Flexi-cap funds have become popular among investors over the past few years. As the name suggests, these funds invest in companies across different caps — large, mid, and small. In recent times, flexi-cap funds have delivered strong returns to investors. Particularly this year, they are leading the inflows. In the first eight months of 2025, flexi-cap funds received a total of Rs 46,800 crore in new investments, and the category’s assets under management (AUM) have now reached nearly Rs 5 trillion, according to AMFI data.
This story will analyse two top-rated flexi-cap funds and see how they have performed in short and long term. When selecting the best flexi-cap funds for review, we included only 5-star rated funds (as per ratings by Value Research and Crisil) and funds that have completed at least 5 years of operation, so that we can effectively analyse their performance over the long term. Based on this, we found only two funds – HDFC Flexi Cap Fund and Parag Parikh Flexi Cap Fund. For analysis, we have taken direct plans of both funds.
Before comparing the 1-, 5-, and 10-year returns of these two funds, let’s first look at some key details about them.
HDFC Flexi Cap Fund
HDFC Flexi Cap Fund is an open-ended mutual fund, launched on 1 January 2013. Since its launch, it has delivered a strong return of 17.07% and is benchmarked against the NIFTY 500 TRI index.
The fund is placed in the “very high” risk category, which means returns can be good in the long run but may see ups and downs in the short term.
As of August 31, 2025, it manages assets worth Rs 81,936 crore. The expense ratio of the fund is 0.70% as on September 30, 2025, which is relatively low compared to many other schemes.
HDFC Flexi Cap Fund portfolio exposure
HDFC Flexi Cap Fund’s portfolio is largely tilted towards the financial sector, with big allocations to ICICI Bank (9.21%), HDFC Bank (8.36%), Axis Bank (6.89%), SBI Life Insurance (4.41%), SBI (4.21%), and Kotak Bank (4.19%). Together, these names form the core of the fund. Outside of banking and finance, the fund also holds Maruti Suzuki (4.51%) and Hyundai Motor India (2.70%) in consumer discretionary, Cipla (4.07%) in healthcare, and HCL Technologies (2.93%) in technology. This mix shows the fund’s preference for large, stable companies across key sectors.
HDFC Flexi Cap Fund’s 1, 5 and 10-year returns
HDFC Flexi Cap Fund (Direct Plan) has delivered 6.46% return in the past 1 year, while its 5-year return stands at 29.84% and the 10-year return at 17.17%. Over the longer period, the fund has shown strong wealth creation potential, even though short-term returns like the past one year have been modest.
Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund is an open-ended equity scheme from PPFAS Mutual Fund, launched on 24 May 2013. Since its launch, the fund has generated an impressive return of 19.71%, outperforming many peers over the long term.
It is benchmarked against the NIFTY 500 TRI index and falls under the “very high” risk category, meaning investors should be prepared for market ups and downs.
As of August 31, 2025, the fund manages assets worth Rs 1,15,040 crore. The expense ratio is 0.63% as of September 30, 2025, making it cost-effective compared to several other equity funds.
Parag Parikh Flexi Cap Fund portfolio exposure
Parag Parikh Flexi Cap Fund has a well-diversified portfolio, though financial stocks take the lead. The fund’s top holdings include HDFC Bank (7.93%), Bajaj Holdings (5.90%), ICICI Bank (4.95%) and Kotak Bank (3.99%).
It also has sizeable exposure to public sector majors like Power Grid (5.89%) and Coal India (5.28%). Among consumer-focused companies, ITC (4.61%), Maruti Suzuki (3.53%) and Mahindra & Mahindra (3.43%) feature in the top list, while Bharti Airtel (3.48%) adds technology-sector presence.
Parag Parikh Flexi Cap Fund’s 1, 5 and 10-year returns
Parag Parikh Flexi Cap Fund (Direct Plan) has given a 4.32% return in the past 1 year, while its 5-year return is 22.89% and the 10-year return stands at 19.05%. Despite the relatively modest short-term performance, the fund has consistently delivered strong long-term returns.
HDFC Flexi Cap Fund Vs Parag Parikh Flexi Cap Fund: Complete returns analysis
HDFC Flexi Cap has outperformed in 5-year returns (29.84% vs 22.89%), while Parag Parikh Flexi Cap leads in 10-year returns (19.05% vs 17.17%). Over 1 year, both posted modest gains — HDFC at 6.46% and Parag Parikh at 4.32%.
Don’t judge a fund by past returns alone
Mutual fund investors must remember that past returns can give a sense of how a fund has done, but they shouldn’t be the only reason to pick one. Equity mutual funds perform based on the stocks they hold, and those stocks can go up or down depending on market conditions.
There’s no guarantee that what worked in the past will work in the future, as markets are influenced by many things — overall economy, global events, interest rates, and sector trends. It’s also important to look at a fund’s strategy, risk level, costs, and your own goals before investing.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.