New Delhi, Aug. 25 -- Flexicap funds were originally launched to allow investors to diversify across market caps-large, mid, and small caps. But in practice, these funds have largely remained large-cap oriented, with fund managers making limited allocations to stocks in other segments.

Despite the fund manager's free mandate to move between market caps, flexicap tends to favour large-cap stocks.

Generally, the regular flexicap fund category's allocation to large-caps has been in the range of 62-78%, with less allocation to mid- and small-cap stocks. Parag Parikh Flexicap Fund's allocation to large-cap stocks stood at 62% as of 31 July 2025, while HDFC Flexicap's large-cap allocation stood at 84%, according to Value Research. The regular...