Flexicap, hybrid fund surge expands the size of India's ₹1-trillion MF club

A sharp rise in flexicap and hybrid fund inflows has helped multiple schemes cross the Rs 1-trillion AUM mark since May 2025, with several more on the verge of joining the club

The number of “mega” mutual fund (MF) schemes is rising, with several prominent offerings in popular categories witnessing a sharp surge in traction. Since May 2025, three schemes have crossed the Rs 1-trillion assets under management (AUM) milestone.

 

Two of these schemes — Parag Parikh Flexicap Fund and HDFC Flexicap Fund — have been among the fastest-growing in recent months. Since the start of 2025, their AUMs have risen over 50 per cent (as of 12 February). In comparison, the flexicap category expanded 28 per cent during the same period. 

Flexicap and hybrid funds dominate the list of the largest schemes, aided by the presence of some of the oldest offerings in the industry. The renewed traction for these categories amid heightened equity market volatility has further accelerated AUM growth for leading schemes. 

HDFC Balanced Advantage Fund is the third scheme to have crossed the Rs 1-trillion AUM mark. HDFC Midcap Fund, SBI Equity Hybrid Fund, ICICI Prudential Multi-Asset Fund, and ICICI Prudential Largecap Fund are also on the verge of joining the Rs 1-trillion club.

 

The Rs 1-trillion league expands further when passive funds are included. SBI Mutual Fund’s Nifty 50 ETF and BSE Sensex ETF also manage over Rs 1 trillion each, with the SBI Nifty 50 ETF overseeing more than Rs 2 trillion in assets.

 

The Securities and Exchange Board of India (Sebi) had proposed allowing fund houses to launch an additional scheme in categories where their AUM has crossed Rs 50,000 crore. However, the proposal is yet to see fructification.