PGIM India Multi Cap Fund: Outperforming benchmark and peers

Multicap funds are becoming increasingly popular with retail investors. In the last 1 year AUM of multicap funds grew by 21%, when AUM of active equity funds grew by 15% (source: AMFI, as on 31^st July 2026). As per SEBI’s mandate, multicap funds invest minimum 25% each in large cap, midcap and small cap stocks. In this article, we will discuss about the PGIM India Multicap Fund which has been outperforming its benchmark and peer group since its inception.

Why invest in multicap funds now?

• Market has been volatile in the last one year due to geo-political concerns and uncertainty about commodity prices. Midcaps outperformed large cap and small cap. Though small caps have been more volatile than large caps and midcaps, they have recovered strongly (see the chart below). Continued FII selling pressure has impacted large cap stocks
  
  

  

  Source: National Stock Exchange, Advisorkhoj Research, as on 31^st July 2026. Large cap is represented by Nifty 100 TRI, Midcap by Nifty Midcap 150 TRI and Small Cap by Nifty Small Cap 250 TRI



• Valuations have moderated compared to peak valuations for large caps and midcaps. Small cap valuations are back at peak levels, but valuation of the multicap index seems reasonable relative to peak valuations (see the chart below).
  
  

  

  Source: National Stock Exchange, Advisorkhoj Research, as on 31^st July 2026.



• Multicap funds have the potential to outperform the broad market index. The chart below shows the 5 year rolling returns of the multicap benchmark versus the broad market benchmark index (Nifty 500 TRI). The multicap benchmark was able to outperform the broad market benchmark across most 5 year investment periods.
  
  

  

  Source: National Stock Exchange, Advisorkhoj Research, as on 31^st July 2026.



• The reforms implemented by the Government especially in the areas of manufacturing (Atmanirbhar Bharat), infrastructure, digitalization, tax reforms etc will benefit companies across all three cap market cap segments. The changing global supply chain dynamics e.g. China + 1, will benefit companies across all three market cap segments

PGIM India Multi Cap Fund

The fund has outperformed the benchmark index, Nifty 500 Multicap 50:25:25 TRI since its inception (see the chart below).

Source: Advisorkhoj Research, as on 28^th August 2026

Smaller drawdowns compared to the benchmark index

The broad market (across market cap segments) has been very volatile since the fund was launched, for various factors e.g. FII sell-off, global trade policies (tariffs / counter tariffs), geopolitical conflicts (e.g. US Iran War), uncertainty about commodity prices (e.g. crude oil). PGIM India Multi Cap Fund was able to limit downside risks for investors in market corrections.

Source: Advisorkhoj Research, as on 28^th August 2026

Outperformed the benchmark index across different periods

PGIM India Multi Cap Fund outperformed the benchmark index over various periods since the inception of the scheme (see the chart below).

Source: Advisorkhoj Research, as on 28^th August 2026

Outperformed the category across different periods

PGIM Multi Cap Fund outperformed the multicap funds category average over various periods since the inception of the scheme (see the chart below).

Source: Advisorkhoj Research, as on 28^th August 2026

Stock selection strategy

Fund management style

• 3S framework for stock picking: Scalable, Sustainable, Structural
  
  
  • Scalable: Focus on companies with the potential to continue growing their revenue at an accelerated pace
  
  
  • Sustainable: Prioritize companies achieving above-average growth at comparatively lower costs as they scale.
  
  
  • Structural: Seek companies with a longer runway for above-average growth and profitability, driven by clear, visible trigger


• The portfolio construction approach is bottom-up and well-diversified.


• Growth at a Reasonable Price (GARP) focused strategy with flexibility to adjust between short, medium and long-term growth opportunities based on market conditions


• May allocate to turnaround ideas, event-driven opportunities, and stocks showing momentum driven by earnings growth in the medium to long term.

Current portfolio positioning

Source: PGIM India MF, as on 31^st July 2026

Who can find PGIM India Multi Cap Fund suitable?

• Investors with investment horizon of 5 plus years for long term wealth creation


• Investors seeking to participate in high growth and high quality stocks


• Investors seeking a fund with disciplined allocation to all market cap segments at all points of time


• Investors with very high risk appetites

Investors should consult their financial advisors or mutual fund distributors if PGIM India Multi Cap Fund is suitable for their investment needs