HDFC Flexi Cap Fund: Focus on high-return sectors boosts gains further

HDFC Flexi Cap Fund delivers strong long-term returns, outperforming benchmark and peers, with rising AUM and a diversified, large-cap-heavy portfolio strategy

HDFC Flexi Cap Fund, launched in January 1995, featured in the top 30th percentile of the flexi-cap category in the Crisil Mutual Fund Ranking (CMFR) for four consecutive quarters through December 2025. The fund’s assets under management (AUM) rose to ₹96,295 crore in 2025 from ₹32,155 crore in 2022. Amit Ganatra has been managing the fund since February 2026. 

The scheme aims to deliver long-term capital appreciation by investing in equities and equity-related securities. 

Trailing returns 

The fund outperformed its benchmark (Nifty 500 TRI) across one-, two-, three-, five-, seven- and 10-year trailing periods. It also surpassed peers in the flexi-cap category (according to CMFR rankings for December 2025) over the same period. 

An investment of ₹10,000 in the fund on 26 November 1998 (benchmark inception date) would have grown to ₹22,94,327 as on March 19, 2026, translating into an annualised return of 22.01 per cent. In comparison, the same investment in the category and benchmark would have grown to ₹9,51,681 (18.14 per cent) and ₹5,54,799 (15.83 per cent), respectively. 

A monthly SIP of ₹10,000 over 10 years (total investment of ₹12 lakh) would have grown to ₹27.91 lakh, delivering an annualised return of 16.19 per cent. The same investment in the benchmark would have risen to ₹23.33 lakh (12.83 per cent) as on March 19, 2026. The fund has outperformed the benchmark across three-, five-, seven- and 10-year SIP horizons.

 

Portfolio analysis

 

The fund’s exposure to large-cap stocks has declined over the past three years.

 

On average, the allocation to large-cap stocks stood at 76.57 per cent, compared with 4.18 per cent and 7.23 per cent in mid- and small-cap stocks, respectively. In comparison, the category average allocation was 60.39 per cent to large caps, 18.37 per cent to mid-caps and 15.29 per cent to small caps. The fund remains more skewed towards large-cap stocks than its peers.

 

The portfolio is diversified across 21 sectors. Financial services accounted for the highest average allocation at 37.93 per cent, followed by health care (10.47 per cent), automobile and auto components (9.02 per cent), information technology (8.43 per cent) and telecommunications (4.08 per cent).

 

Overweight positions relative to the category in select sectors — including automobile and auto components (27.95 per cent), telecommunications (23.57 per cent) and healthcare (23.09 per cent) — contributed to the fund’s outperformance over the past three years.

 

During the review period, the fund invested in 89 stocks, with 18 held consistently. ICICI Bank, Hindustan Aeronautics, Bharti Airtel, and State Bank of India were among the key contributors.