Investing in Flexi Cap Funds helps in diversification across market caps, a strategy that minimises downside risk and maximises portfolio returns over the long run.
Due to their versatile investment mandates, flexi cap funds are well-positioned to employ a dynamic investment strategy, investing across various market cap segments based on the market outlook.
Depending on market conditions, liquidity conditions, and valuations, the fund manager of a Flexi Cap Fund has the flexibility to manoeuvre among large-cap, mid-cap, and small-cap stocks depending on the market insights.
This gives flexi cap funds the opportunity to capitalise on evolving market dynamics more quickly compared to other categories and potentially generate high alpha for investors.
In this editorial, we look at three flexi cap funds that turned a monthly SIP of Rs 10,000 into over Rs 3 million (m) in 10 years.
#1 Quant Flexi Cap Fund
Originally launched as a thematic fund in September 2008 by Escorts Mutual Fund, this fund underwent multiple changes in its mandate before being classified as a flexi cap fund in January 2022.
The fund follows a high portfolio churn investment strategy to capitalise on the available growth opportunities and dynamically shifts the portfolio mix across market caps.
It currently has relatively low AUM of Rs 70 billion (bn).
A monthly SIP of Rs 10,000 over a 10-year period, meaning a total investment of Rs 1.2 m, in Quant Flexi Cap Fund would have now grown to Rs 3.71 m.
This translates into an XIRR of 21.4%.
Its top stock holdings are Adani Power, Samvardhana Motherson International, Adani Enterprises, ICICI Prudential AMC, and Aurobindo Pharma.
#2 HDFC Flexi Cap Fund
Launched in January 1995, HDFC Flexi Cap Fund is among the oldest schemes in the category, known for its focus on fundamentally sound stocks and holding them with a long-term view.
It follows a balanced approach by combining growth and value investing styles, which helps it deliver strong risk-adjusted returns over the long term.
The fund currently has an AUM of Rs 1 trillion (tn), the second largest in the category and one of the largest among equity funds.
A monthly SIP of Rs 10,000 over a 10-year period, meaning a total investment of Rs 1.2 m, in HDFC Flexi Cap Fund would have now grown to Rs 3.02 m.
This translates into an XIRR of 17.6%.
Its top stock holdings are ICICI Bank, Axis Bank, HDFC Bank, SBI, and SBI Life Insurance Company.
#3 Parag Parikh Flexi Cap Fund
Launched in May 2013, Parag Parikh Flexi Cap Fund has proved its potential in identifying high-conviction stocks that have turned out to be long-term winners.
The fund prefers fundamentally sound stocks available at reasonable or attractive valuations along with some exposure to overseas equities which helps it mitigate the downside risk and also do well during recovery phases.
It currently has a mammoth AUM of Rs 1.4 tn, the largest among equity funds.
A monthly SIP of Rs 10,000 over a 10-year period, meaning a total investment of Rs 1.2 m, in Parag Parikh Cap Fund would have now grown to Rs 3.01 m.
This translates into an XIRR of 17.5%.
Its top stock holdings are HDFC Bank, Power Grid Corporation of India, ITC, Coal India, and ICICI Bank.
Conclusion
Flexi Cap Funds offer flexibility to the fund manager to allocate assets based on market conditions and opportunities.
Accordingly, most Flexi Cap Funds invest a substantial portion across market caps to benefit from the available opportunities and create a diversified portfolio.
These funds are suitable for investors looking to benefit from the stability of large caps and at the same time boost portfolio growth with the high growth potential of mid and small caps.
Flexi Cap funds remain an attractive option for investors seeking growth through equities while maintaining flexibility across market caps and sectors.
However, one should carefully select the schemes within the category, ideally preferring schemes with consistent long-term performance track records.
Besides, opting for the SIP mode to invest in the category can help minimise the impact of market volatility and significantly compound wealth over a period.
Note: Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Returns are as of 24 June 2026 and in XIRR (%)
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
Portfolio data is as of 31 May 2026
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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