV is ~ ₹335.19 (Nov 19, 2025). The Economic Times
2.3 Expense Ratio in Nippon India Multi Cap Fund
Category : Multi Cap Fund
Fund House : Nippon India Mutual Fund
- NAV : ₹ 335.786 0.18%(as on 20th November, 2025)
Crisil Rating
Above average performance among peers
| Fund Size : ₹ 49313.7 Cr(22.29% of Investment in Category) | Expense Ratio : 0.71%(0.63% Category average) |
- For the direct-growth plan, Economic Times gives an expense ratio of 0.71%. The Economic Times+1
- According to the AIBull, the scheme’s expense ratio is 0.77%. AI Bull
- For regular plan (or older documents), different expense ratios may apply. (Always check the latest scheme documents.)
2.4 Exit Load
- According to Nippon India Multi Cap Fund own product note: There is an exit load of 1% if redeemed within 12 months for units exceeding 10% of investments. AI Bull
- From Angel One: “1% if redeemed or switched out on or before completion of 12 months … Nil after.” Angel One
2.5 Risk Profile
- Risk rating: Very High. ET Money lists the risk as “Very High”. ET Money
- Portfolio turnover ratio: According to Moneycontrol (from their portfolio data), the turnover ratio is 24% (for portfolio as of 31 Oct 2025) which is relatively low compared to category average. Moneycontrol
2.6 Asset Allocation
- According to ET Money (as of Oct 31, 2025):
- Large Cap: 47.87%
- Mid Cap: 25.49%
- Small Cap: 25.53% ET Money
- Equity exposure: ~ 98.89% (very high equity weight). ET Money
2.7 Top Holdings
From ET Money: ET Money
- HDFC Bank Ltd: ~5.42%
- Axis Bank Ltd: ~4.02%
- GE Vernova T&D India Ltd: ~2.95%
- Reliance Industries Ltd: ~2.88%
- (plus many others)
2.8 Sector Allocation
Again from ET Money: ET Money
- Financials: ~21.59%
- Services: ~18.08%
- Capital Goods: ~10.09%
- Healthcare: ~9.08%
- (others as per their fact sheet)
2.9 Past Performance / Returns
Here are some key return metrics (based on different sources):
RETURNS (NAV as on 20th November, 2025)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
|---|---|---|---|---|---|---|
| 1 Week | 13-Nov-25 | 10043.50 | 0.43% | – | 0.60% | 22/33 |
| 1 Month | 20-Oct-25 | 10014.40 | 0.14% | – | 0.74% | 26/33 |
| 3 Month | 20-Aug-25 | 10087.50 | 0.88% | – | 2.80% | 28/33 |
| 6 Month | 20-May-25 | 10687.30 | 6.87% | – | 7.74% | 23/32 |
| YTD | 01-Jan-25 | 10589.70 | 5.90% | – | 4.60% | 12/30 |
| 1 Year | 19-Nov-24 | 10821.50 | 8.21% | 8.19% | 8.32% | 16/29 |
| 2 Year | 20-Nov-23 | 14543.40 | 45.43% | 20.57% | 19.27% | 7/24 |
| 3 Year | 18-Nov-22 | 18795.70 | 87.96% | 23.34% | 20.63% | 3/16 |
| 5 Year | 20-Nov-20 | 35178.40 | 251.78% | 28.59% | 22.98% | 1/9 |
| 10 Year | 20-Nov-15 | 45171.10 | 351.71% | 16.26% | 16.39% | 3/6 |
| Since Inception | 02-Jan-13 | 74645.30 | 646.45% | 16.88% | 16.73% | 20/33 |
- According to Moneycontrol (SIP returns, latest as on Nov 14, 2025):
- 1 Year SIP: Annualized ~ 12.91% for ₹1,000 per month. Moneycontrol
- 2 Year SIP: ~11.69% annualized (Moneycontrol). Moneycontrol
- 3 Year SIP: ~18.47% annualized. Moneycontrol
- 5 Year SIP: ~21.81% annualized. Moneycontrol
- 10 Year SIP: ~18.88% annualized. Moneycontrol
- According toNippon India Multi Cap Fund own product note (June 2025): SIP returns for Regular Plan:
- Since inception: 17.20% p.a.
- 15-year period: 17.50% p.a.
- 10-year: 19.60% p.a.
- 5-year: 26.35% p.a.
- 3-year: 24.09% p.a.
