Best Flexi Cap Funds in 2025
Flexi-cap fund in India is an open-ended category of equity mutual funds that offers an opportunity to invest across companies of all sizes and sectors. Unlike category-specific funds, there is flexibility to adjust the portfolio based on market conditions with such funds. As per SEBI guidelines, these mutual fund schemes must invest at least 65% of their assets in equity and related instruments.
Explore some of the best flexi cap funds in India as of 2025 to undertake calculated risks.
Advantages of Investing in the Best Flexi Cap Funds
You can reap the below-mentioned benefits by investing in some of the best flexi cap funds:
- Portfolio Diversification: As flexi cap funds allow investors to invest in multiple stocks of different sectors and sizes, portfolio diversification is one of the key benefits you can avail.
- High Return Potential: Flexi cap funds investing in stable large cap funds followed by small and mid cap funds with high growth potential, help investors earn potential high returns. Notably, flexi cap fund returns might vary based on market volatility.
- Fund Reallocation: The fund managers get the flexibility to review and adjust the fund’s allocation as needed, shifting between companies and sectors based on their performance over time in case of a flexi cap.
What Is the Difference Between Flexi Cap and Multi Cap Fund?
Both flexi cap and multi cap funds invest in large-cap, mid-cap and small-cap stocks. However, multi cap funds must allocate at least 25% to each category as per SEBI regulations. In contrast, flexi cap funds have the flexibility to invest in any proportion across these categories.
An Overview of Top Flexi Cap Funds
Here are the key things to know about some of the best flexi cap funds in India:
1. Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund (Direct Growth) invests 66.14% in shares of domestic companies. It includes 50.36% in large cap stocks, 2.43% in mid cap stocks and 3.13% in small cap stocks. In addition, the fund invests 10.17%, 0.6% and 9.57% in debt, government securities and low-risk securities respectively.
- Asset Under Management: ₹88,004.52 crore approximately
- Launch Date: May 2013
- Exit Load: 1% if sold before 730 days, 2% if sold before 365 days
- Expense Ratio: 0.63%
- Investment Details: Equity (79.04%), Debt (10.17%), Others (10.79%)
2. HDFC Flexi Cap Fund
HDFC Flexi Cap Fund (Direct Growth) invests 88.37% in Indian equities wherein 59.63%, 3.96% and 3.98% are in large, mid and small cap stocks respectively. The fund further invests 0.8% in government securities under its debt component.
- Asset Under Management: ₹64,124.15 crore approximately
- Launch Date: January 2013
- Exit Load: 1%
- Expense Ratio: 0.81%
- Investment Details: Equity (88.37%), Debt (0.8%), Others (10.83%)
3. Kotak Flexi Cap Fund
The investment portfolio of Kotak Flexi Cap Fund (Direct Growth) includes 97.45% domestic equities, comprising 56.36%, 26.64% and 4.38% in large, mid and small cap stocks. You can measure the performance of this open-ended fund with its benchmark Nifty 500 TRI after investment.
- Asset Under Management: ₹45,433.37 crore approximately
- Launch Date: January 2013
- Exit Load: 1%
- Expense Ratio: 0.64%
- Investment Details: Equity (97.45%), Others (2.55%)
4. UTI Flexi Cap Fund
UTI Flexi Cap fund (Direct Growth) invests 95.84% in shares of Indian companies, including 38.81%, 19.28% and 9.52% in large, mid and small cap stocks respectively. It further invests 0.42% in government securities.
- Asset Under Management: ₹23,403.53 crore approximately
- Launch Date: January 2013
- Exit Load: 1%
- Expense Ratio: 1.09%
- Investment Details: Equity (95.84%), Debt (0.42%), Others (3.74%)
5. SBI Flexi Cap Fund
SBI Flexi Cap Fund (Direct Growth) allocates 85.5% of its portfolio to Indian company shares, with 52.95% in large-cap, 9.92% in mid-cap and 4.74% in small-cap stocks. Additionally, it holds 0.15% in government securities as part of its debt component.
- Asset Under Management: ₹20,029.64 crore approximately
- Launch Date: January 2013
- Exit Load: 0.1% (if sold before 30 days)
- Expense Ratio: 0.95%
- Investment Details: Equity (91.53%), Debt (0.15%), Others (8.32%)
Key Takeaway
The best flexi cap funds let you invest in a mix of domestic stocks through a single fund. They help you spread your investment across companies of different sizes and sectors.
Ensure you check the expense ratio, past performance, growth potential and market conditions before you invest in a flexi cap fund. If you plan to redeem your investments, ensure you calculate short-term and long-term capital gain taxes for optimum returns.
Frequently Asked Questions
1. What is a flexi cap fund?
Flexi cap funds invest in large, mid and small cap stocks. In this scheme, at least 65% of the total investment needs to be in equities and equity-related instruments. The remaining 35% of the investment can be in other assets in a flexi cap fund.
2. Who should invest in the best flexi cap funds?
Investors with a high-risk appetite can choose flexi cap funds for their investment portfolio. Moreover, investors with a long-term investment horizon looking for portfolio diversification can also consider the best flexi cap funds.
3. What are the risks associated with the best flexi cap funds?
Flexi cap funds are prone to market risks wherein the fund performance is subject to market volatility. In addition, there can be risks in aligning an investor's financial strategy with the fund over the investment period.
4. What is an exit load in the best flexi cap funds?
An exit load is a fee or charge that mutual funds charge when investors redeem their investment in the short term. Several mutual funds charge an exit load of 1% when investors redeem their invested funds before 1 year.
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