Top Flexi Cap Funds in India for 2024

Last Updated on Dec 26, 2024 by Vanessa Sequeira

If you are concerned about market volatility and are unsure about which market capitalisation to bet on, flexi-cap funds can be your ally. Flexi-cap funds are relatively new to the equity funds pack. These funds can be invested in companies across market caps without any restrictions. You can invest one time or do the due diligence to choose the best flexi cap fund for SIP, as these funds are known to produce consistent returns.

In this article, we will delve deeper into understanding flexi-cap funds and their benefits, and also, by using Tickertape Mutual Fund Screener, we will explore the best flexi-cap funds in 2024.

List of the Top 10 Flexi Cap Mutual Funds  (2024)

Note: The above information is dated 18th December 2024. The parameters used to filter the list of top flexi cap mutual funds on Tickertape’s Mutual Fund Screener are:

• Category > Equity > Flexi cap funds
• Plan – Growth
• 5Y CAGR: Set high to low

🚀 Pro Tip: Use Tickertape’s Mutual Fund Screener to filter and compare funds based on performance, expense ratio, and risk. Find funds that match your goals and risk tolerance for smarter investment choices.

Overview of the Best Flexi Cap Mutual Funds

Quant Flexi Cap Fund

Quant Flexi Cap Fund, managed by Quant Money Managers Limited, focuses on a diversified approach across market capitalizations. Established in December 1995, it was approved by SEBI as an Asset Management Company in 2017. With a Sharpe Ratio of 1.10, the fund offers a balanced risk-return profile. It imposes a 1.00% exit load and requires a minimum lumpsum investment of ₹ 5,000, making it suitable for investors looking for moderate returns with controlled withdrawal restrictions. For investors seeking the best flexi cap fund for SIP, this could be an option worth exploring

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund, managed by PPFAS Asset Management Private Ltd., stands out with a Sharpe Ratio of 2.04, reflecting superior risk-adjusted returns. Established in 2012, the fund adheres to SEBI registration code MF/069/12. It has a comparatively low minimum lumpsum investment of ₹ 1,000 and imposes a 2.00% exit load, making it an attractive option for long-term investors seeking high returns with flexibility. This fund is often ranked among the top flexi cap funds for its performance and flexibility.

JM Flexicap Fund

JM Flexicap Fund, managed by JM Financial Asset Management Private Limited, has been operating since 1993-94 as a subsidiary of the JM Financial Group. It boasts a Sharpe Ratio of 1.86 and offers a 1.00% exit load with a minimum lumpsum investment of ₹ 1,000. This fund provides a balanced approach to equity investments across different market segments, appealing to both conservative and aggressive investors. For those looking to diversify their portfolio, this fund is also among the top 5 flexi cap fund choices.

ICICI Pru Retirement Fund – Pure Equity Plan

ICICI Pru Retirement Fund – Pure Equity Plan, managed by ICICI Prudential Asset Management Company Ltd., is tailored for retirement-oriented equity investments. With a Sharpe Ratio of 1.56, the fund emphasises long-term wealth creation with no exit load, and a minimum lumpsum requirement of ₹ 5,000. This makes it ideal for investors looking to build a retirement corpus with minimal withdrawal constraints. It also earns a spot in discussions around the best flexi cap funds for retirement planning.

HDFC Retirement Savings Fund – Equity Plan

HDFC Retirement Savings Fund – Equity Plan, managed by HDFC Asset Management Company, focuses on wealth accumulation for retirement through equity investments. With a Sharpe Ratio of 1.55 and no exit load, it provides flexibility for investors. The minimum lumpsum investment is ₹ 100, making it accessible for a wider range of investors planning for long-term financial security. As one of the top flexi cap funds, it combines affordability with growth potential.

What Are Flexi Cap Funds?

Flexi-cap funds were introduced by the Securities and Exchange Board of India (SEBI) on 8th November 2020. These mutual funds are open-ended, dynamic investments that allocate at least 65% to equity and equity-related instruments across market capitalisations.

Fund managers of flexi-cap funds can invest in companies of all sizes without restrictions on specific segments. For example, large-cap funds can only invest up to 20% in mid- and small-cap companies, whereas flexi-cap funds have no such limits. This difference highlights why many investors question, is flexi cap fund good compared to other fund categories.

Since fund managers can target attractive segments, flexi-cap funds often provide better returns. They are ideal for long-term wealth creation with a 5-7 year horizon. Investors frequently include these funds in their flexi cap fund list or consider them when exploring the top 5 flexi cap mutual funds.

