Mutual Funds · Flexi cap
Flexi-Cap Funds
SEBI's most flexible category — fund manager can invest any % across large/mid/small-cap with no minimum allocation per bucket. Best of all worlds: large-cap stability + mid/small-cap upside, with tactical shifts based on valuation. Most popular new-money equity category in India (~₹3.5L Cr AUM). Typical 3-yr CAGR: 16-22%.
Who needs this
Investors who want one-fund equity exposure without picking large/mid/small allocation themselves. 5-7 yr horizon. Believers in active management — manager's freedom is the entire pitch here.
Category at a glance
Equity allocation
65-100%
No cap floor
Stock universe
Open
Any market cap
Typical 3-yr CAGR
16-22%
Beats large-cap median
Expense ratio (direct)
0.6-1.5%
Active premium
Volatility (std dev)
16-20%
Between large + mid
Tax (LTCG)
12.5%
Above ₹1.25L/yr
Top 5 flexi-cap funds
Source: AMFI + AMC factsheets · refreshed quarterly
| Fund | AMC | Expense % | 3y CAGR |
|---|---|---|---|
| Parag Parikh Flexi Cap | PPFAS | 0.63% | 22.4% |
| HDFC Flexi Cap | HDFC | 0.78% | 19.8% |
| Quant Flexi Cap | Quant | 0.71% | 25.1% |
| Kotak Flexi Cap | Kotak | 0.80% | 17.5% |
| Aditya Birla SL Flexi Cap | Aditya Birla | 0.93% | 18.9% |
Key decisions
- Q1
Flexi-cap or multi-cap?
Multi-cap MUST hold ≥ 25% in each of large/mid/small. Flexi-cap has zero minimum. If you want forced mid/small exposure: multi-cap. If you want manager freedom: flexi-cap.
- Q2
How much portfolio share?
20-40% of equity. Pair with 1 large-cap index + 1 small-cap fund for full diversification.
- Q3
Direct or regular?
Direct — saves 0.6-0.9% expense. Available via Coin / Groww / Kuvera / MFCentral.
SEBI rules + scheme specifics
- Flexi-cap (SEBI Nov 2020): minimum 65% equity, no per-bucket allocation.
- Differs from multi-cap: multi-cap requires ≥ 25% in each of large/mid/small.
- Manager freedom is the structural feature — high-conviction picks rewarded.
- LTCG: 12.5% on gains > ₹1.25L/yr (held ≥ 12 months).
Calculators + tools
All mutual funds
Recommended →Free MF Overlap Analyzer — see if your funds duplicate