SBI Multicap Fund Review 2025: NAV, Returns, Growth & Performance

Introduction: Multicap Fund and SBI’s Offering

Among the various investment mediums available today, mutual funds have emerged as one of the most trusted and popular options. Managed by expert fund managers, mutual funds pool money from multiple investors and invest it across a diversified portfolio that may include stocks, bonds, securities, and other financial instruments.

One such option is the SBI Multicap Fund, a scheme that allows investors to diversify across companies of all sizes—large-cap, mid-cap, and small-cap—ensuring both stability and growth.

Introduction: Multicap Fund and SBI’s Offering
Fund’s Foundation: NFO and Launch
NAV, Return, and Performance In-Depth Analysis
SBI Multicap Fund Trailing Returns vs. Benchmark and Category Average
SBI Multicap Fund – Performance Overview Comparison
Portfolio and Investment Strategy
Risk Profile and Investor Suitability
SBI Multicap Fund Risk Measures vs. Category Average
The Method of Investment: SIP and Lumpsum
Conclusion: Pros and Risks of Investment
FAQ

Fund’s Foundation: NFO and Launch

When an Asset Management Company (AMC) introduces a new fund in the market, it is called a New Fund Offer (NFO). During this stage, investors are invited to participate, and the collected amount is invested once the fund is launched.

For SBI Multicap Fund, the NFO period ran from 14 February 2022 to 28 February 2022, with a minimum investment of ₹5000. The fund was officially launched on 8 March 2022, with an initial NAV of ₹10 per unit.

Thanks to SBI’s strong brand recognition and investor trust, the fund managed to collect a significant corpus right from the beginning. Today, the Assets Under Management (AUM) of this fund stand at around ₹22,387 crore (as of August 2025).

NAV, Return, and Performance In-Depth Analysis

The performance of a mutual fund is often measured by its NAV (Net Asset Value), which represents the market value of each unit. NAV changes daily depending on the performance of the underlying portfolio.

SBI Multicap Fund is available in two plans—Direct Plan and Regular Plan. While both have the same portfolio, the difference in expense ratios impacts returns.

As of 22 August 2025, the NAV for the Direct Plan stood at ₹17.66, whereas the Regular Plan NAV was ₹17.10.
For long-term investors, even this small difference compounds into a significant variation in returns.

SBI Multicap Fund Trailing Returns vs. Benchmark and Category Average

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%	—	—

Key Insight: Short-term returns are modest, but long-term performance (3 years+) remains strong, averaging above 17% annually.

Portfolio and Investment Strategy

The fund follows a bottom-up stock-picking approach, where investments are made across diverse sectors and companies based on fundamentals.

As per SEBI’s mandate, the scheme must allocate a minimum of 25% each in large-cap, mid-cap, and small-cap stocks.
This ensures a balance:
- Large-cap: Stability and steady growth.
- Mid-cap & Small-cap: High growth potential but higher volatility.

This blend makes the fund suitable for investors seeking diversified exposure across market capitalizations.

Risk Profile and Investor Suitability

According to SEBI’s riskometer, the SBI Multicap Fund falls under the High-Risk category.

The primary reason is its higher exposure (50%+) to mid-cap and small-cap stocks, which are more volatile compared to large-cap companies.
Investors must be prepared for short-term fluctuations and should ideally stay invested for 3 to 5 years to enjoy stable returns.

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

📊 Analysis: While slightly behind category averages in risk-adjusted returns, the fund’s lower beta indicates less volatility compared to peers.

The Method of Investment: SIP and Lumpsum

Investors can choose between SIP (Systematic Investment Plan) or Lump-sum investment:

SIP:
- Minimum investment starts at just ₹500 per month.
- Offers rupee cost averaging, reducing risk over time.
Lump-sum:
- Minimum investment of ₹5000.
- Suitable for investors with larger funds who want immediate exposure.

Conclusion: Pros and Risks of Investment

✅ Advantages:

Professionally managed by experienced fund managers.
Diversification across large, mid, and small-cap stocks.
Strong long-term performance with AUM growth.

⚠️ Risks:

High volatility due to exposure in mid & small-cap companies.
Short-term returns can be disappointing.

👉 Hence, the SBI Multicap Fund is best suited for long-term investors (3–5 years+) who can tolerate volatility for the potential of higher returns.

FAQ

Q1: What risks can arise if we all invest in multicap funds?
SBI Multicap Fund is categorized as high-risk since more than 50% allocation is in mid-cap and small-cap stocks. These segments are volatile, leading to both higher growth opportunities and higher risk.

Q2: How has the SBI Multicap Fund performed in terms of returns?

Short-term (1 year): ~3.98% returns.
Long-term (3 years): ~17.68% to 18.72% annually.
This makes it more suitable for long-term wealth creation.

Disclaimer

All content on 360storyline.com is for educational purposes only. We provide updates on stock market, crypto, finance, commodities, and success stories—but this is not financial advice. Please consult a certified advisor before investing. Markets involve risks, and both profits and losses are possible.

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