Among the funds analysed, Parag Parikh Flexi Cap Fund stands out for its strong large-cap bias. Around 91.01% of its equity portfolio is allocated to large-cap stocks, while mid-caps account for 3.95% and small-caps 5.04%.
This makes the scheme an outlier among flexi cap funds and means investors looking for greater exposure to mid- and small-cap stocks may get a very different portfolio from another fund in the same category.
Parag Parikh also has the lowest overall equity allocation among the 10 funds at 81.37%, with 8.05% in debt, 4.17% in real estate and 6.42% in cash and equivalents.
More of midcaps
At the other end of the spectrum, some flexi cap funds have allocated substantially more of their equity portfolios to mid- and small-cap stocks.
ICICI Prudential Flexicap Fund has 10.03% in mid-caps and 25.29% in small-caps, taking its combined mid- and small-cap exposure to 35.32%.
UTI Flexi Cap Fund has 27.07% in mid-caps and 12.75% in small-caps. Aditya Birla Sun Life Flexi Cap has an even higher combined mid- and small-cap allocation of 43.53%, comprising 27.17% mid-caps and 16.36% small-caps.
These differences can have a meaningful impact on how funds behave across market cycles, particularly when smaller companies outperform or underperform large-cap stocks.
Equity allocation
The funds also differ in how much of their overall portfolios are invested in equities.
| Flexi Cap Fund | Equity | Debt | Large Cap* | Mid Cap* | Small Cap* |
|---|---|---|---|---|---|
| Parag Parikh Flexi Cap | 81.37% | 8.05% | 91.01% | 3.95% | 5.04% |
| HDFC Flexi Cap | 94.04% | 0.49% | 76.75% | 14.05% | 9.20% |
| Kotak Flexicap | 98.45% | 0.21% | 73.18% | 23.59% | 3.23% |
| Aditya Birla SL Flexi Cap | 99.06% | — | 56.47% | 27.17% | 16.36% |
| UTI Flexi Cap | 97.09% | 0.23% | 60.18% | 27.07% | 12.75% |
| SBI Flexicap | 97.78% | 0.79% | 63.35% | 22.93% | 13.72% |
| ICICI Pru Flexicap | 96.77% | 0.25% | 64.68% | 10.03% | 25.29% |
| Franklin India Flexi Cap | 95.61% | 0.26% | 77.48% | 10.85% | 11.67% |
| Axis Flexi Cap | 94.69% | 6.45% | 61.99% | 21.31% | 16.70% |
| Canara Robeco Flexi Cap | 96.34% | — | 74.26% | 20.64% | 5.10% |
Large-, mid- and small-cap percentages are of the equity portion, according to the provided data.
What should investors look at?
The data shows why investors should not assume that all flexi cap funds provide the same diversification simply because they belong to the same category. The category gives fund managers flexibility, but individual investment strategies can result in substantially different portfolios.
Investors should therefore examine market-cap allocation, overall equity exposure, debt and cash holdings before selecting a flexi cap fund. A scheme with 90% or more of its equity portfolio in large caps can behave very differently from one with a sizeable allocation to mid- and small-cap stocks.
Flexicap funds in July 2026
Flexi Cap funds saw ₹4,709 crore of inflows in July, the lowest monthly inflow since May 2025, although the category’s AUM remained significantly higher at ₹15.61 lakh crore. In comparison, Small Cap funds attracted ₹7,767 crore, the highest among the three categories, while their average July return stood at 0.81%. Mid Cap funds received ₹6,192 crore and delivered an average return of 1.34%.
Large Cap funds, meanwhile, recorded an outflow of ₹1,321 crore, despite delivering the highest average July return of 1.90%. The data shows that while investors continued to favour Small and Mid Cap funds for fresh allocations, Large Cap funds performed better during the month, whereas Flexi Cap flows moderated despite the category remaining the largest by AUM.
Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
