{
  "id": 2055320,
  "title": "Multi-cap funds offer equity-like returns with lower drawdowns",
  "url": "https://urgent.news/2026/08/20/multi-cap-funds-offer-equity-like-returns-with-lower-drawdowns",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-20T01:42:31.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/mf/analysis/multi-cap-funds-offer-equity-like-returns-with-lower-drawdowns/articleshow/133361636.cms"
  },
  "original_language": "en",
  "account": "Mumbai: For those seeking equity-like returns with reduced market fluctuations, multi-cap funds may be a suitable option. According to a study by WhiteOak Capital, the Nifty 500 Multicap 50:25:25 TRI delivered an annualized return of 15.53% between 2005 and 2026, which outpaced large-cap returns by 1.54% and was close to small-cap and mid-cap returns. Multi-cap funds typically hold a mix of large-, mid-, and small-cap stocks, potentially offering lower volatility and drawdowns than individual market segments. The annual volatility for multi-caps stood at 23.4%, lower than small-caps at 28.7% and mid-caps at 26%. Drawdowns were also comparatively lower for multi-caps at 66.8%, compared to 75.6% for small-caps and 72.9% for mid-caps. Large-caps had a lower drawdown of 61.1%. Wealth managers argue that multi-caps can help reduce investor volatility and remove the burden of market-cap timing decisions. These funds are also tax-efficient and can capture a significant portion of return potential across market segments while minimizing risk. They can also assist in managing investor behavior during market downturns, as multi-caps typically exhibit lower drawdowns, according to Vishal Dhawan, founder and CEO of Plan Ahead Wealth Advisors.",
  "summary": "Multi-cap funds provide equity-like returns with reduced volatility and drawdowns. These funds delivered strong annualised returns over a twenty-one-year period. They offer a balanced approach across large, mid, and small-cap stocks. Wealth managers suggest multi-caps simplify investment decisions for retail investors. This strategy helps manage investor behaviour during market stress periods.",
  "key_points": [
    "Multi-cap funds provide equity-like returns with lower market fluctuations.",
    "Nifty 500 Multicap 50:25:25 TRI delivered 15.53% annualized return 2005-2026.",
    "Multi-caps had lower volatility (23.4%) and drawdowns (66.8%) compared to small- and mid-caps."
  ],
  "editors_take": "Investors seeking equity-like returns with reduced market fluctuations may find multi-cap funds a suitable option, as they offer lower volatility and drawdowns compared to small-cap and mid-cap investments.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}