- 1-year: 12.61% p.a. Nippon India Mutual Fund
- From Nippon India Multi Cap Fund fact sheet (March 2025) for Regular plan:
- 1 Year growth of ₹10,000 → ₹11,006 (= 10.06%)
- 3 Year: ₹17,792 (21.22% annual)
- 5 Year: ₹41,610 (33.04%)
- Since Inception: ₹269,265 on ₹10,000 (i.e., ~17.89%) Nippon India Mutual Fund
3. Why Invest in Nippon India Multi Cap Fund — Strengths & Advantages
Here we analyze what makes this fund attractive, and in what scenarios it might suit investors.
3.1 Diversified Across Market Caps
- Because it invests in large, mid, and small-cap stocks, it provides broad diversification — reducing the risk of being overly exposed to only one capitalization segment.
- Flexibility: Fund managers have the freedom to allocate dynamically depending on market conditions. For example, in a strong small-cap rally they could increase small-cap exposure, or reduce when valuations are rich.
3.2 Strong Long-Term Track Record
PORTFOLIO (Updated on 31st Oct,2025)
Portfolio Turnover Ratio : 24.00% | Category average turnover ratio is 350.13%
Fund manager updated portfolio less frequently than peers in last 1 year. (I.e. fund manager held stocks/bonds in the portfolio for longer duration than peers)
Equity Holding : 98.89% | F&O Holdings : 0.00%| Foreign Equity Holdings : 0.00%| Total : 98.89%
No of Stocks : 130 (Category Avg – 84.79) | Large Cap Investments : 34.41%| Mid Cap Investments : 18.67% | Small Cap Investments : 14.42% | Other : 31.39%
- Since inception (2005), the fund has generated ~17.89% CAGR (per Nippon India Multi Cap Fund fact sheet). Nippon India Mutual Fund
- Over 5 years, the fund’s SIP returns (or in-fund growth) have been very strong (Nippon’s own data: ~26.35% for 5-year SIP) Nippon India Mutual Fund
- The fund has beaten or matched its benchmark in many periods, showing its ability to generate alpha. (For example, in product note, scheme vs Nifty 500 Multicap TRI returns). Nippon India Mutual Fund
3.3 Robust AUM – Large Scale
- With AUM above ₹49,000 crore (direct + regular), the fund is very large and popular. ET Money+2The Economic Times+2
- Large AUM can signal investor trust and stability; also means the fund is mature and has scale to manage risk and liquidity.
3.4 Professional Fund Management
- Experienced fund managers (Dhrumil Shah, Meenakshi Dawar) with a long-term philosophy. Nippon India Mutual Fund
- Low turnover ratio (~24%) indicates the fund does not frequently churn its portfolio — consistent with a conviction-based, long-term investment style. Moneycontrol
3.5 Tax Efficiency (Long-Term Gains)
- Equity mutual fund gains: If redeemed after 1 year, it is long-term capital gain (LTCG), taxed at 12.5% (for gains above ₹ 1.25 lakh) as per ET Money. ET Money
- For redemptions before 1 year, short-term capital gains (STCG) tax at 20% applies. Moneycontrol+1
- So holding for longer can be tax-efficient.
3.6 Risk-Return Tradeoff
- Because of diversification, multi-cap funds like this can balance risk and return: small-cap gives growth potential, large-cap gives stability.
- Very high risk: but historically, the returns (especially long-term) have justified the risk for many investors.
4. Risks, Challenges & What to Watch Out For
Even though Nippon India Multi Cap Fund is attractive, there are risks and potential drawbacks. It’s important your blog points them out clearly.
4.1 Market Risk / Equity Volatility
- As with any equity fund, the NAV can fluctuate significantly with market movements. Given its large equity exposure (~98.9%), downturns in equity markets can hit the fund hard. ET Money
- In a falling mid-cap or small-cap market, the fund’s value can be very volatile.
4.2 Concentration Risk
- While diversified across caps, the top holdings are still significantly concentrated in financials (e.g., HDFC Bank, Axis Bank). Angel One+1
- If these top stocks or sectors underperform, the fund could suffer more relative to a more evenly distributed portfolio.
4.3 Exit Load / Liquidity Constraints
- As mentioned, there is an exit load of 1% for certain early redemptions (within 12 months for >10% of units) which penalizes short-term exit. AI Bull
- For investors who might need liquidity, this could be a deterrent.
4.4 Expense Ratio
- While 0.71–0.77% is not extremely high, it’s not the cheapest either. Over very long periods, higher expense ratio can eat into returns.
- Investors should compare with other multi-cap or flexi-cap funds to see if the cost is justified by performance.
4.5 Tax Implications
- Though LTCG is favorable, for frequent redemptions or short-term investors, STCG tax (20%) might make this less efficient.
- Investors need to be aware of the ₹ 1.25 lakh exemption limit for long-term gains.
4.6 Performance Risk (Future May Differ)
- Past performance does not guarantee future returns. The economic environment, interest rates, inflation, regulation, and business cycles may change.
