Flexi cap mutual funds have the freedom to invest across large cap, mid cap and small cap stocks in any proportion. This flexibility allows fund managers to shift allocations based on market conditions and valuations, potentially capturing opportunities across the entire market spectrum. Flexi cap funds are an excellent choice for investors who want diversified equity exposure without worrying about market cap restrictions.
SEBI requires flexi cap funds to invest at least 65% in equity, but places no restrictions on market cap allocation. This makes them one of the most versatile equity fund categories, well-suited for investors with a 5+ year horizon seeking a single-fund equity solution.
| # | Fund Name | NAV (₹) | 1Y Return ▼ | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|---|
| 1 | quant Flexi Cap Fund - Growth Option | 122.20 | +11.17% | +18.40% | +16.27% |
| 2 | Navi Flexi Cap Fund | 28.77 | +10.20% | +12.35% | +13.43% |
| 3 | ITI Flexi Cap Fund | 20.61 | +9.53% | +19.64% | — |
| 4 | BANK OF INDIA Flexi Cap Fund Direct Plan -Growth | 41.42 | +9.09% | +21.59% | +17.81% |
| 5 | Aditya Birla Sun Life Flexi Cap Fund - Growth | 2,165.06 | +8.34% | +16.12% | +13.40% |
| 6 | Helios Flexi Cap Fund - Direct Plan - Growth Option | 16.15 | +7.95% | — | — |
| 7 | ICICI Prudential Flexicap Fund | 21.12 | +7.70% | +16.46% | +16.20% |
| 8 | Bajaj Finserv Flexi Cap Fund | 16.24 | +6.77% | — | — |
| 9 | TRUSTMF Flexi Cap Fund | 12.20 | +5.54% | — | — |
| 10 | LIC MF Flexi Cap Fund | 115.25 | +5.51% | +12.21% | +11.90% |
| 11 | WhiteOak Capital Flexi Cap Fund Direct Plan-Growth | 19.02 | +4.89% | +16.63% | — |
| 12 | 360 ONE FLEXICAP FUND | 16.57 | +4.77% | +17.69% | — |
| 13 | HDFC Flexi Cap Fund - Growth Option | 2,248.74 | +4.20% | +17.41% | +18.68% |
| 14 | Mirae Asset Flexi Cap Fund | 17.00 | +3.97% | +13.65% | — |
| 15 | Unifi Flexi Cap Fund | 10.65 | +3.80% | — | — |
| 16 | Axis Flexi Cap Fund | 30.72 | +3.57% | +13.61% | +11.05% |
| 17 | Edelweiss Flexi Cap Fund - Direct Plan - Growth Option | 45.51 | +3.05% | +15.54% | +14.96% |
| 18 | Union Flexi Cap Fund - Direct Plan - Growth Option | 58.73 | +2.73% | +12.69% | +12.38% |
| 19 | HSBC Flexi Cap Fund | 254.01 | +2.68% | +16.01% | +14.68% |
| 20 | Baroda BNP Paribas Flexi Cap Fund - Direct Plan - Growth Option | 16.80 | +2.37% | +13.81% | — |
Data sourced from AMFI & mfapi.in. Returns are annualised CAGR. Past performance doesn't guarantee future results. Last updated: 19 Jul 2026
Frequently Asked Questions
What is the difference between flexi cap and multi cap funds?
Flexi cap funds have no minimum allocation to any market cap segment, giving complete freedom to the fund manager. Multi cap funds must invest at least 25% each in large, mid and small caps as per SEBI rules.
Are flexi cap funds good for long-term investment?
Yes, flexi cap funds are excellent for long-term investors as the fund manager can dynamically adjust the portfolio based on market conditions and valuations across market caps.
What is the risk level of flexi cap funds?
Flexi cap funds carry moderate to moderately high risk. The actual risk depends on the fund manager’s allocation strategy at any given time.
Can I use flexi cap as my only equity fund?
Yes, flexi cap funds can serve as a core equity holding due to their diversified nature across market caps. However, adding category-specific funds can further optimise returns.
What Are Flexi Cap Mutual Funds?
Flexi cap mutual funds have the freedom to invest across the entire market capitalisation spectrum — large caps, mid caps, and small caps — in any proportion, with a minimum 65% allocation to equity. Unlike multi cap funds (which must maintain 25% each in large, mid, and small caps), flexi cap funds give the fund manager complete discretion to shift allocations based on market conditions and valuations. This flexibility makes flexi cap funds one of the most versatile equity fund categories.
Why Flexi Cap Funds Are Ideal for Core Equity Allocation
Flexi cap funds are often recommended as the single best equity fund category for most investors. The fund manager can increase large cap allocation during expensive markets for safety, shift to mid and small caps during corrections for growth, and dynamically adjust based on sectoral and bottom-up opportunities. This built-in market-cap diversification means you don’t need to separately allocate to large, mid, and small cap funds — a single good flexi cap fund can serve as your entire equity portfolio.
Historically, top flexi cap funds have delivered 13-16% CAGR over 10-year periods, with lower maximum drawdowns than pure mid/small cap funds. For a first-time equity investor starting a SIP, a flexi cap fund is arguably the best starting point — it gives you exposure to India’s entire growth story in one investment, managed by a professional who adjusts the mix as markets evolve.
Flexi Cap vs Multi Cap vs Large & Mid Cap Funds
The key difference is allocation flexibility. Multi cap funds must maintain minimum 25% each in large, mid, and small caps (75% is mandated, only 25% is flexible). Large & mid cap funds must hold minimum 35% each in large and mid caps. Flexi cap funds have no such mandates — a manager could theoretically hold 90% large caps if they believe that’s the best risk-reward at that point.
This flexibility is a double-edged sword. A skilled manager uses it to add value; a less skilled one might drift excessively or hold too much cash. When evaluating flexi cap funds, check the historical allocation patterns — does the manager actually use the flexibility, or does the fund consistently look like a de-facto large cap fund? Also check portfolio overlap with other funds in your portfolio to avoid unintended concentration.
How to Choose the Best Flexi Cap Fund
Key selection criteria: Consistent alpha — the fund should beat the Nifty 500 or BSE 500 benchmark over 3, 5, and 7-year periods. Active allocation — the fund should demonstrate meaningful shifts in market cap allocation over time (check the monthly factsheets). Risk management — look at the maximum drawdown during corrections like March 2020 and compare with peers. Expense ratio — direct plans of flexi cap funds range from 0.4-1.2%; lower is better when performance is similar. Use our MF returns calculator to track your actual returns against the benchmark.
Investment Strategy for Flexi Cap Funds
For most investors, a flexi cap fund can be the core holding representing 40-60% of your equity portfolio, complemented by a satellite allocation to Nifty 50 index fund (for cost-efficient large cap exposure) and optionally a small cap fund (for additional growth). Invest through a monthly SIP and commit to a minimum 7-year horizon. During market corrections of 15%+ from peaks, consider making additional lump sum investments to take advantage of lower valuations — flexi cap fund managers are likely increasing mid/small cap allocation at exactly those times, amplifying the opportunity.
