Flexi Cap Fund

What is a Flexi Cap Fund?

A flexi cap fund is a type of mutual fund that provides investors with the flexibility to invest in stocks across different market capitalizations, including large-cap, mid-cap, and small-cap companies. This category of funds allows fund managers to dynamically adjust the portfolio composition based on prevailing market conditions and opportunities. 

The adaptability enables investors to potentially benefit from various market scenarios, making Flexi Cap Funds a versatile option for those seeking a balanced and diversified investment approach. By not being restricted to a specific market segment, these funds aim to capture growth potential across the entire spectrum of the stock market.

Best Flexi Cap Funds in India

The Top 10 Best Flexi Cap Funds in India with the highest returns in 1 year, 3 years, and 5 years:

1. HDFC Flexi Cap Fund Regular - Growth

   An established fund with a primary focus on generating capital appreciation by investing in a diversified portfolio, typically exhibiting a Large-Cap bias for stability.

   Parameters	Details
   Fund Name	HDFC Flexi Cap Fund Regular-Growth
   NAV	₹ 2,091.01 (as on 2nd January, 2026)
   AUM	₹80,642.30 Crs
   Expense Ratio	1.37%
   Return 5 Years	28.76%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at very high risk
   Launch Date	1st January, 1995
   Asset Allocation	Equity: 86.18%, Debt: 0.55%, Others: 10.78%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Technology
   Top Holdings	Repo ICICI Bank Ltd HDFC Bank Ltd Axis Bank Ltd State Bank of India SBI Life Insurance Company Ltd Kotak Mahindra Bank Ltd Maruti Suzuki India Ltd Cipla Ltd HCL Technologies Ltd
   Fund Managers	Roshi Jain Dhruv Muchhal
   Fund Type	Open-ended

2. Quant Flexi Cap Fund Direct - Growth

   A high-conviction Flexi Cap Fund that uses a proprietary Quantitative (Quant) model to make dynamic and frequent allocation decisions across market caps.

   Parameters	Details
   Fund Name	Quant Flexi Cap Fund Direct-Growth
   NAV	₹ 112.12 (as on 2nd January, 2026)
   AUM	₹7,011.03 Crs
   Expense Ratio	0.66%
   Return 5 Years	27.23%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	NA
   Asset Allocation	Equity: 99.4%, Debt: 2.78%, Others: -2.18%
   Top Sectors	Real Estate Technology Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials
   Top Holdings	Reliance Industries Ltd Adani Power Ltd Repo Samvardhana Motherson International Ltd Adani Enterprises Ltd Aurobindo Pharma Ltd Jio Financial Services Limited Life Insurance Corporation of India Britannia Industries Ltd Larsen & Toubro Ltd
   Fund Managers	Sanjeev Sharma Sandeep Tandon Ankit A Pande Lokesh Garg Varun Pattani Ayusha Kumbhat Sameer Kate Yug Tibrewal
   Fund Type	Open-ended

3. Bank of India Flexi Cap Fund Regular - Growth

   A Bank of India Flexi Cap Fund that aims for long-term capital appreciation by investing predominantly in equity and equity-related securities across various market capitalizations.

   Parameters	Details
   Fund Name	Bank of India Flexi Cap Fund Regular-Growth
   NAV	₹ 35.61 (as on 2nd January, 2026)
   AUM	₹2,155.45 Crs
   Expense Ratio	1.99%
   Return 5 Years	24.72%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	29th June, 2020
   Asset Allocation	Equity: 99.15%, Debt: 0.35%, Others: 0.5%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Diversified Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	State Bank of India Vedanta Ltd Lloyds Metals and Energy Ltd ICICI Bank Ltd HDFC Bank Ltd Coforge Ltd Repo Hindustan Aeronautics Ltd CreditAccess Grameen Ltd Bharti Airtel Ltd
   Fund Managers	NA
   Fund Type	Open-ended

4. Bank of India Flexi Cap Fund Regular - Growth

   A Bank of India Flexi Cap Fund that aims for long-term capital appreciation by investing predominantly in equity and equity-related securities across various market capitalizations.

