Are you confused about choosing the high-returning mutual funds category out of large, mid, small, and multi-cap funds?

Then you are at the right place to know more about it.

High-returning mutual funds out of large, mid, small, and multicap funds?…

for this analysis, I took the daily nav of all these 4 category benchmark closing values for more than 470 days from 2006 to the 2024 end.

In addition, I have calculated the yearly return on investment for all these 4 categories: large cap, mid cap, small cap, and multi cap.

But you can see that the returns for all years for all categories in the above image is inconsistent.

So, it will be hard to identify the high-returning mutual fund.

What is the corpus accumulated for 1 lakh investment in large, mid, small, and multicap funds? …

Let’s assume that you have invested 1 lakh in each of these categories and calculate the future value of all categories.

In addition, those categories are Nifty large cap 100, Nifty midcap 150, Nifty small cap 250 and Nifty 500 multicap.

You can see in the above image that the corpus accumulated in all index categories.

In addition, 1 lakh investment in 2006 became 12 lakh at the end of 2024 in the midcap 150 index.

And the corpus accumulated is 8 lakh, approximately in the other 3 index categories.

Which shows that the midcap index has the highest edge for getting the highest return over large, small, and multicap funds.

What is the volatility in large, mid, small, and multicap funds? …

You can see in the above image that the volatility is highest in small-cap funds, and the corpus in small-cap is almost equal to that of large and multicap category indices.

In addition, the corpus accumulated in the midcap index is highest among all 4 category indices.

But the volatility in midcap index yearly roi is higher than that of Nifty 500 (mulicap index).

As all these funds are giving good returns in different years and as there is a pattern to catch those returns.

It will be better to invest in all these categories for the purpose of diversification and asset allocation.

But if you invest in large, mid-, or small-cap funds, you may have to incur capital gain taxes whenever you do the rebalancing of the portfolio.

So, finally, considering capital gain taxes, exit expenses, and volatility, investing only in multicap funds makes sense.

And you can consider the midcap 150 index also for investment but you should know the ways to decrease the volatility in it.

Read the article about How to Calculate the CAGR of Nifty 50 for the Next 10 Years…

Also read about what is the best way to invest in a Nifty 50 investment. …

And read about the best fund to invest in to get a consistent return on investment…

Also read about Benchmark in Mutual Funds: What is its importance?…

And read about liquid funds in mutual funds—all you need to know…

Also read about the best mutual funds to invest in 2025…