Flexi-cap funds have once again grabbed investor attention in 2026. The category has remained the top choice for investors for several months. Inflows into flexi-cap funds have further strengthened through early 2026, according to AMFI data. Despite an overall 14% dip in total equity inflows in January 2026, flexi-cap funds secured the highest inflow of Rs 7,672 crore.
Three flexi-cap schemes — HDFC Flexi Cap Fund – Direct Plan – Growth, Quant Flexi Cap Fund – Direct Plan – Growth and Bank of India Flexi Cap Fund — have stood out by delivering over 20% CAGR on lump sum investments over the last five years.
But strong returns are only one part of the story. Risk levels, portfolio strategy and consistency also matter when choosing the right fund.
Let’s break it down in simple terms.
1. HDFC Flexi Cap Fund – Direct Plan
5-year lump sum return: 20.35% CAGR
Rs 1 lakh invested 5 years ago would have grown to about Rs 2.52 lakh.
5-year SIP return: 19.14% CAGR
A Rs 10,000 monthly SIP started 5 years ago would now be worth around Rs 9.65 lakh.
Launched in 2013, this is one of the largest flexi cap funds in the category, managing Rs 97,452 crore in assets. It is benchmarked against the NIFTY 500 TRI and falls under the “Very High” risk category.
What stands out is its relatively stable risk profile. With a beta of 0.77, the fund has been less volatile than the broader market. Its alpha of 7.17 suggests strong outperformance over the benchmark. The Sharpe and Sortino ratios also indicate healthy risk-adjusted returns.
Portfolio strategy:
The fund has a strong tilt towards financial stocks. ICICI Bank, HDFC Bank, Axis Bank, SBI and SBI Life Insurance are among its top holdings. This shows a clear conviction in India’s banking and financial growth story.
2. Quant Flexi Cap Fund – Direct Plan
5-year lump sum return: 20.20% CAGR
Rs 1 lakh invested would now be around Rs 2.51 lakh.
5-year SIP return: 13.5% CAGR
Rs 10,000 monthly SIP started 5 years ago would have grown to nearly Rs 8.41 lakh.
Quant’s fund has been known for its aggressive and tactical style. It manages Rs 6,221 crore in assets and also falls under the “Very High” risk category.
However, its volatility is higher. A beta of 1.18 and standard deviation of 16.36% indicate that the fund moves more sharply than the market. While it has delivered strong returns, its alpha of 0.31 shows only marginal outperformance over the benchmark in risk-adjusted terms.
Portfolio strategy:
The fund takes concentrated bets. Top holdings include Samvardhana Motherson, Adani Power, Adani Enterprises, Aurobindo Pharma and Jio Financial Services. The exposure spans consumer discretionary, energy, materials and healthcare — reflecting a high-conviction approach.
3. Bank of India Flexi Cap Fund – Direct Plan
5-year lump sum return: 20.06% CAGR
Rs 1 lakh would have grown to about Rs 2.49 lakh.
5-year SIP return: 16.74% CAGR
Rs 10,000 monthly SIP would now be close to Rs 9.10 lakh.
Though launched in 2020, this fund has quickly emerged as a strong performer. Since launch, it has delivered over 26% returns. It manages Rs 2,167 crore in assets and has one of the lowest expense ratios among the three at 0.58%.
On the risk side, it is also in the “Very High” category. Its beta of 1.18 suggests higher volatility compared to the benchmark. However, it has delivered a healthy alpha of 4.15, indicating meaningful outperformance.
Portfolio strategy:
The fund has diversified exposure. SBI is the top holding, followed by Hindustan Aeronautics, Vedanta, ICICI Bank and Bharti Airtel. The mix reflects exposure to financials, industrials, materials and telecom.
So, which one is better?
All three funds have delivered over 20% CAGR on lump sum investments over the past five years.
HDFC Flexi Cap appears relatively more stable with lower volatility and strong risk-adjusted metrics.
Quant Flexi Cap has delivered strong returns but with higher volatility and aggressive sector bets.
Bank of India Flexi Cap combines strong returns with competitive expense ratio and decent alpha generation.
The “best” fund ultimately depends on your risk appetite and investment horizon.
A word of caution
While past returns look impressive, investors should not select a fund based only on 5-year performance numbers. High returns often come with high volatility.
Before investing, check your risk tolerance, portfolio concentration, fund manager strategy, expense ratio and consistency across market cycles.
Flexi cap funds are suitable for long-term investors who can stay invested for at least 5–7 years and handle market ups and downs calmly. Remember, in investing, discipline and patience often matter more than chasing the highest return chart.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.