Flexi-cap funds are mutual fund schemes that aim to invest in stocks of companies across market capitalisation – large, mid, and small. They are open-ended and dynamic mutual funds. The main objective of these funds is to maximise the long-term gains of investors through portfolio diversification risk mitigation. Want to invest in these funds? Check out this list of 20 best flexi-cap funds 2023 to invest in India, features, taxation and benefits. Read on!
Here is the list of the 20 best flexi cap funds 2023:
|Navi Flexi Cap Fund – Direct Plan – Growth||NAV – ₹15.7|
0AUM – ₹202.55Cr
Expense Ratio – 2.34%
|Quant Flexi Cap Fund Direct Growth||NAV – ₹63.90|
AUM – ₹1044.8 Cr
Expense Ratio – 0.54%
|Parag Parikh Flexi Cap Fund Direct Growth||NAV – ₹53.40|
AUM – ₹29953.06 Cr
Expense Ratio – 0.75%
|PGIM India Flexi Cap Fund Direct Plan Growth||NAV – ₹26.64|
AUM – ₹5199.03 Cr
Expense Ratio – 1.95%
|Canara Robeco Flexi Cap Fund – Direct Plan – Growth||NAV – ₹217.27|
AUM – ₹8630.80Cr
Expense Ratio – 1.86%
|Axis Flexi Cap Fund – Direct Plan – Growth||NAV – ₹16.86|
AUM – ₹10077.2Cr
Expense Ratio – 1.92%
|JM Flexi Cap Fund Direct Plan Growth||NAV – ₹59.85|
AUM – ₹255.58Cr
Expense Ratio – 1.62%
|Union Flexi Cap Fund Direct Growth||NAV – ₹35.09|
AUM – ₹1,337.44 Cr
Expense Ratio – 1.22%
|HDFC Flexi Cap Fund Direct Plan Growth||NAV – ₹1,211.43|
AUM – ₹3167.25Cr
Expense Ratio – 1.%
|UTI Flexi Cap Fund Direct Growth||NAV – ₹233.35|
AUM – ₹23944.62Cr
Expense Ratio – 0.88%
|IDBI Flexi Cap Fund Direct Growth||NAV – ₹37.7|
AUM – ₹351.06 Cr
Expense Ratio – 1.17%
|Franklin India Flexi Cap Fund Direct Growth||NAV – ₹1,059.76|
AUM – ₹9989.33 Cr
Expense Ratio – 1.1%
|Edelweiss Flexi Cap Fund Direct Growth||NAV – ₹25.46|
AUM – ₹1,056.03 CrE
xpense Ratio – 0.56%
|Kotak Flexi Cap Fund Direct Growth||NAV – ₹58.55|
AUM – ₹35775.03 Cr
Expense Ratio – 0.68%
|DSP Flexi Cap Fund Direct Plan Growth||NAV – ₹67.91|
AUM – ₹7725.75 Cr
Expense Ratio – 0.76%
|SBI Flexi Cap Fund – Direct Plan – Growth||NAV – ₹73.98|
AUM – ₹15602.59Cr
Expense Ratio – 1.7%
|Aditya Birla Sun Life Flexi Cap Fund – Direct Plan – Growth||NAV – ₹1092.62|
AUM – ₹15,449.93 Cr
Expense Ratio – 1.75%
|HSBC Flexi Cap Fund Direct Growth||NAV – ₹140.47|
AUM – ₹ 3097.27Cr
Expense Ratio – 1.23%
|IDFC Flexi Cap Fund Direct Growth||NAV – ₹140.59|
AUM – ₹5,532.63 Cr
Expense Ratio – 1.2%
|LIC MF Flexi Cap Fund – Direct Plan – Growth||NAV – ₹63.90|
AUM – ₹383.19 Cr
Expense Ratio – 2.55%
Navi Flexi-cap Fund is considered by many as one of the best flexi cap mutual funds in India due to its low expense ratio. It currently invests 94.9% of its corpus in domestic equities across large-, mid- and small-cap stocks. 0.9% is invested in debt instruments, while the rest is held as cash and cash receivables. In terms of sectoral allocation under equities, the maximum weightage has been given to financial services while the lowest is allocated to capital goods. This fund aims to generate long-term capital appreciation by investing in companies across the market cap.
