Canara Robeco Multicap Fund:Strong all round outperformance

Current market context

The equity market rebounded after GST rates were slashed in September. After 3 months of sell-off, FII turned net buyers in October with over Rs 4,300 crores net purchase of equities in October (month to data, as on 15^th October 2025, source: NSDL). The market is expected a boost in consumption in the festive season and beyond in wake of the GST cuts. The correction over past year or so has brought valuations down from peaks across all market capitalization (see the graphic below). As such, investors can find attractive investment opportunities across large cap, midcap and small cap in a multicap strategy. In this article, we will review Canara Robeco Multicap Fund.

Source: NSE, as on 30^th September 2025

About Canara Robeco Multicap Fund

The fund was launched in July 2023 and has Rs 4,656 crores of AUM (as on 30^th September 2025). As per SEBI mandate multicap funds must invest minimum 25% of their assets in each of the three market cap segments i.e. large caps, midcap and small cap. The regular plan of the fund has given nearly 19% CAGR returns since inception.

Outperformed the benchmark index across market conditions

The chart below shows the 1 year rolling returns of Canara Robeco Multicap Fund versus the multicap fund category average since the inception of the scheme. You can see that fund outperformed the benchmark index consistently across market conditions.

Source: Advisorkhoj Research, as on 15^th October 2025

The fund comprehensively outperformed benchmark index (Nifty 500 Multicap 50:25:25 TRI) and the broad market index Nifty 50 TRI over 1 year investment tenures across different parameters like average, median, maximum and minimum rolling returns. What is noteworthy is that while average, median and maximum returns of the fund was higher than the benchmarks, the minimum return was also higher than the benchmarks, in other words, strong risk adjusted returns.

Source: Advisorkhoj Research, as on 15^th October 2025

The percentage instances of negative 1 year rolling returns of the fund was significantly lower compared to the benchmark index (see the table below). At the same the percentage instances of 12%+ and 20%+ CAGR returns was significantly higher than the benchmark and broad market index.

Source: Advisorkhoj Research, as on 15^th October 2025

Consistently outperformed peers

The chart below shows the 1 year rolling returns of Canara Robeco Multicap Fund versus the multicap fund category average since the inception of the scheme. You can see that the fund was for a major period consistently able to outperform the category average across different market conditions.

Source: Advisorkhoj Research, as on 15^th October 2025

Superior risk return trade-off versus peers

Canara Robeco Multicap Fund has significantly less percentage instances of negative returns compared to the category average and significantly higher percentage instances of 12%+ CAGR returns (see the chart below). The fund offered better risk / return trade off compared to the peer average.

Source: Advisorkhoj Research, as on 15^th October 2025

Limited downside risks for investors

Canara Robeco Multicap Fund experienced smaller drawdowns compared to its benchmark index (see the chart below). It was able to limit downside risks for investors. The maximum drawdown of the scheme was -19%, versus -20% maximum drawdown of the benchmark index.

Source: Advisorkhoj Research, as on 15^th October 2025

Market capture ratios indicate strong risk adjusted returns

The market has been volatile for the past one year. We saw periods of correction followed by periods of recovery. Up Market Capture Ratio tells us how much percentage of the market’s upside was captured by the fund. The Up Market Capture Ratio of Canara Robeco Multicap Fund was 97% which implies that if the benchmark index went up by 1% in a month, then the scheme’s Net Asset Value (NAV) went up by 0.97%. Down Market Capture Ratio tells us how much percentage of the market’s downside was arrested by the fund. The Down Market Capture Ratio of the fund was only 91% which implies that if the benchmark index went down by 1% in a month, then the scheme’s Net Asset Value (NAV) went down by 0.91% only. The market capture ratios of Canara Robeco Multicap Fund are a clear indication of the potential of the fund to give superior risk adjusted returns of the fund.

Strong consistency in quartile ranks

Canara Robeco Multicap Fund was in the upper (top 2) quartiles 6 times in the last 8 quarters (see the graphic below).

Source: Advisorkhoj Research, as on 30^th September 2025

Judicious market cap allocation indicate strong risk management

Canara Robeco Multicap Fund has higher allocations to large cap stocks and lower allocations to small caps stocks compared to the category average.

Source: Canara Robeco Fund Factsheet, Advisorkhoj Research, as on 30^th September 2025

Sector Allocations

The outperformance of the fund can be attributed to the sector allocation. The fund was mostly underweight on the sectors that had underperformed in the last 1 year (e.g. IT, Oil and Gas, Power, Telecom, Construction, Realty etc) and overweight on some sectors that outperformed (e.g. Financials, Healthcare, Consumer Durables, Consumer Services etc).

Source: Nifty Indices Factsheet, Advisorkhoj Research, as on 30^th September 2025

Current portfolio positioning

Source: Canara Robeco Fund Factsheet, as on 30^th September 2025

Who should invest in Canara Robeco Multicap Fund?

• Investors seeking capital appreciation over long investment horizon


• Investors who want exposure across all market cap segments in a single fund


• Investors with minimum 5 year investment horizon


• Investors with very high risk appetites

Investors should consult with their financial advisors or mutual fund distributors if Canara Robeco Multicap Fund is suitable for their investment needs.