   Parameters	Details
   Fund Name	Bank of India Flexi Cap Fund Regular-Growth
   NAV	₹ 35.61 (as on 2nd January, 2026)
   AUM	₹2,155.45 Crs
   Expense Ratio	1.99%
   Return 5 Years	24.72%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	29th June, 2020
   Asset Allocation	Equity: 99.15%, Debt: 0.35%, Others: 0.5%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Diversified Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	State Bank of India Vedanta Ltd Lloyds Metals and Energy Ltd ICICI Bank Ltd HDFC Bank Ltd Coforge Ltd Repo Hindustan Aeronautics Ltd CreditAccess Grameen Ltd Bharti Airtel Ltd
   Fund Managers	NA
   Fund Type	Open-ended

5. Kotak Flexicap Fund Regular - Growth

   A large, established Flexi Cap Fund that seeks long-term capital appreciation from a portfolio generally focused on a few selected sectors.

   Parameters	Details
   Fund Name	Kotak Flexicap Fund Regular-Growth
   NAV	₹ 88.03 (as on 2nd January, 2026)
   AUM	₹53,293.04 Crs
   Expense Ratio	1.43%
   Return 5 Years	18.83%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at very high risk
   Launch Date	11th September, 2009
   Asset Allocation	Equity: 97.63%, Debt: 0.12%, Others: 2.25%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Diversified Energy & Utilities Financial Healthcare Materials Technology
   Top Holdings	ICICI Bank Ltd HDFC Bank Ltd Bharat Electronics Ltd State Bank of India Ultratech Cement Ltd Larsen & Toubro Ltd Jindal Steel & Power Ltd Zomato Ltd Axis Bank Ltd SRF Ltd
   Fund Managers	NA
   Fund Type	Open-ended

6. Motilal Oswal Flexi Cap Fund Regular - Growth

   A Flexi Cap Fund aiming for long-term capital appreciation by investing across market caps, built around the core philosophy of 'Buy Right, Sit Tight'.

   Parameters	Details
   Fund Name	Motilal Oswal Flexi Cap Fund Regular-Growth
   NAV	₹ 60.85 (as on 2nd January, 2026)
   AUM	₹13,726.64 Crs
   Expense Ratio	1.72%
   Return 5 Years	19.12%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹500
   Risk Level	Principal at very high risk
   Launch Date	28th April, 2014
   Asset Allocation	Equity: 80.73%, Others: 19.27%
   Top Sectors	Consumer Discretionary Energy & Utilities Healthcare Industrials Financial Technology
   Top Holdings	Reverse Repo/CBLO Coforge Ltd Polycab India Ltd Persistent Systems Ltd Dixon Technologies (India) Ltd Zomato Ltd Kalyan Jewellers India Ltd Trent Ltd Cholamandalam Investment & Finance Company Ltd CG Power & Industrial Solutions Ltd
   Fund Managers	Ajay Khandelwal Atul Mehra Niket Shah Rakesh Shetty Sunil Sawant
   Fund Type	Open-ended

7. Motilal Oswal Flexi Cap Fund Regular - Growth

   A Flexi Cap Fund aiming for long-term capital appreciation by investing across market caps, built around the core philosophy of 'Buy Right, Sit Tight'.

   Parameters	Details
   Fund Name	Motilal Oswal Flexi Cap Fund Regular-Growth
   NAV	₹ 60.85 (as on 2nd January, 2026)
   AUM	₹13,726.64 Crs
   Expense Ratio	1.72%
   Return 5 Years	19.12%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹500
   Risk Level	Principal at very high risk
   Launch Date	28th April, 2014
   Asset Allocation	Equity: 80.73%, Others: 19.27%
   Top Sectors	Consumer Discretionary Energy & Utilities Healthcare Industrials Financial Technology
   Top Holdings	Reverse Repo/CBLO Coforge Ltd Polycab India Ltd Persistent Systems Ltd Dixon Technologies (India) Ltd Zomato Ltd Kalyan Jewellers India Ltd Trent Ltd Cholamandalam Investment & Finance Company Ltd CG Power & Industrial Solutions Ltd
   Fund Managers	Ajay Khandelwal Atul Mehra Niket Shah Rakesh Shetty Sunil Sawant
   Fund Type	Open-ended

8. JM Flexicap Fund Direct Plan - Growth

   It seeks to provide capital appreciation by dynamically investing in stocks of various market capitalizations based on the valuation discount or premium among Large, Mid, and Small-Cap stocks.