Features of Flexi Cap Funds

• Diverse Market Capitalisation: Flexi-cap funds invest across large, mid, and small-cap stocks, creating a well-balanced portfolio. This diversification reduces risk while seizing growth opportunities, making them popular in top 10 flexi cap fund rankings.
• Dynamic Allocation: Flexi-cap funds dynamically adjust portfolios based on market conditions, improving returns by shifting toward favorable opportunities. This flexibility helps identify which flexi cap fund is best for specific goals.
• Potential For Enhanced Returns: With no constraints on market segments, flexi-cap funds capitalize on opportunities across the market spectrum. This broad approach often secures a spot among the top 5 flexi cap mutual funds.
• Effective Risk Management: By diversifying across sectors and market caps, flexi-cap funds mitigate market volatility and sector-specific risks. This stability answers the question, is flexi cap fund good for risk-conscious investors.
• Expert Fund Management: Experienced fund managers analyze market trends and allocate assets strategically. Their expertise ensures funds rank high on any flexi cap fund list of consistent performers.
• Suitability For Long-Term Investment Horizons: Flexi-cap funds are designed for long-term investors, with the potential to compound returns over time. Their adaptability to market changes makes them ideal for wealth building.
• Liquidity: Flexi-cap funds provide liquidity, allowing investors to buy or sell units regularly. This flexibility ensures access to funds when needed without delays.

How to Invest in Flexi Cap Funds Using Tickertape Mutual Fund Screener

Tickertape is a powerful tool for screening and comparing various mutual funds. Here’s how you can use it to invest in Flexi Cap Funds:

1. Visit Tickertape Website: Go to the Tickertape website and navigate to the Mutual Fund Screener section.
2. Set Filters: Apply filters for Flexi Cap Funds to narrow down your options. You can choose from over 50 filters to create a custom filter tailored to your preferences.
3. Compare Funds: Use the comparison feature to evaluate different funds side by side. This feature allows you to see how each fund stacks up against others in terms of performance, risk, and other key metrics.
4. Detailed Analysis: Click on individual funds to see a detailed analysis, including historical performance, portfolio composition, and fund manager information. This detailed view can help you understand the strengths and weaknesses of each fund.
5. Make Informed Decision: Based on the analysis, select the fund that aligns with your investment goals and risk tolerance. Making an informed decision is crucial to achieving your financial objectives.

Investing in Flexi Cap Funds can be a strategic way to achieve a balanced and diversified investment portfolio. By using tools like the Tickertape Mutual Fund Screener, you can make informed decisions and choose the best funds that align with your financial goals. Always remember to assess your risk tolerance and investment horizon before making any investment decisions.

Factors to Consider Before Investing in Flexi Cap Funds

Before investing in flexi funds, it’s crucial to evaluate these key factors:

• Investment Objective: Determine whether a flexi cap mutual fund fits your financial goals, such as wealth creation, retirement planning, or achieving a specific milestone. These funds provide growth opportunities through a diversified portfolio of large, mid, and small-cap stocks. Aligning the fund’s objective with your goals is essential when choosing the best flexi cap mutual funds.
• Risk Tolerance: Flexi funds involve exposure to different market segments, including the volatile small-cap sector. Assess your risk tolerance to decide if you can handle market fluctuations. This step is vital to ensure your investments align with your financial well-being.
• Fund Performance History: Reviewing the past performance of a flexi cap mutual fund can offer insights into its track record during different market conditions. Look for consistent long-term performance to evaluate how well the fund manager navigates volatility. This analysis is helpful when comparing funds in the flexi cap mutual fund list.
• Fund Management Expertise: The expertise of the fund manager plays a significant role in the performance of flexi funds. Research the manager’s experience, strategy, and adaptability. A skilled manager with a proven track record enhances the chances of strong returns, making it easier to identify the best flexicap mutual fund.
• Expense Ratio and Fees: Evaluate the costs of investing in flexi cap funds, including the expense ratio and additional fees. Higher fees can reduce your returns, so compare expenses across funds. Ensure that the fees are justified by the potential returns, especially when investing in the best flexi cap fund India offers.

4 Benefits of Investing in Flexi Cap Funds

• Portfolio Diversification: Flexi cap funds invest across various industries, helping reduce risks associated with a single sector. Diversification ensures greater stability during market volatility, making them a staple in any flexi cap mutual fund list.
• Managed by Seasoned Fund Managers: Experienced fund managers dynamically adjust portfolios to minimise exposure to risky segments. This expertise ensures your investment is protected during market corrections, making flexi funds a reliable choice for long-term stability.
• Investment Across Market Capitalisations: Unlike large-cap funds, flexi cap funds can invest freely in large, mid, and small-cap companies. This flexibility allows fund managers to tap into high-performing market segments, often earning these funds a place among the best flexi cap mutual funds.
• Exposure to Foreign Markets: Flexi cap funds also invest in foreign markets, offering global diversification. This exposure reduces reliance on domestic markets and unlocks additional growth opportunities, making them a strong contender for the best flexicap mutual fund in your portfolio.

