Flexi cap funds cross rupees 5 lakh crore, HDFC leads the pack

India’s most popular mutual fund category, flexi cap mutual funds, have crossed a significant milestone. Data from the Association of Mutual Funds of India (AMFI) shows that the total assets under management (AUMs) in flexi cap mutual funds crossed the Rs. 5 lakh crore mark as of September 30, 2025. This makes flexi cap mutual funds the largest category in terms of asset management size. Besides, the net inflow in flexi cap funds was highest amongst all mutual funds in September at Rs. 7,029 crore.

Take a look at the performance. HDFC Flexi Cap mutual fund has given an absolute 5-year return of 255% and close to 350% in the last ten years and leads the flex cap mutual fund pack. JM Flexi Cap Fund clocked in an absolute return of 217% while Edelweiss Flexi Cap fund returned numbers of 165%.

Mutual fund experts opine that the popularity of flexi cap mutual funds stem from the fact that they offer, as the name suggests, complete flexibility to invest across market caps, namely large, mid and small caps, depending on market conditions. But here comes a warning. “Just like any other category of mutual funds, investment in flexi cap funds comes with a word of caution. Investors should opt for funds with a proven track record with a history of performance,” says DD Sharma, Managing Director, MF King.

Mutual fund experts say that recent offerings from Jio Black Rock and Capital Minds for example, need to prove their mettle and performance over a long term horizon in order to attract investor interest. Investors should not get confused with terms like Aladdin and related technology which are being offered to fund managers.

“New mutual funds and machine learning technologies are not prudent models of investing and there is no performance benchmark for them. Nothing can replace the experience and performance of a fund manager,” says Kapil Holkar, Founder & CEO, Equations.

In fact, India’s largest mutual fund research platform Value Research recently measured the performance of flexi cap funds and measured them on a daily five-year rolling return over the last five years. Value Research looked at funds which had a minimum 10-year history, undermining the importance of investing in proven funds as against new offerings which claim to be backed by machine learning and artificial intelligence technologies.