- The fund’s flexibility is a double-edged sword: if the managers misread market trends, the allocations across cap segments could hurt performance.
5. Who Should Invest in This Fund?
Here, you can guide your blog readers on suitability – who this fund is for, and in what scenarios.
5.1 Suitable for Long-Term Investors
- Investors with a horizon of 5–10+ years (or more) who can ride out volatility.
- Those who want broad equity exposure across market caps, not just large-cap.
5.2 Risk-Tolerant Investors
- People who are comfortable with “very high” risk, but want high growth potential.
- Investors who understand equity market cycles and are okay with NAV fluctuations.
5.3 Systematic Investors
- Those who want to do SIP (Systematic Investment Plan): As we saw, SIP returns over 3- and 5-year periods are strong.
- Using SIP helps mitigate risk by averaging the cost.
5.4 For Portfolio Diversification
- Useful as a “core equity” fund in a diversified portfolio.
- Can complement other equity funds (large-cap, mid-cap, small-cap) or other asset classes (debt, gold) to create balanced exposure.
5.5 Not Ideal For
- Very short-term investors (e.g., < 1 year), due to exit load and market risk.
- Very risk-averse investors who prefer stable returns or fixed income.
- Those expecting guaranteed returns — equity funds are inherently uncertain.
6. How to Invest in Nippon India Multi Cap Fund — Step by Step Guide
Here’s a practical, step-by-step guide (for your blog readers) on how to invest in this fund.
- Set Your Investment Goal
- Decide why you are investing: retirement, wealth creation, child’s education, etc.
- Define your time horizon: 5, 7, 10+ years.
- Assess your risk tolerance: are you okay with volatility?
- Choose the Right Plan
- Direct Plan vs Regular Plan: Direct plan generally has lower expense ratio.
- Growth Option vs Dividend Option: Growth is more common for long-term equity wealth building.
- Open a Mutual Fund Account
- Use an AMC platform (Nippon India Multi Cap Fund India’s own site) or a third-party fund aggregator (e.g., Zerodha, Groww, ET Money) or via your bank.
- Complete KYC (if not done already).
- Decide Investment Mode
- SIP: Invest a fixed amount monthly (recommended for equity funds to average cost).
- Lump-Sum: Invest a large sum in one go (if you have capital and are confident about timing).
- Set Up the SIP / Invest Lump-sum
- Enter the amount (minimum SIP is quite low; direct plan may allow ₹100 SIP, according to some platforms). AI Bull+1
- Choose the date for SIP (e.g., 1st of every month).
- Confirm and submit.
- Monitor & Review Periodically
- Track NAV, portfolio performance, and returns. Use fund fact sheet / monthly reports.
- Review at least once every 6–12 months. Do not react to short-term volatility unless you have a change in goal.
- Decide on Redemption Strategy
- If redeeming: Try to hold for >12 months to avoid exit load for large redemption percentages.
- Redeem in phases (if needed) to avoid timing risk.
- Consider tax implications (LTCG vs STCG).
- Stay Disciplined
- Stick with your SIP plan if your goal is long term.
- Avoid trying to time the market too much.
- Rebalance your entire portfolio periodically if needed (especially if multi cap fund becomes too large a portion).
7. Comparative Analysis: Nippon India Multi Cap Fund vs Other Multi-/Flexi-Cap Funds
To give your blog more depth, you can compare the Nippon India Multi Cap Fund with its peers. (Here are some points, though you may need to pick specific funds based on data.)
- Performance Comparison: Compare its 3-yr, 5-yr, 10-yr returns with other multi-cap or flexi-cap funds.
- Expense Ratio: How does 0.71–0.77% compare with the average of peers?
- AUM: Is the fund bigger or smaller than the competitors?
- Diversification / Allocation Strategy: Some flexi-cap funds may go heavily into large-cap, others may be more aggressive; Nippon India Multi Cap Fund approach is relatively balanced.
- Fund Manager Experience: How experienced are the managers compared to others.
- Risk Metrics: Standard deviation, beta, Sharpe ratio (if data available).
For instance, mention the 50:25:25 rule (which is a guideline many multi-cap funds follow) for context. The Economic Times
8. Real-World Scenarios & Case Studies
To make the blog more engaging and practical, include hypothetical or real investor stories / scenarios:
Case Study 1: A Young Investor Starting SIP
- Say, Rahul (25 years old) starts a ₹5,000/month SIP in Nippon India Multi Cap Fund for 10 years. Project the possible corpus based on historical SIP return rates (for example, using 5-year SIP return ~ 21.81% from Moneycontrol data). Moneycontrol
- Show how volatility might happen, but over 10 years, compounding works.
