These flexi cap mutual funds have given up to 34% returns in 5 years: Check top performer

Flexi-cap mutual funds have delivered decent long-term returns, with the best-performing scheme generating a 5-year return of 33.54%, according to ICRA Analytics. The rising demand for diversification and flexible asset allocation has pushed investor interest sharply higher in this category.

As a result, net assets under management (AUM) of flexi-cap funds grew over 175% to ₹4.71 lakh crore in May 2025 from ₹1.71 lakh crore in May 2021.

Inflows into these funds also surged by nearly 240%, reaching ₹3,841.32 crore in May 2025, compared to ₹1,130.48 crore in May 2021.

The category posted average 5-year returns of 23.40%, ICRA Analytics said.

“The flexible allocation across large-, mid-, and small-cap stocks allows fund managers to adapt to market conditions, making them attractive during uncertain times,” said Ashwini Kumar, Senior Vice President and Head – Market Data, ICRA Analytics. “High historical returns are another major driver for investors to select this fund over others.”

Unlike multi-cap funds, flexi-cap funds can dynamically shift allocations across market caps, helping generate alpha and manage risk.

Top-performing flexi-cap funds

Scheme Name	1-Year (%)	3-Year (%)	5-Year (%)
Quant Flexi Cap Fund	-4.28	20.76	33.54
HDFC Flexicap Fund	14.98	24.95	31.22
JM Flexicap Fund	1.98	25.75	28.16
Franklin India Flexi Cap	11	21.29	27.95
Parag Parikh Flexi Cap	14.7	20.95	26.81
HSBC Flexi Cap Fund	10.5	20.73	25.23
Invesco India Flexi Cap	14.84	23.93	—
Bank of India Flexi Cap	1.84	23.29	—
Motilal Oswal Flexi Cap	19.34	24.6	22.97
ICICI Prudential Flexicap	10.57	20.23	—

(Source: ICRA Analytics)

While fund performance has been impressive, experts urge caution.

“Investors may not always know the current exposure to different market caps, which can affect risk levels. If the manager misjudges market cycles, returns can suffer,” Kumar warned.

Retail participation remains resilient

Retail investors continue to support equity mutual funds amid global market uncertainties. According to AMFI data, retail investors accounted for 44.96% of the average AUM of equity-oriented schemes in May 2025, up from 44.87% in April 2025.

Systematic Investment Plan (SIP) contributions also showed robust growth. The number of outstanding SIP accounts rose 3% to 905.57 lakh, while monthly contributions increased 28% to ₹26,688 crore in May 2025. SIP AUM grew 27% over the year and 5% over the previous month.

“The industry AUM has touched ₹72.19 lakh crore in May 2025. Given the current momentum, especially from retail investors, we expect the industry to breach the ₹100 lakh crore mark in the next two to three years,” Kumar said.