Flexi-Cap mutual funds invest dynamically across large-, mid-, and small-cap stocks, giving fund managers the freedom to tilt their allocations based on market conditions.
Over the past five years, several Flexi-Cap funds have delivered annualised returns of more than 20%, underscoring their long-term growth potential.
These funds are desirable in volatile markets, as their flexibility allows them to adapt and capture opportunities across different market capitalizations.
Flexi-Cap mutual funds have become increasingly popular among Indian investors who wish to stay in the equity realm but are not fixed on either large-cap or small-cap. As market volatility increases and economic growth becomes more dynamic, Flexi-Cap funds offer a balanced approach to capturing upside across large-, mid-, and small-cap indices.
For long-term investors, such funds may offer high growth and diversification. Recent statistics indicate that a number of high-performing Flexi-Cap mutual funds in 2025 have yielded over 20 percent annualized returns in the last five years, which makes them attractive choices for wealth builders.
Here are some of the top Flexi-Cap mutual funds to consider for 2025:
The more stable and high-performing Flexi-Cap schemes include Parag Parikh Flexi-Cap Fund. This MF has a global tilt in its equity portfolio and invests in large-, mid-, and small-cap stocks. During the past few years, it has had good returns.
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HDFC Flexi-Cap Fund has always performed well in the category, particularly on a 5-year CAGR basis. This MF is advantageous because it has a large asset base and the ability to implement a dynamic strategy, allowing the fund manager to shift the fund to the market-cap segment based on valuation opportunities.
JM Flexicap Fund is another powerful Flexi-Cap targeting growth. This fund has demonstrated strong performance over multiple years, driven by its exposure to mid- and small-cap firms with attractive valuations.
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Franklin India Flexi-Cap fund provides a long-term, value-based growth strategy, combining the stability of large caps with the growth potential of mid- and small-caps. Its risk-adjusted returns have attracted a large number of conservative but growth-oriented investors.
Flexi-Cap funds are excellent choices for investors looking to deploy their equity capital flexibly and with a focus on growth in 2025. Parag Parikh Flexi-Cap fund offers global exposure and long-term stability, while HDFC Flexi-Cap fund combines strong performance with scale.
JM Fund has greater potential for aggressive growth, while Franklin India employs a value-based, well-balanced strategy. Using a combination of these Flexi-Cap funds can create a solid foundation for wealth generation through agile Flexi-Cap investing.
What exactly is a Flexi-Cap mutual fund?
Flexi-Cap funds are equity mutual funds that invest in large-, mid-, and small-cap stocks, with no specific mandate, allowing fund managers to adjust allocations as they deem appropriate.
Is investing in Flexi-Cap funds riskier than large-cap funds?
They can be, since they can have more mid and small-cap stocks. However, the possibility of higher returns accompanies that risk, and the flexibility helps manage market cycles.
What returns have top Flexi-Cap funds historically delivered?
The data from AMFI indicates that some of the top Flexi-Cap funds have delivered annualised returns of over 20% in the last five years.
Should I invest in one or multiple Flexi-Cap funds?
It will be based on your level of risk-taking and the investment term. One properly selected Flexi-Cap fund may do you well, but two or three may help in diversification and lower the risk associated with funds.
Is a Flexi-Cap fund good for a 5-year SIP?
Yes, depending on a 5+ horizon, Flexi-Capital funds can prove highly efficient at building wealth, as they vary with market caps and can be carried through booms in other areas.