New Delhi, Dec. 28 -- Investor money has swung decisively towards flexi-cap funds in recent months. From May to November 2025, flexi-cap schemes accounted for 28.7% of total net inflows into diversified equity mutual fund categories.

The timing of this surge is telling. After a prolonged rally in mid- and small-cap stocks, valuation comfort has begun to shift back towards large-caps. As a result, flexi-cap funds, by virtue of their tilt towards large-cap stocks, have started to outperform others.

This has reinforced a popular belief among investors: flexi-cap funds offer diversification without forcing exposure to expensive segments of the market. But flexi-caps are not the only category that promises diversification across market caps....