   Parameters	Details
   Fund Name	JM Flexicap Fund Direct Plan-Growth
   NAV	₹ 111.48 (as on 2nd January, 2026)
   AUM	₹5,957.00 Crs
   Expense Ratio	0.52%
   Return 5 Years	26.79%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹1,000
   Risk Level	Principal at very high risk
   Launch Date	NA
   Asset Allocation	Equity: 98.41%, Debt: 0.31%, Others: 1.28%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	ICICI Bank Ltd Reliance Industries Ltd State Bank of India Larsen & Toubro Ltd Bharti Airtel Ltd Tech Mahindra Ltd Godfrey Phillips India Ltd HDFC Bank Ltd One 97 Communications Ltd Infosys Ltd
   Fund Managers	Ruchi Fozdar Asit Bhandarkar Satish Ramanathan Deepak Gupta
   Fund Type	Open-ended

9. Bajaj Finserv Flexi Cap Fund Regular - Growth

   A relatively newer Flexi Cap Fund aiming to generate long-term capital appreciation by investing predominantly across market caps.

   Parameters	Details
   Fund Name	Bajaj Finserv Flexi Cap Fund Regular-Growth
   NAV	₹ 15.08 (as on 2nd January, 2026)
   AUM	₹5,244.12 Crs
   Expense Ratio	1.8%
   Return 5 Years	N/A
   Minimum Investment	SIP ₹1000 & Lumpsum ₹500
   Risk Level	Principal at very high risk
   Launch Date	14th August, 2023
   Asset Allocation	Equity: 98.36%, Debt: 0.87%, Others: 0.77%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	HDFC Bank Ltd Reliance Industries Ltd State Bank of India Divi's Laboratories Ltd Infosys Ltd ICICI Bank Ltd Others CBLO Bajaj Finance Ltd Multi Commodity Exchange Of India Ltd Mahindra & Mahindra Ltd
   Fund Managers	Nimesh Chandan Siddharth Chaudhary Sorbh Gupta
   Fund Type	Open-ended

10. Invesco India Flexi Cap Fund Regular - Growth

    A Flexi Cap Fund seeking capital appreciation by dynamically investing in a mix of equity instruments across Large, Mid, and Small-Cap stocks.

    Parameters	Details
    Fund Name	Invesco India Flexi Cap Fund Regular - Growth
    NAV	₹ 18.99 (as on 2nd January, 2026)
    AUM	₹3,425.76 Crs
    Expense Ratio	1.88%
    Return 5 Years	N/A
    Minimum Investment	SIP ₹1000 & Lumpsum ₹1,000
    Risk Level	Principal at very high risk
    Launch Date	14th February, 2022
    Asset Allocation	Equity: 96.68%, Debt: 1.04%, Others: 1.89%
    Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Real Estate Technology
    Top Holdings	ICICI Bank Ltd HDFC Bank Ltd Zomato Ltd Interglobe Aviation Ltd Trent Ltd Repo Larsen & Toubro Ltd Cholamandalam Investment & Finance Company Ltd Max Healthcare Institute Ltd TVS Motor Company Ltd
    Fund Managers	Taher Badshah Amit Ganatra
    Fund Type	Open-ended

What are the Key Features of Flexi Cap Funds?

The key features of flexi cap funds are as follows:

1. Ultimate Flexibility in Market Cap: 

   The fund is not restricted by predefined investment minimums across large, mid, and small-cap segments (unlike Multi Cap funds).

2. Fund Manager Discretion: 

   The fund manager has complete freedom to allocate assets across large-cap, mid-cap, and small-cap stocks in any proportion they deem fit.

3. Dynamic Strategy: 

   The manager can dynamically shift the portfolio's market-cap bias based on the current market cycle, sector valuations, and economic outlook.

