Flexi Cap Mutual Funds have emerged as a big trend among investors in 2025. So far this year, investments worth about ₹70,959 crore have come in Flexi Cap Funds. According to experts, these funds provide a feeling of safety and comfort in choppy and uncertain markets.
Their biggest strength is the flexibility of the fund manager, who can move freely between large, mid and small cap stocks. This flexibility makes them a relatively safer option in an era of market leadership rotation and uneven valuations.
Short-term volatility can affect returns, so the ideal horizon is considered to be 5–7 years. Flexi Cap Funds should be viewed like core equity allocation. Under SEBI rules there is a minimum equity exposure of 65%, but there is no rigid limit on sector or market-cap. By November 2025, the AUM of this category has reached ₹ 5.45 lakh crore, which shows long-term confidence.