Case Study 2: Mid-career Investor with Risk Appetite
- An investor, Priya (40 years old), invests lump sum ₹5 lakh, plus SIP ₹10,000/month, planning for retirement or child’s education.
- Because she can take risk, she opts for multi-cap instead of only large-cap.
- She reviews after 5 years, sees how the fund performed vs benchmark, and rebalances if necessary.
Case Study 3: Correction Scenario
- Suppose market corrects (small-cap or mid-cap underperforms). What if Nippon India Multi Cap Fund reduces small-cap allocation?
- Show how the fund’s flexibility helps in such scenarios — fund manager may reduce risk, reallocate.
9. Future Outlook & Considerations
Here, discuss what might influence future performance of Nippon India Multi Cap Fund, and what investors should watch for.
9.1 Macro-Economic Factors
- Indian economy growth, corporate earnings growth, inflation rates, interest rates.
- Regulatory changes: Tax policy, corporate governance, reforms.
9.2 Equity Market Trends
- Valuation of large-cap, mid-cap, small-cap. If small-cap valuations are rich, fund manager might reduce small-cap exposure.
- Sectoral shifts: Fund’s sectoral exposure (financials, capital goods, services) could be impacted by macro or policy shifts.
9.3 Fund Dynamics
- Changes in fund management: If fund manager changes, strategy might shift.
- AUM growth: As AUM grows, flexibility in small-cap might reduce (liquidity constraint).
- Expense ratio: Competitive pressure or scale may change cost structure.
9.4 Risk Management
- For investors: Reassess investment horizon and risk tolerance periodically.
- For fund managers: They need to navigate valuation cycles, remain disciplined, and stick to conviction
Top 10 Stocks in Portfolio
How to read this table?
| Stock Invested in | Sector | Value(Mn) | % of Total Holdings | 1M Change | 1Y Highest Holding | 1Y Lowest Holding | Quantity | 1M Change in Qty |
|---|---|---|---|---|---|---|---|---|
| HDFC Bank Ltd. | Private sector bank | 26726 | 5.42% | 0.39% | 6.52% (Feb 2025) | 5.03% (Sep 2025) | 2.71 Cr | 20.69 L |
| Axis Bank Ltd. | Private sector bank | 19848 | 4.02% | 0.17% | 4.44% (Apr 2025) | 2.84% (Dec 2024) | 1.61 Cr | 0.00 |
| GE T&D India Ltd. | Heavy electrical equipment | 14570.6 | 2.95% | -0.05% | 3.58% (Jul 2025) | 2.46% (Feb 2025) | 47.97 L | 0.00 |
| Reliance Industries Ltd. | Refineries & marketing | 14223.3 | 2.88% | 0.12% | 3.51% (Apr 2025) | 2.76% (Sep 2025) | 95.69 L | 0.00 |
| Infosys Ltd. | Computers – software & consulting | 12871.2 | 2.61% | -0.04% | 3.01% (Dec 2024) | 1.58% (Jul 2025) | 86.83 L | 0.00 |
| ICICI Bank Ltd. | Private sector bank | 11447.2 | 2.32% | -0.11% | 4.08% (Feb 2025) | 2.32% (Oct 2025) | 85.09 L | 0.00 |
| Max Financial Services Ltd. | Life insurance | 11260.2 | 2.28% | -0.19% | 2.69% (Jun 2025) | 2.12% (Dec 2024) | 72.81 L | -1.19 L |
| State Bank Of India | Public sector bank | 11128.5 | 2.26% | -0.02% | 2.37% (Nov 2024) | 1.92% (Jun 2025) | 1.19 Cr | -5.00 L |
| National Thermal Power Corporation Ltd. | Power generation | 10028.5 | 2.03% | -0.11% | 2.66% (Mar 2025) | 1.95% (Dec 2024) | 2.98 Cr | 0.00 |
| Larsen & Toubro Ltd. | Civil construction | 10006.3 | 2.03% | 0.19% | 2.19% (Nov 2024) | 1.84% (Sep 2025) | 24.82 L | 1.00 L |
Conclusion
- Nippon India Multi Cap Fund is a robust, well-established multi-cap equity mutual fund suitable for long-term, risk-tolerant investors.
- Its diversified allocation across large, mid, and small-cap, combined with a conviction-driven, flexible management approach, makes it a strong candidate for a “core equity” holding.
- Real data (AUM, returns, allocation) shows that the fund has delivered impressive compounding over long periods, but like all equity funds, comes with risks which one must be comfortable with.
- For many, investing through SIP is an optimal way to benefit from compounding and average out market volatility.
- Investors should define their goals, invest with discipline, periodically review, and avoid reacting emotionally to market swings.