Now that you understand the benefits and considerations, explore a flexi cap mutual fund list to find the best flexi cap fund India has to offer. Research thoroughly before investing to ensure the fund aligns with your goals.

What Are the Risks of Investing in Flexi-Cap Funds?

While investing in the best flexi cap funds can offer significant advantages, it is equally important to understand the associated risks. Below are some key risks to consider when evaluating the top flexi cap funds for your portfolio:

• Market Risk: Flexi-cap funds are subject to market risk because they invest in equity and equity-related instruments. Market risk refers to the possibility of losses due to factors affecting overall market performance, such as economic downturns, geopolitical events, or changes in sentiment. 
• Volatility Risk: Since flexi-cap funds invest across large-cap, mid-cap, and small-cap companies, they face volatility risk. These segments tend to be more volatile compared to large-cap stocks, impacting the NAV of even the top 5 flexi cap fund options. While diversification is a key advantage of the best flexi cap funds, it does not entirely eliminate the impact of market volatility.
• Management Risk: The success of flexi-cap funds depends heavily on fund managers’ decisions. Poor investment choices or failure to adapt to market changes can negatively affect performance, even among the top flexi cap funds. Management risk is a key factor to consider when selecting the best flexi cap funds for your portfolio.
• Concentration Risk: Despite the flexibility to invest across sectors and market caps, flexi-cap funds may still face concentration risk. Over-allocating to a specific sector or a few stocks could lead to significant losses if those sectors or stocks underperform. Even the top 5 flexi cap fund options must balance their portfolios to mitigate this risk effectively.
• Foreign Investment Risk: Flexi-cap funds investing in foreign markets face risks such as currency fluctuations, geopolitical instability, and differing market regulations. This foreign investment risk can affect returns, even in the best flexi cap funds that include international exposure.
• Liquidity Risk: Liquidity risk arises when flexi-cap funds, especially those investing in mid-cap and small-cap stocks, face challenges in selling holdings at a fair price due to a lack of market buyers. This risk is more evident during market stress, potentially delaying redemption in some of the top flexi cap funds.

How Are Flexi-Cap Funds Taxed?

When you invest in flexi-cap funds, it is crucial to understand how they are taxed. Flexi-cap funds are treated like other equity mutual funds under Indian tax laws.

The Union Budget 2024 has introduced significant changes to the taxation of equity mutual funds, simplifying the tax structure while altering rates and benefits. Here is a detailed breakdown of the new tax rules:

• Tax-Free Limit: Gains up to Rs. 1.25 lakh in a financial year remain tax-free. This limit has been increased from the previous threshold of Rs. 1 lakh.
• Tax Rate: Any gains above Rs. 1.25 lakh are taxed at a flat rate of 12.5%. It was previously taxed at 10%.
• Indexation: It’s important to note that the benefit of indexation, which previously allowed investors to adjust the purchase price of their assets for inflation, has been removed for all asset classes, including equity mutual funds.

Applicability of Equity Funds Tax Rules

It’s important to note that these tax rules apply to flexi-cap funds because they are categorised as equity funds. According to the regulations, a mutual fund scheme must invest at least 65% of its assets in equity or equity-related instruments to be classified as an equity fund. Flexi-cap funds meet this requirement by investing in a mix of large-cap, mid-cap, and small-cap stocks, providing the flexibility to adjust the portfolio according to market conditions.

Who Should Consider Investing in Flexi Cap Funds?

• Moderate Risk Tolerance: If you have a moderate risk appetite, flexi cap funds may be suitable for you. These funds aim to balance risk and reward by investing across various market caps.
• Long-Term Investment Horizon: Investors looking for long-term growth might find flexi cap funds appealing. The ability to invest in high-growth mid and small-cap stocks, along with the stability of large-cap stocks, can be beneficial over the long term.
• Seeking Diversification: If you want to diversify your portfolio, flexi cap funds might be a good choice. These funds invest in a variety of sectors and market caps, which may help spread risk.
• Active Management Preference: If you prefer actively managed funds where the fund manager makes dynamic investment decisions, flexi cap funds can be a good fit. The fund manager’s expertise in shifting allocations based on market conditions can potentially enhance returns.

To Wrap Up

Flexi-cap funds can be an excellent option for investors who seek consistent returns without any restrictions on market capitalisation. And if you’re considering investing in flexi cap funds, selecting the best plan for your SIP investment is crucial. Therefore, we highly recommend that you do your due diligence before choosing the best flexi cap fund for SIP.

Choose the scheme that aligns with your risk tolerance and investment goals. Then, whether you want to go for a one-time investment or take the SIP route, either way, you can ensure that your investment portfolio is well-diversified and optimised for long-term wealth creation.

FAQs about the best flexi cap mutual funds

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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