The Indian equity market continues to show strength, with both Nifty 50 and BSE Sensex reaching new highs.
Even though this is encouraging, market valuations are still high with Nifty 50 trading at a PE of around 22.42 and BSE Sensex at 22.69, which can be a cause of a correction.
In such an atmosphere, Flexi Cap funds have gained popularity. This is because they offer the advantage of dynamically splitting assets among large, mid, and small-cap shares.
Unlike traditional large-cap or mid-cap funds, the Flexi Cap schemes give complete leeway to fund managers to invest as per the market situation. This freedom has proved to be a huge strength, especially in uncertain or sideways markets.
Flexi Cap funds have leveraged the flexibility to provide competitive returns. They have been favored by investors who are seeking long-term growth with diversified risk exposure.
For investors seeking to build core equity exposure through an all-weather approach, Flexi Cap funds make for a tempting option.
Here, in this editorial we are discussing the top return flexi cap mutual funds of the last 10 years on SIP return basis.
For comparison, over the last decade, the Nifty 500 TRI—the benchmark for most Flexi Cap funds—has returned a CAGR of approximately 14.1%.
#1 Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund has become one of the top mutual funds in India, with AUM crossing Rs 1 trillion as of 15 June 2025.
The scheme follows a value investment philosophy, investing in quality businesses with sustainable moats and reasonable valuations.
It has a diversified portfolio of domestic and selective foreign stocks with emphasis on long-term capital appreciation and reduction of the risk of loss.
As per the recent portfolio update, it holds international stocks such as Alphabet, Meta Platforms, and Amazon along with with Indian blue chips HDFC Bank (8.10%), Bajaj Holdings & Investment (6.86%) and Coal India (5.95%).
On a sectoral basis, it is overweight financial services (38.8%), technology (9.9%), and autos & ancillaries (8.2%).
Its global allocation is the differentiating factor, providing diversification outside India.
The fund has returned higher long-term gains consistently. It has provided a 10-year CAGR of 18.6%. A disciplined monthly SIP of Rs 10,000 for the last 10 years would have ended up at around Rs 6.57 lakhs on an investment of Rs 1.2 lakhs.
#2 JM Flexi Cap Fund
It was launched in September 2008, and JM Flexi Cap Fund has consistently made a name for itself through nimble stock picking and dynamic market positioning.
With an AUM of Rs 59.17 bn as of June 2025, the fund has seen growing investor trust in its long-term investing style.
The portfolio is reasonably diversified with 55 stocks, and the top 10 holding accounting for 37.9% of overall assets.
Top investments include ICICI Bank (5.13%), Larsen & Toubro (5.12%), and HDFC Bank (4.3%). It maintains a good presence in high conviction mid-cap stocks.
The fund astutely adjusts exposure across industries such as BFSI (24.2%), technology (10.2%), and FMCG (8.9%) according to macro trends and value picks.
While the majority of peers have a significant bias towards large-cap allocation, the fund has an optimal mix of large, mid, and small caps, which enables it to take advantage of market cycles.
#3 HDFC Flexi Cap Fund
HDFC Flexi Cap Fund is one of the most seasoned and renowned funds in India’s equity mutual fund sector. With an AUM of over Rs 757.8 bn as of mid-2025, the fund is still a core holding among most long-term investors.
It adopts a loose investment approach, spreading out between large-cap, mid-cap, and small-cap, with natural quality large-cap bias for stability, supplementing with selective addition of mid and small caps for growth.
As per latest portfolio, its major holdings include ICICI Bank (9.3%), HDFC Bank (9.2%), and Axis Bank (8.18%), reflecting the fund’s focus on structurally solid companies with steady earnings and seasoned management.
Although positioned conservatively overall, the fund actively makes sectoral weightings as market trends shift. The 3 biggest sectors in the fund are banking (35.1%), automobile & ancillaries (13.8%), healthcare (8.8%).
HDFC Flexi Cap Fund stands apart with its consistent, proven strategy and prudent portfolio management. Even if it is not taking a high-risk shot aggressively, its focus on quality and dependability has made it a consistent wealth-building tool for long-term investors.
#4 Motilal Oswal Flexi Cap Fund
The Motilal Oswal Flexi Cap Fund, which was launched in April 2014, follows the philosophy of concentrated investing on the AMC’s intrinsic philosophy: ‘Buy Right, Sit Tight’.
Managing an asset under management of more than Rs 130.23 bn as of May 2025, the scheme believes in long-term wealth generation by investing in a concentrated universe of quality businesses with strong earnings growth prospects and sustainable competitive moats.
Some of the biggest holdings as of the latest portfolio data are firms such as Coforge (10.7%), Persistent Systems (9.5%), and Polycab India (8.9%), among others.
The portfolio is skewed towards large-cap and some mid-cap stocks with very little churn to withstand entire business cycles. The major sector exposures are IT (20.2%), consumer discretionary (9.2%), and electricals (8.9%), all in sync with India’s long-term drivers of growth.
In the past 10 years, it has registered a CAGR of 15.9%. If one has been disciplined enough to invest Rs 10,000 every month in this timeframe, then that investment would have grown to about Rs 4.66 lakhs based on a total investment of Rs 1.2 lakhs.
Motilal Oswal Flexi Cap Fund is perhaps most famous for its concentrated growth approach, frequently taking significant holdings in handfuls of well-researched stocks. That implies higher short-term volatility, but also the potential for high returns over the long term.
#5 Franklin India Flexi Cap Fund
One of the country’s oldest equity funds, Franklin India Flexi Cap Fund debuted in September 1994.
With a legacy of more than 30 years, the fund has established itself by going through different market cycles with a disciplined research-driven investment strategy.
It has assets under management of about Rs 186.79 bn as on May 2025, which demonstrate consistent investor confidence.
The fund has a multi-cap, bottom-up stock selection philosophy, and its portfolio is diversified in nature with a core focus on fundamentally healthy, growth-oriented business.
Large holdings currently in the portfolio include HDFC Bank (8.8%), ICICI Bank (8.4%) and Bharti Airtel (4.2%), with high exposure to financials (25.3%), IT (9.6%), and healthcare (7.3%).
Over the last 10 years, the fund has delivered an annualized return (CAGR) of around 15.77%. Franklin India Flexi Cap Fund may not chase short-term trends, but its focus on quality, valuation, and consistency has helped it deliver steady long-term returns.
The fund offers a reliable path to gradual wealth creation via disciplined fund management, and a measured approach to equity investing.
The securities quoted are for illustration only and are not recommendatory.
Rolling Returns in %. Direct Plan – Growth option considered
(Source: ACE MF)
Conclusion
As Indian markets move ahead in 2025, the decade long performance of Flexi Cap funds exhibit the strength of versatility and active management.
Flexi Cap funds have proved to be strong investments that can overcome changing market conditions.
Instead of investing in an ongoing trend or confining oneself to one industry, Flexi Cap funds enable investors to invest in India’s growth story across a complete canvas — from seasoned blue-chips to rising champions.
Though past returns may not assure future returns, prudent Flexi Cap schemes can create wealth through changing market situations.
Investment choices depending on your risk tolerance and investment objective are central to effective wealth building.
Happy Investing.
#Table Note: Data as of June 16, 2025.
“Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.”
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