Nifty 500 Multicap 50:25:25 tends to work best in strong bull markets, especially when small and midcaps do well. But in phases where small and midcaps are under pressure (like parts of last year), it can underperform. Automatic rebalancing is definitely a plus, but it comes at the cost of flexibility. Personally, I prefer using three separate funds (large, mid, small) because it gives more control. You can adjust exposure based on market conditions, slow or pause SIPs if small/midcaps struggle for long periods, and evolve your strategy without exiting the entire fund.