4. Broad Diversification: 

   The fund invests across the entire market capitalization spectrum, offering diversification that aims to capture stability from large caps and higher growth potential from mid/small caps.

What is the Performance of the Flexi Cap Fund – Fund for All Seasons?

Flexi-cap funds are like the all-in-one tool in the world of investments. They're designed to be adaptable, offering a range of options across Large Cap, Mid-Cap, and Small Cap Funds. This flexibility gives investors a strategic edge, especially during unpredictable market phases. It's like having multiple arrows in your quiver, ready to tackle any financial terrain.

Below are the returns of the 3 categories that combine and form the Flexi Cap Fund

Who Should Invest in the Best Flexi Cap Funds in 2025?

Flexi Cap Funds are best suited for investors who meet the following key criteria:

1. Long-Term Investment Horizon (5-7+ Years): 

   They are the equity-oriented funds with exposure to volatile mid and small-cap segments. They require a long-term commitment, typically 5 to 7 years or more, to allow the fund manager's dynamic allocation strategy to navigate complete market cycles.

2. Moderate to High Risk Tolerance: 

   Flexi Cap Funds are classified as "Very High Risk". While the flexibility helps with stability during market dips, their mandate allows significant exposure to the volatile mid and small-cap segments. Investors must accept the potential for significant short-term fluctuations in value.

3. Desire for Simplified, Diversified Equity: 

   They are ideal for investors who want broad equity market exposure through a single fund, eliminating the need to select and manage separate funds for each market cap. This simplifies portfolio management while ensuring the portfolio benefits from growth wherever it emerges.

4. Belief in Active Fund Management: 

   These funds rely heavily on the skill and timely decisions of the fund manager to successfully shift allocations across market caps and sectors. Investors should choose a fund with a manager who has a proven, consistent track record across various bull and bear market cycles.

How are Flexi Cap Funds Taxed in India?

The taxation rules for Flexi Cap Funds in India, which are classified as Equity-Oriented Mutual Funds (min. 65% equity), are classified. The current summary of how the capital gains are taxed on STCG and LTCG:

1. Short-Term Capital Gains (STCG):

   • Applicable if units are sold within 12 months of purchase.
   • Gains are taxed at a flat rate of 20% (plus applicable surcharge and cess).

2. Long-Term Capital Gains (LTCG):

   • Applicable if units are sold after 12 months of purchase.
   • Gains are taxed at 12.5%.
   • Crucially, LTCG up to ₹1.25 Lakh in a financial year is exempt from tax. Tax is only paid on the amount exceeding this annual threshold.

These updated rates and exemption limit are generally applicable for the Financial Year 2025-26. Investors do not get the benefit of indexation for LTCG on these funds.

What is the Difference between Flexi Cap Funds and Multi Cap Mutual Funds? 

Both are highly diversified equity funds (minimum 65% equity allocation for Flexi Cap and minimum 75% for Multi Cap) that invest across large-cap, mid-cap, and small-cap segments. The fundamental difference lies in the fund manager's flexibility due to SEBI's mandated minimum allocations.

How to Invest in Flexi Cap Funds?

To invest in the Flexi Cap Fund from Policybazaar, follow these steps:

• Log in to your existing Policybazaar account or create a new one.
• Fill in your name, city, age, and contact numbers to assess personalized benefits.
• Choose plans from HDFC Life that are available.
• Click "Get Details" for more information on the Flexi Cap Fund.
• Review the plan details and click "Proceed" to continue.
• Enter the investment amount and select the payment mode.
• Provide KYC details for regulatory compliance.
• Complete the payment process for confirmation of your purchase.

Wrapping Up

A Flexi Cap Fund is the superior active equity choice due to its dynamic tactical management. The core advantages are the ultimate flexibility in market cap, fund manager discretion, dynamic strategy, etc. Simultaneously, this freedom enables optimal return capture by concentrating capital solely on the market segment (large, mid, or small) offering the best growth potential. For taxation, it is treated as an equity scheme: profits held over 12 months are LTCG, while those held under 12 months are STCG.