Multi-cap vs Flexicap: comparative analysis

Tue, 19 May 2026 00:00:00 +0000

Multi-cap and Flexicap are two SEBI-defined equity mutual fund categories that emerged from the 2020 multi-cap reclassification . The two categories sound similar but operate under different rules:

Multi-cap: Minimum 25% in each of large-cap, mid-cap, and small-cap stocks (the 25-25-25 rule). Remaining 25% at manager discretion.
Flexicap: 65% minimum total equity allocation; no mandatory split across cap segments. AMC has full discretion.

The reform sequence: SEBI’s September 2020 multi-cap mandate forced existing “multi-cap” funds to hold meaningful small-cap exposure; in response, SEBI created the Flexicap category to preserve AMC discretion. Most schemes that were previously “multi-cap” migrated to Flexicap, with multi-cap becoming a more constrained category.

Flexicap on WebNotes

Multi-cap vs Flexicap: comparative analysis