Flexi Cap Funds

Flexi Cap Funds invest in companies of all sizes, providing a flexible and dynamic portfolio for potential long-term growth in evolving market conditions.

time horizon

Long Horizon

total funds

38 Funds

total aum

₹3,34,067 Cr Total AUM

Equity

Explore Flexi Cap Funds

Fund nameFund sizeExpense Ratio
3Y Returns
Quant Flexi Cap Fund
Quant Flexi Cap Fund

Flexi Cap Very High Risk

₹3,539 Cr0.77%35.8%
Bank of India Flexi Cap Fund
Bank of India Flexi Cap Fund

Flexi Cap Very High Risk

₹630 Cr0.94%29.0%
JM Flexicap Fund
JM Flexicap Fund

Flexi Cap Very High Risk

₹1,437 Cr0.58%28.1%
HDFC Flexi Cap Fund
HDFC Flexi Cap Fund

Flexi Cap Very High Risk

₹47,642 Cr0.83%25.9%
Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund

Flexi Cap Very High Risk

₹55,034 Cr0.58%24.1%
Franklin India Flexi Cap Fund
Franklin India Flexi Cap Fund

Flexi Cap Very High Risk

₹14,165 Cr1.04%22.6%
Edelweiss Flexi Cap Fund
Edelweiss Flexi Cap Fund

Flexi Cap Very High Risk

₹1,598 Cr0.46%21.1%
HSBC Flexi Cap Fund
HSBC Flexi Cap Fund

Flexi Cap Very High Risk

₹3,735 Cr1.17%21.0%
Union Flexi Cap Fund
Union Flexi Cap Fund

Flexi Cap Very High Risk

₹1,917 Cr0.94%20.2%
Shriram Flexi Cap Fund
Shriram Flexi Cap Fund

Flexi Cap Very High Risk

₹76 Cr0.85%20.0%

Get your investment
reviewed in few clicks

Identify red flags in your mutual funds and how to fix them

Rated ★4.5+ onappstoreplaystore

All about Flexi Cap Funds

What are Flexi Cap Mutual Funds?

As per SEBI's classification, flexi cap mutual funds are equity funds that are required to invest at least 65% of their assets in equity and equity-related instruments. The unique feature of flexi-cap funds is that they can invest in equity across market capitalisations without any specific limitations, unlike large-cap, mid-cap, and small-cap funds

The flexibility to invest across market capitalisations gives the fund managers the ability to seize investment opportunities without restrictions.

Advantages of Flexi Cap Funds

Diversification across market cap and sectors

The inherent benefit of asset allocation gives Flexi-cap funds a competitive edge. A proficient fund manager is capable of predicting market trends and strategically allocating assets to benefit from market upswings while being safeguarded from downturns.

No restrictions concerning the allocation of funds across different market caps and sectors work in the fund’s favour. Such diversification can help in the effective management of risk and reward.

Historical data shows that flexi-cap funds have provided returns of 30-34 times over the past 20 years. In 2023, 24 out of 32 schemes have outperformed their benchmark.

Source: Economic Times, Business Today

Potential for higher returns than large cap funds

With flexi-cap mutual funds, you can enjoy exposure to large-cap companies with a solid track record and a steady growth rate. These companies can help you cushion your portfolio from market fluctuations and provide stability. 

On the other hand, you can also tap into the high growth potential of mid and small-cap companies that are still emerging and in their growth phase. Thus, these companies can offer you higher returns in the long run.

Index1Y2Y3Y4Y5Y
NIFTY 5009.05%10.35%76.11%74.15%89.90%
NIFTY 1004.35%5.62%62.33%58.69%77.32%

Source: Yahoo Finance

Disadvantages of Flexi Cap Funds

Fund manager risk

The performance of flexi-cap funds heavily relies on the fund manager's ability to identify market trends and make sound decisions. Consequently, while the potential for increased returns is evident, there is also an amplified risk if these decisions are incorrect.

