Higher returns and increased preference for diversification drive surge in investor interest in Flexi-cap funds over the last five years: ICRA Analytics

Mumbai, June 30 -- cap funds. The net Assets under Management (AUM) of these funds has grown by over 175 per cent in the last four years at Rs 4.71 lakh crore in May 2025, as against Rs 1.71 lakh crore in May 2021.

Inflows into these funds has increased by nearly 239.79 per cent at Rs 3841.32 crore in May 2025, as compared with Rs 1130.48 crore in May 2021. Flexi-cap funds posted category average returns of 23.40 per cent during the 5-year period, ICRA Analytics said.

"The flexible allocation across large-, mid-, and small-cap stocks allows fund managers to adapt to market conditions, making them attractive during uncertain times. High historical returns are another major driver for investors to select this fund over others. Moreover, unl...