Mumbai, Jan 20 India’s flexi cap mutual funds saw their assets under management (AUM) surge 148.28 per cent over the last four years as top funds provided over 20 per cent returns over the last five years, a report said on Tuesday.
The report from ICRA Analytics said that AUM of flexi cap funds touched Rs 5.52 lakh crore in December 2025, up from Rs 2.22 lakh crore in December 2021.
Net inflows into these funds have increased by nearly 316 per cent over the last four years at Rs 10,019 crore in December 2025, as against Rs 2,409 crore in 2021. Inflows have grown by 78.44 per cent since the beginning of FY26 from Rs 5,615 crore in March 2025.
Investors flocked to these funds as they could invest across large-cap, mid-cap, and small-cap stocks without rigid allocation rules, the report said.
“Fund managers of flexi cap funds have flexibility to adapt to changing market conditions and take a dynamic approach which ensures better diversification and risk management, combining the stability of large caps with the growth potential of mid and small caps,” said Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics.
Investors are drawn to these funds for their resilience during market downturns, as they typically offer better downside protection compared to pure mid- or small-cap funds, Kumar added.
Around 24 flexi cap funds currently available in the market have delivered average five-year annualised returns of around 16.08 per cent, with top performers generating annualised returns above 20 per cent over five years.
The number of flexi cap folios has doubled to 2.21 crore in December 2025, up from 1.10 crore in December 2021.
Investors expect this category to maintain double-digit annual growth, driven by increasing retail participation, robust SIP inflows, and India’s structural equity market expansion, the report said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor