Flexi Cap Funds Popular Among Investors. Top 5 Funds Gave 25-29% Annual Returns in 5 Years. ₹1 Lakh Investment Today Exceeds ₹3 Lakh. These are Safe and Profitable Options for Long-Term Investment.
Flexi Cap Funds: Indian investors are now rapidly gravitating towards Flexi Cap Funds. In the past few years, funds in this category have provided excellent returns to long-term investors. Flexi Cap Funds are a type of equity mutual fund where the fund manager is not restricted to any single market capitalization (large, mid, or small). The fund manager has complete freedom to adjust the portfolio according to market conditions.
Why Investment in Flexi Cap Funds Increased
Although the total inflow into equity mutual funds decreased by 22% to ₹33,430 crore in August 2025, investor confidence in Flexi Cap Funds grew. According to AMFI data, Flexi Cap Funds received the highest investment of ₹7,679 crore in August. This figure was ₹7,654 crore in July. This indicates that investors consider this category to be stable and capable of delivering long-term returns.
Performance of Top 5 Flexi Cap Funds
The top 5 Flexi Cap Fund schemes include HDFC Flexi Cap Fund, Quant Flexi Cap Fund, JM Flexi Cap Fund, Bank of India Flexi Cap Fund, and Franklin India Flexi Cap Fund. These funds have provided investors with annual returns ranging from 25% to 29% over the past 5 years. For example, if an investor had invested ₹1 lakh five years ago, that investment would now be worth over ₹3 lakh.
HDFC Flexi Cap Fund has delivered an annual return of 29.10%. Quant Flexi Cap Fund is in second place with a return of 27.95%. JM Flexicap Fund and Bank of India Flexi Cap Fund have succeeded in delivering returns of 27.10% and 27.03% respectively. Franklin India Flexi Cap Fund has provided a return of 25.08%. These figures are based on the NAV as of September 10, 2025.
Benefits and Risks
Flexi Cap Funds offer both flexibility and diversification to investors. Fund managers can change investments among large, mid, or small-cap stocks at any time, according to the market. However, investors should understand that past returns in mutual funds do not guarantee future returns. Market fluctuations and global economic factors can impact returns.
Why Investors are Trusting Them
According to Suranjana Bortahkur, Head of Distribution and Strategic Alliances at Mirae Asset, "Flexi-cap and multi-cap funds have become favorites for long-term investment. In the last two months alone, there has been a steady inflow of approximately ₹7,600 crore. Investors consider their money in these funds to be safe and a place for high returns."
How Flexi Cap Funds Work
The specialty of Flexi Cap Funds is that the fund manager is not restricted to any single market capitalization. They can change the portfolio according to market conditions and stock performance. Dr. Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital, says, "The Flexi Cap category is being most preferred in terms of equity investment. It provides the fund manager with the flexibility to invest across different segments of the market. This increases the possibility of better returns for investors in the long term."
