11 best flexi cap mutual fund schemes with highest returns in past ten years

Due to the erratic behavior of the stock market, many investors are overwhelmed with their investment decisions. The ongoing debate about whether to invest in large-cap, mid-cap, or small-cap sectors has intensified, causing many, especially those new to investing, to turn to flex funds – capital. These funds enable investors to allocate their investments across all market capitalization categories.

As per SEBI regulations, flex-capital mutual funds are categorized as equity-oriented mutual funds. This designation mandates that a minimum of 65 percent of its total assets must be invested in equity and equity-related instruments, while the remaining 35 percent can be allocated to debt or other instruments.

Benefiting from flexicap fund investments

One significant advantage of these funds is the flexibility afforded to fund managers, allowing them to dynamically adjust the portfolio’s asset allocation based on their market outlook and investment objectives. For example, if the fund manager perceives that large-cap stocks are overvalued, he has the flexibility to reduce the allocation to large-cap stocks and increase the allocation to mid-cap or cap stocks.

The inherent adaptability of flex capital funds enables them to capture growth opportunities across the entire market spectrum, which can deliver superior risk-adjusted returns compared to funds focused on a single market capitalization category . However, it is worth noting that flexi-capital funds may experience increased volatility due to their exposure to different market capitalizations.

In fact, some flex funds have performed well over the past five to 10 years, allowing investors to take advantage of different market capitalizations and frequent market dips in stocks belonging to different sectors. The following table shows some of the best performing flexicap funds along with their results, highlighting how non-ambitious investors have benefited from putting their money in these funds.

The name of the fund

10-year returns (in %)

Quant Abundant Cap Fund


Parag Parikh Flexible Cap Fund


JM Flexible Cap Fund


Franklin India Flexible Cap Fund


Aditya Birla Lifetime Flexible Cap Fund


HDFC Flexible Cap Fund


SBI Flexible Cap Fund


Kotak flexible cap fund


RCS Flexible Cap Fund


HSBC Flexible Cap Fund


Canara Robeco Flexible Cap Fund1


Source: AMFI (As of November 16, 2023)

Investment in the flexicap fund category is driven by the concept of avoiding the need to make precise market capitalization decisions. These funds allocate investments to companies of various sizes, eliminating the need for specific market selections. This diversification strategy aims to reduce risks associated with individual market segments, ultimately contributing to increased stability within the overall portfolio.

These funds prove to be suitable for long-term investment objectives, as their goal is to benefit from the compounding impact of equity returns over a long period. Its adaptive nature allows for deft navigation through market cycles, resulting in risk-adjusted returns that outperform more rigid investment strategies.

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Updated: 17 November 2023, 10:24 AM IST

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