Misalignment with risk profiles for certain investors

Since the fund managers can invest across different market caps, the portfolio allocation and risk depend on their choices. Some flexi-cap funds may be aggressive and invest heavily across mid and small-cap companies. On the other hand, some may have a conservative approach. 

Often, investors may be exposed to unwanted risk or invest in a very conservative portfolio. Thus, based on the investment objective, you must pick funds that align with your objectives and risk tolerance levels.

Flexi Cap Vs Multi Cap Funds

AspectFlexi Cap FundMulti Cap Fund
DefinitionInvest across different market caps without any allocation restriction.Must invest 25% in each large, mid and small cap.
RisksPortfolio can be too aggressive with higher mid and small-cap exposure.Market cap-based investment will restrict the fund manager from rebalancing the portfolio during a market crash. 
Category Average Returns3Y: 20.01% | 5Y: 15%3Y: 25.96% | 5Y: 18.53%
Advantages
  • Diversification across the market cap and sectors
  • Potential for higher returns than large-cap funds
  • Balanced equity portfolio at all times
  • Diversification
  • Good long-term investment
Disadvantages
  • Fund manager risk
  • Misalignment with risk profiles for certain investors
  • Restricted asset allocation

Should you invest in flexi cap funds?

Flexi-cap mutual funds are a popular category, having the highest AUM (of Rs 2,83,765 Cr) across all equity mutual fund categories. Since these funds are not mandated by market cap-specific investment allocation, these funds have a diversified portfolio that suits different investor needs. Instead, the fund manager can pick stocks based on their research and market dynamics.

You can consider investing in flexi cap funds if you are looking for:

Long-term wealth creation

Flexi-cap mutual funds are suitable for those who want to invest for the long term. Investing across large-cap, mid-cap and small-cap without any predefined allocation works in favour of the fund. The high growth potential of mid-cap and small-cap stocks provides an opportunity to create wealth for investors.

Diversification

These funds focus on investing across different industry segments. The impact of market decline may be less on a well-diversified portfolio. 

Furthermore, during market corrections, the fund manager can quickly rebalance the portfolio and reduce exposure to high-risk securities. Thus, investors who seek a well-diversified portfolio with active portfolio rebalancing can consider investing in flexi-cap mutual funds.

Rather than investing in a large, mid and small-cap fund, you can consider investing in flexi cap funds to diversify across sectors. However, if investing in more than one fund, you must consider the portfolio allocation of all the funds. Ensure you are not over-exposed to a sector or company. 
Note: The above information is for educational purposes only. It is best to consult a financial advisor before making investment decisions.

Still got questions?
We're here to help.

Flexi-cap funds have no such investment restriction across the market cap. Flexi-cap funds must invest at least 65% of their assets in equities. On the other hand, multi-cap funds are mandated to invest at least 25% each across large-cap, mid-cap and small-cap companies.
Capital gains from flexi-cap funds are taxable. Short-term gains, where the investment holding period is less than 1 year, are taxable at 15%. On the other hand, long-term gains above Rs 1 lakh, where the investment holding period is more than 1 year, are taxable at 10%.
Both flexi-cap and multi-cap funds have their benefits. Primarily, both offer a diversified investment portfolio that takes advantage of the growth potential of small and mid-cap companies. Flexi-cap funds offer more flexibility since SEBI doesn't mandate any market cap specific investment allocation. Thus, flexi caps can be a better investment option for aggressive investors.
Flexi-cap funds are high-risk equity mutual funds that invest across different market caps. Based on the asset allocation, the level of risk may differ. However, they are risky investments. Furthermore, the portfolio composition depends on the fund manager’s proficiency. Thus, flexi-cap funds cannot be considered safe investment options.
Yes, you can redeem your flexi cap mutual fund investments anytime. While there is no lock-in period for flexi cap funds, redemptions may be subject to exit load.