Often considered to be one of the best flexi-cap mutual funds in India, Quant Flexi Cap Fund has 99% of its corpus invested in domestic equities. The financial sector gets almost 26% of the total investment amount while consumer stables get 15% of the investment. 3% is currently held as cash.
Parag Parikh Flexi Cap Fund is considered to be one of the best flexi-cap mutual funds in India. It has 74.01% investments in Indian equities of which 8.13% is in small-cap stocks, 3.63% is in mid-cap stocks and 60.85% is in large-cap stocks. The investment objective of this fund is to generate long-term capital appreciation. Most of its money is invested in financial, services, consumer staples, technology and automobile sectors.
PGIM India Flexi Cap Fund has 91.5% investment in domestic equities across large, mid and small-cap stocks. The fund currently invests 6.7% of its corpus in debt instruments and the rest is held as cash. The fund has exposure to the financial, automobile, technology, capital goods, and consumer staples sectors.
Canara Robeco Flexi Cap Fund has 96.8% investment in equities across market capitalisations. It is a medium-sized fund in its category and aims to generate long-term capital appreciation. A majority of the money is invested in the financial, technology, healthcare, energy, and capital goods sectors.
Axis Flexi Cap Fund has 86.3% of its total corpus invested in equities, of which 37.9% is allocated to the financial sector, 12.9% in technology, and 10% in chemicals to name a few. The fund has about 13.9% of the corpus invested in a variety of debt instruments. This fund seeks to generate capital appreciation in the long term.
JM Flexi Cap Fund has 95.6% investment in equities. In terms of sectoral allocation under equities, 26.3% has been allocated to financial services, 11.5% in technology, and 6.5% in consumer staples. The fund also invests in capital goods, automobile, construction, and energy. This open-ended diversified equity fund seeks to gain capital appreciation by investing primarily in equity and equity-related securities across market capitalisation.
Union Flexi Cap Fund Direct Growth currently has 96.5% invested in domestic equities across small, mid and large-cap stocks. While the fund holds 3.4% as cash, only 0.1% is invested in debt instruments. Some important details are as follows:
HDFC Flexi Cap Fund has 93.2% investment in Indian equities. It is an open-ended dynamic equity scheme that seeks to generate capital appreciation by investing in equity and equity-related instruments. Currently, it holds 6.8% of its corpus in cash.
UTI Flexi Cap Fund is a flexi-cap mutual fund scheme that was launched on 18th May, 1992. It has 95.7% investment in domestic equities, 0.2% in debt, and the rest held as cash. Going by equity sector allocation, financial services take the largest piece of the pie, with technology coming in at the third position. Some important fund details are:
IDBI Flexi Cap Fund is an open-ended dynamic equity scheme that invests in stocks across market caps. The fund currently invests 99.5% in domestic equities. The fund was launched on 28th March, 2014 and is currently managed by Alok Ranjan.
Franklin India Flexi Cap Fund has 96.8% investment in equities. It has delivered an annualised return of 21.3% over 3 years. It seeks to generate long-term returns by investing in equity and equity-related instruments.
Edelweiss Flexi Cap Fund is an open-ended dynamic equity scheme that seeks to generate capital appreciation by investing in small-, mid-, and large-cap companies. This fund currently invests about 97.5% of its corpus in equities. A majority of this fund’s money is invested in financial, construction, energy, technology, and capital goods sectors.
Kotak Flexi Cap Fund has 98.6% investment in domestic equities; 63.09% of which is in large-cap stocks, 26.86% in mid-cap stocks, and 2.62% in small-cap stocks. In terms of sectoral allocations, the financial sector gets the maximum weightage while metals & mining gets the least.
DSP Flexi Cap Fund aims to own quality businesses that have strong business models, a good growth potential and are led by trustworthy management. The fund was launched on 1st January, 2013 and it currently has 98.3% investment in domestic equities across market capitalisation. The fund has exposure to sectors, such as financial, capital goods, materials, technology, and automobile.
SBI Flexi Cap Fund seeks to provide investors with long-term growth in capital by investing in a diversified basket of equity stocks across market capitalisation. It follows a bottom-up approach to stock picking and chooses companies across sectors and styles. This fund currently invests 97.1% in domestic equities, across large, mid, and small-cap stocks.
Aditya Birla Sun Life Flexi Cap Fund is an open-ended dynamic equity scheme that has 98.6% investment in domestic equities across market capitalisation. It gives you exposure across sectors, such as financial, technology, healthcare, and communication among others.
