Flexicap funds: Freedom to shift across market caps helps mitigate risks

Flexicap funds suit investors who prefer to delegate market-cap allocation decisions to a professional

Flexicap funds witnessed net inflows of ₹ 5,733 crore in June 2025, a 49 per cent increase over May, according to data from the Association of Mutual Funds in India (Amfi). The surge reflects growing investor preference for agile funds that can handle volatility.

 

Rising investor interest 

Recent turbulence in mid- and small-cap segments has prompted a shift towards flexicap funds. “Flexicap funds have gained traction in 2025 due to their ability to dynamically allocate across large-, mid-, and small-cap stocks, offering adaptability in volatile markets,” says Trideep Bhattacharya, chief investment officer – equities, Edelweiss Mutual Fund.

 

Mid- and small-cap