Introduction: Multicap Fund and SBI’s Offering
In today’s time, there are many mediums for investment and among them comes out the mutual fund, which is a very secure and famous investment medium. In this, the investors who have expertise are there, whom we also call fund managers, they collect our money together and invest it in the form of a diversified portfolio like stocks, securities, bonds, and other financial instruments. One of them is SBI Multicap Fund.
Mutual fund is a kind of basket in which there are three types of investments: equity, debt, and hybrid fund. Under it, one category comes which is multicap/flexicap fund. SBI Multicap Fund is a part of it, which is a trending investment strategy.
SBI Multicap Fund is such an investment strategy that gives investors the opportunity to invest money in companies of every market size while sitting at home. This becomes possible due to professional fund managers because they allocate our money into different funds, such as small-cap, mid-cap, and large-cap, through which our money gets diversified.
Fund’s Foundation: NFO and Launch
If any company wants to bring its fund under the share market, then in the initial stage it is called New Fund Offering (NFO). This is the time when any asset management company collects money from investors, and the same happened in the case of SBI Multicap Fund.
The NFO period was from 14 February 2022 to 28 February 2022, and for investment, the minimum price was kept at ₹5000. The fund officially started from 8 March 2022, and its starting NAV price was ₹10 per unit.
Launching a new, fresh fund in the market is a very big step. Along with that, to make the fund powerful and strong, it has to collect money from the market as well. But at the time of the SBI Multicap Fund, it had already collected money because its recognition in the market was very good, and investors had a lot of trust in it. Due to this, today, Assets Under Management (AUM) has been prepared. And according to the current data, the AUM of the fund is around ₹22,387 crore or more.
NAV, Return, and Performance In-Depth Analysis
If one wants to know the performance of SBI Multicap Fund, then it can be known through the NAV. It is measured in the form of returns received by the investors, and NAV is the market value of each unit of the fund. It is not fixed, it automatically changes according to the returns given to investors.
One important piece of information for investors to know is that the fund is divided into two types of plans. And the portfolio of these plans remains as it is the same, only the difference is that there are big changes in their returns and NAV, which are directly related to the expense ratio.
For example, as of 22 August 2025, out of the two types of plans, the NAV of the Direct Plan was 17.66, and the NAV of the Regular Plan was 17.10. But if we look for long-term investment, then there is a big difference.
SBI Multicap Fund Trailing Returns vs. Benchmark and Category Average
SBI Multicap Fund – Performance Overview Comparison
| Tenure | Regular Return | Direct Return | Benchmark | Category Avg | Category Rank (Regular) |
| 1 Month | -2.16% | -2.09% | — | -1.39% | 31/38 |
| 3 Months | 3.30% | 3.51% | — | 3.43% | 22/38 |
| 6 Months | 13.02% | 13.48% | — | 13.35% | 22/36 |
| 1 Year | 3.98% | 4.84% | — | -0.26% | 4/28 |
| 3 Years | 17.68% | 18.72% | 20.00% | 20.00% | 11/14 |
| Since Launch | 16.77% | 17.86% | 19.78% | — | — |
If we research this table perfectly, it is seen that the fund shows very low returns in short-term performance. Around 1-year return is 3.98%, whereas if we see the 3-year performance return, then it is around 17.68% – 18.72%.
Portfolio and Investment Strategy
The Growth Plan of SBI Multicap Fund depends on different types of strategies because the money that we invest little by little in a mutual fund is collected together and follows the bottom-up approach. In this, what happens is that our money is invested by the fund manager in different sectors, due to which the return becomes stable and the probability of return becomes low.
And the main motive of this facility is to invest in a diversified portfolio across the entire market capitalization, and while following the SEBI mandate rule, the fund has to keep 25% allocation in each market cap fund, it can keep more than that also.
Due to this, along with the stability of large-cap, the fund also gets the benefit of high growth from mid and small-cap, which makes the money grow with stability.
Risk Profile and Investor Suitability
On SEBI’s riskometer, SBI Multicap Fund has been kept under high risk, because in this, the money fluctuation is very high, due to which the chance of risk also becomes high. Sometimes, investors also have to take losses.
And the main reason for this risk is that SBI Multicap Fund invests more than 50% of its money in mid-cap and small-cap stock funds, and these funds are more volatile compared to large-cap stocks, due to which along with returns, the risk of loss also increases.
SBI Multicap Fund Risk Measures vs. Category Average
| Risk Measure | Fund Value | Category Average |
| Standard Deviation (Regular) | 11.88% | 13.83% |
| Standard Deviation (Direct) | 11.88% | 13.84% |
| Beta (Regular) | 0.76 | 0.91 |
| Beta (Direct) | 0.76 | 0.91 |
| Sharpe Ratio (Regular) | 0.94 | 0.97 |
| Sharpe Ratio (Direct) | 1.02 | 1.06 |
| Alpha (Regular) | 0.88 | 1.03 |
| Alpha (Direct) | 1.77 | 2.26 |
From the analysis of this table, we see that if you want to take good returns in this fund, then you will have to keep it for at least 3 to 5 years with patience.
The Method of Investment: SIP and Lumpsum
Like most funds, SBI Multicap Fund also has two types of investment facilities: SIP (Systematic Investment Plan) and lump sum. These facilities given by the fund give investors the option to invest according to their financial condition.
In SIP investment, the investor can invest money at a particular interval according to their choice, i.e., every month. The biggest benefit of this is rupee cost averaging. When the market is down, it buys more units, and when it is up, it buys fewer units, due to which its average remains balanced. And if you want to do SIP in the SBI Multicap Fund, then the minimum SIP can be done from ₹500.
Lump-sum investment is for those investors who have a large amount and want to keep their money safe with average returns. The minimum investment in this is ₹5000.
Conclusion: Pros and Risks of Investment
If you want to invest in SBI Multicap Fund, then its biggest benefit is that you don’t have to worry about managing your money. That work is done by experienced fund managers, and in this, your money is invested in large-cap, mid-cap, and small-cap stocks, which gives us the opportunity to invest in companies of every type of market capitalization. This keeps our balanced risk-return profile good.
If we see the risk of SBI Multicap Fund, then it remains that it allocates more than 50% of its money in mid-cap and small-cap stocks, due to which the fund becomes very volatile, and the chances of risk also increase. That is why investors are advised that investment in the fund should be done for long-term, so that we can get good returns.
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FAQ:
What risks can arise if we all invest in multicap funds ?
According to SEBI’s riskometer, SBI Multicap Fund falls under the high-risk category. This is because more than 50% of its allocation is in mid-cap and small-cap stocks, which are more volatile compared to large-cap stocks. This increases both the chances of higher returns and higher risk.
How has the SBI Multicap Fund performed in terms of returns ?
The fund’s short-term performance shows limited returns, such as a 1-year return of 3.98%. However, in the long term, it has performed well, with 3-year returns ranging between 17.68% and 18.72%. more suitable for long-term investors this fund.
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