HSBC Flexi Cap Fund is an open ended dynamic equity scheme that invests in stocks across large cap, mid cap, small cap companies. It currently has 94.5% investment in equities. It gives you exposure to sectors, such as financial, consumer staples, construction, healthcare and technology among others.
IDFC Flexi Cap Fund currently has 95.4% invested in equities and 4.6% is held as cash. This scheme aims to offer long-term capital appreciation by investing in a diversified portfolio across sectors and market capitalisations.
LIC MF Flexi Cap Fund currently invests 96.1% of its corpus in stocks across market caps. This fund seeks to generate long-term capital appreciation by investing in diverse sectors, such as financial, capital goods, automobile, and consumer staples.
*Data correct as of 31st March, 2023
Disclaimer: Mutual fund investments are subject to market risks, read all scheme-related documents carefully.
Flexi-cap funds are open-ended mutual funds that invest a minimum of 65% of their assets in equity and related instruments. These mutual funds invest in large-cap, mid-cap and small-cap stocks. However, fund managers are free to change the asset allocation without any restrictions.
Flexi-cap funds vary the exposure in different stocks as per the current economic conditions to balance the risk and reward aspect of the fund. While exposure in large-cap stocks protects the investment in volatile market conditions, mid-cap and small-cap stocks provide the opportunity for growth.
Based on their study of the market, fund managers of these funds transfer the investments to minimise losses and maximise gains.
For example, Navi Flexi-cap Fund has 95.54% investments in domestic equities across large, mid and small-cap stocks. Meaning, Navi Flexi-cap fund invests in the stocks of select few companies across the market cap without limiting it to just large, mid or small-cap companies. It is usually done to reduce risks and volatility while helping investors get considerable returns in the long-term.
You need to know the purpose of your investment aligns with your object and financials. Flexi-cap funds are the most beneficial in the long term, and therefore, it is a suitable option if you have a long-term investment horizon.
Since the returns of these funds depend on the market scenario and the performance of the companies, there’s considerable risk associated with investments in flexi cap funds. Thus, you need to assess your risk appetite before investing even in the flexi cap funds.
The expense ratio is a yearly fee charged by AMCs to cover administrative expenses and other costs related to the maintenance of the fund. Usually, mutual fund schemes with a higher corpus offer a lower expense ratio. It is advisable to select funds with a lower expense ratio to maximise your returns on investment.
It is of the utmost importance that you check a fund’s past performance and track record to get a comprehensive idea about its ability to provide returns. This helps you assess the ability of the funds to perform in different market conditions.
This measures the fund manager’s ability to generate profits during times when the benchmark (Sensex or Nifty) registers a profit. The closer this value is to 1.0, the more is the fund manager’s skills to make profits in a bull market and vice versa.
This refers to the risk-adjusted returns of a specific mutual fund. A higher value indicates the better performance of a fund compared to its peers.
These are the returns made by a fund compared to its risk over a period of time. For two funds with the same returns, the one with lower risks will have higher risk-adjusted returns.
It is always advisable to look at a fund’s benchmark to compare its performance. If a fund is doing well, it will constantly outperform its benchmark.
Check the returns of a mutual fund over time to know the quality of stocks. You can also look at the fund’s industry leadership position and historical performance to evaluate it.
Here’s how investors can invest in the best flexi-cap funds:
Read and research a few best flexi-cap funds you want to invest in. Check the 5-year and 3-year return, expense ratio, invested sectors, etc.
Check minimum and maximum SIP or lump sum investment amount of the selected fund.
Completing KYC is mandatory to start investing in any mutual fund scheme. Enter your Name, mobile number, PAN or Aadhaar card details. Wait for KYC verification approval.
Once the fund house confirms your KYC verification, you can start investing with the minimum SIP or lump sum amount. Select the date for monthly SIP auto-debit.
The fund managers have the liberty to invest across market caps – small, medium and large, whichever offers better return potential. Of course, the allocations are done on the basis of several parameters to generate better returns.
Fund managers can pick stocks from any sector. This gives them the opportunity to diversify the investments and generate maximum returns, safeguarding the portfolio value from market volatility at the same time.
Fund managers are always on the lookout for opportunities. They assess the market conditions, company financials along with their growth prospects. After taking these factors into consideration, fund managers allocate their investment corpus accordingly to deliver risk-adjusted returns.
