HDFC Bank was the most added stock across Flexi Cap funds in December 2025, with six major schemes increasing their exposure, signalling strong confidence.
Maruti Suzuki was under selling pressure as two Flexi Cap funds reduced their holding with the changing valuation and investor sentiment in the auto sector.
Sector allocation shifted strongly to Communication Services and Real Estate, both showing strong six-month growth.
Market uncertainty makes investors anxious when selecting between large-, mid-, and small-cap funds. This is where Flexi Cap mutual funds come into play. They offer a smoother approach by shifting across market segments in response to favorable or unfavorable conditions. These are among the best options for investors seeking stability. December 2025 highlights how these funds positioned themselves for stability and long-term growth.
Some top Flexi cap funds with solid performance and adept portfolio management are:
Parag Parikh Flexi Cap Fund
HDFC Flexi Cap Fund
UTI Flexi Cap Fund
PGIM India Flexi Cap Fund
Aditya Birla Sun Life Flexi Cap Fund
SBI Flexi Cap Fund
Canara Robeco Flexi Cap Fund
The above fund stood out due to its focus on fundamentals, long-term growth stocks, and dynamic rebalancing. They offered good returns with low risk.
One of the main factors contributing to stronger performance was diversified exposure to sectors such as financial services, technology, industrials, healthcare, communications, and even real estate. The category witnessed a significant increase in allocations to Communication Services and Real Estate over the last six months, both recording double-digit growth. This broader spread allowed the funds to cushion the dips while capturing high-growth opportunities in the market.
| Sector | % Increase |
|---|---|
| Real Estate | 43.87% (Rs. 6.53K Cr) |
| Communication | 43.99% (Rs. 33.1K Cr) |
| Tech | 22.66% (Rs. 49.43K Cr) |
| Utilitie | 19.40% (Rs. 19.06K Cr) |
Also Read: Top Flexi Cap Mutual Funds to Invest in 2025
HDFC Bank was the biggest gainer among Flexi Cap funds. Of 45 Flexi Cap schemes, six added exposure to this bank in December 2025. This indicates strong confidence among fund managers over the bank's long-term earnings power and its leadership in the financial sector.
The additions were significant among most major fund houses. HDFC Flexi Cap Fund expanded its holding by 5.33%, while Kotak Flexi Cap Fund increased its stake by 12.50%. ICICI Prudential Flexicap Fund further increased its holding by 19.19%. Parag Parikh Flexi Cap Fund added 0.53%, and JM Flexicap Fund surged 4.25%. These were strong inflows representing net additions from Rs. 9.51 crore to Rs. 380.4 crore, depending on the fund.
Fund managers are expecting the bank's consistent loan growth and strong balance sheet to support steady returns, especially in uncertain markets. The bank's leadership position makes it a preferred large-cap pick for long-term wealth creation.
Maruti Suzuki India was the most sold stock as two Flexi Cap funds reduced their exposure to the company. HDFC Flexi Cap Fund decreased its holdings by 9.09%, resulting in a net outflow of Rs. 320.58 crore. On its part, the JM Flexicap Fund trimmed its stake by 14% with a relatively smaller outflow of Rs. 22.44 crore.
The selling suggests that fund managers have become wary of auto-sector valuations and shifting demand. Some funds could also be reallocating from consumer cyclical stocks into financials, technology, or communication services, where growth signals seem stronger. The adjustments reflect the dynamic nature of Flexi Cap funds, which are free to change course quickly in response to market trends.
Also Read: Best Flexi-Cap Mutual Funds to Invest in 2025
Flexi Cap mutual funds remain apart because they adjust to market changes without requiring investors to make constant decisions. The active shifts across sectors and stocks that helped these resilient funds are reflected in December 2025. For the long-term investor, Flexi Cap funds remain a dependable, flexible option.
Top Mid-Cap Mutual Funds to Invest in December 2025
1. Why do Flexi Cap funds add more shares of HDFC Bank in December 2025?
Flexi Cap funds added HDFC Bank as fund managers saw strong long-term growth and stability in the financial sector amid a volatile market. The robust balance sheet, steady loan growth, and consistent performance made the bank a safer large-cap choice for boosting portfolio resilience.
2. Why did some Flexi Cap funds sell Maruti Suzuki in December 2025?
Funds trimmed their Maruti Suzuki holdings due to valuation concerns, shifting demand patterns, and evolving sector trends. With market volatility on the rise, managers preferred to reallocate from autos into financials, tech, or communication services, where growth signals looked stronger. This helped them manage risk and rebalance portfolios more efficiently.
3. Which sectors did Flexi Cap funds prefer in the last six months?
Flexi-cap funds upped their exposure to Communication Services, Real Estate, Technology, Financial Services, and Industrials. Of these, Communication Services and Real Estate posted the highest percentage gains, indicating that these funds were positioned for growth in faster-growing sectors. This helped balance the returns across changing market conditions.
4. Are Flexi Cap mutual funds good for new and confused investors?
Yes, Flexi Cap funds are often ideal for new or unsure investors, as the fund manager decides how much to invest in large-, mid-, or small-cap stocks. Investors do not have to time the market or switch categories themselves. It essentially auto-adjusts according to the market.
5. How do Flexi Cap funds manage market volatility?
Flexi Cap funds reduce volatility by reallocating capital to stronger or more stable segments when markets get choppy. They can increase large-cap exposure for safety or move into mid- and small-caps when growth picks up. They go a long way in protecting returns with the flexibility to capture opportunities across market cycles.