As an asset class, equity has the ability to beat market inflation and maximise wealth in the long run. These funds can help investors to achieve their long term financial goals.
Another reason to invest in the flexi cap funds is due to the lower risk factor in comparison to other types of equity funds. Fund managers can always capture the best prospects in the market across different sectors, unlike in the case of pure large-cap or mid-cap funds.
As flexi-cap funds invest in different market cap segments, they strike a balance between risk and volatility. These funds are known to deliver steady returns even during bear market phases due to their well-diversified portfolio.
If the fund manager notices that a particular asset/sector is not performing well over some time, he can change the allocation. Such flexibility allows investors to minimise risks and volatility while getting steady returns.
These investments are ideal for investors with moderate risk appetites who are also looking for steady risk-adjusted returns.
Due to their diversified portfolio, flexi-cap funds are ideal for first-time investors in equities. As these investors do not know much about balancing their risks, these funds are an easy investment option.
Flexi-cap funds are ideal for investors with a long-term investment horizon of five or more yea₹ Its ability to change the allocations regardless of the market cap makes it one of the best performers in the long run. Moreover, the long-term horizon acts as a cushion against volatility.
These funds are ideal for investors who want to invest in small-cap and mid-cap funds but do not have a high-risk appetite.
Investors who cannot make a decision between large-cap, mid-cap and small-cap funds can invest in flexi-cap funds.
Flexi-cap funds are equity mutual funds and here’s how they are taxed:
Short-term Capital Gains (STCG) refer to returns from investments held for less than 12 months. These gains are taxed at a flat 15% rate irrespective of your income tax slab.
All gains made from investments held for a period of over 12 months come under Long-term Capital Gains. LTCG of up to ₹1 lakh is exempted. That said, long-term capital gains of more than ₹1 lakh attract 10% rate without indexation benefit.
Flexi-cap funds could help you maximise your returns potential while mitigating your risks in the long run. Therefore, it is ideal for investors who have a long-term investment horizon. To meet your financial goals, you could consider investing in any one from the list of the top flexi cap funds for 2023.
However, if you’re looking for other low-cost mutual fund options for investing, you could consider heading over to the Navi Mutual Fund and start your investment journey with just ₹10! So, what are you waiting for? Download the Navi app today and get started!
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Since the performance of the flexi cap funds depends on market conditions, there are certain risks involved. However, these pose a lesser threat than direct equity investments.
Market capitalisation refers to the total market value of the company. One can compute it by multiplying the total number of outstanding shares of the company by the market price of each share.
No, flexi cap funds do not have any lock-in period. You can sell your units at your convenience.
As per SEBI guidelines, flexi cap funds need to invest at least 65% in equity and equity-related instruments. There is no restriction in terms of the allocation across small-cap, mid-cap or large-cap stocks. That said, it is mandatory for multi cap funds to invest a minimum of 25% of their fund corpus in each of small cap, mid cap and large cap categories.
No, individuals who invest in flexi cap funds will not be eligible for tax deductions under Section 80C of the Income-tax Act, 1961.
A flexi-cap fund is a mutual fund scheme that invests in stocks of large, mid and small-cap companies. These funds are open-ended mutual funds and seek to generate long-term capital appreciation. One of the best flexi-cap mutual funds is Navi Flexi-cap Fund with its low expense ratio and minimum SIP amount of just Rs.10! Download the Navi app to invest now!
Here’s the list of 5 best flexi-cap funds in India:
1. Navi Flexi Cap Fund – Direct Plan – Growth
2. Quant Flexi Cap Fund – Direct Plan – Growth
3. Parag Parikh Flexi Cap Fund – Direct Plan – Growth
4. PGIM India Flexi Cap Fund – Direct Plan – Growth
5. Canara Robeco Flexi Cap Fund – Direct Plan – Growth
Mutual funds are subject to market risks. Therefore, while flexi-cap funds tend to be considerably safer compared to small-cap funds, they are not completely protected from risks. You must invest in flexi-cap funds after carefully reading the scheme-related documents.
Flexi-cap funds are considered good long-term investments as they invest in stocks of companies across the market cap. Expert fund managers select companies and sectors for these flexi-cap funds to help investors get potentially good returns over the long term.
The only difference between an SIP and flexi SIP is that in flexi SIP you can change the SIP (Systematic Investment Plan) amount at any given time. Some investors find flexi SIP to be beneficial, while others tend to choose regular SIP.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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