Flexible capitalization funds can invest in large-, mid- and small-cap stocks without being tied to a specific market capitalization segment. But while the category has grown to 46 schemes, most of its assets are concentrated in just three funds.
According to AMFI’s latest monthly data, flexible-cap funds’ total assets stood at ₹6,11,390 crores as on August 31, 2026.
From this, Parag Parikh Flexi Cap, HDFC Flexi Cap and Kotak Flexi Cap have managed together. ₹3,17,403 crore or about 51.9% of the total AUM for the category.
Here’s how these three flexible-cap funds performed and what investors should know.
How have the three largest flexible-cap funds performed?
| Flexible Lid Funds | AUM ( ₹ crore) | Share of the AUM category | 1 year refund |
| Parag Parikh Flexible Cap | 1,47,405 | 24.11% | -4.04% |
| HDFC Flexible Cap | 1,13,606 | 18.58% | 1.86% |
| Kotak Flexible Cap | 56 392 | 9.22% | 0.10% |
| Combined | 3,17,403 | 51.91% | — |
*Source: Value Study, AUM as of August 31, 2026, Direct Plans, Earnings as of September 11, 2026
The three largest schemes account for more than half of all flexible capitalization assets (about 52% of total AUM), but none of them were among the top performers over the one-year period, according to the data provided.
Parag Parikh Flexi Cap, the largest fund in the category, holding nearly a quarter of the category’s AUM, posted a negative return of 4.04% for the year. HDFC Flexi Cap was up 1.86% and Kotak Flexi Cap was up 0.10%.
For investors, the numbers show that category size and recent performance have held steady together.
Which flexible-cap funds have delivered the highest annual returns?
| Flexible Lid Funds | AUM ( ₹ crore) | 1 year refund |
| ITI flexible cap | 1588 | 14.07% |
| Quant Flexi Cap | 7,364 | 13.72% |
| Flexible Bank of India Cap | 2953 | 13.32% |
*Source: Value Study, AUM as of August 31, 2026, Direct Plans, Earnings as of September 11, 2026
ITI Flexi Cap had an AUM of just ₹1,588 crore, equivalent to about 0.26% of the total AUM for this category, but generated an annual return of 14.07%. This compares to a negative return of 4.04% from Parag Parikh Flexi Cap despite the latter managing nearly 93 times more money.
This highlights an important point for investors: a fund’s AUM is not indicative of its recent performance. Large AUM may reflect factors such as longer operating history, investor awareness and sustained inflows rather than superior returns in each period.
What will happen in five years?
Long-term numbers paint a slightly different picture. HDFC Flexi Cap, one of the three largest schemes, topped the chart with a return of 17.47% over the five-year period. Bank of India Flexi Cap is next at 16.79% and JM Flexi Cap at 15.74%.
In contrast, Parag Parikh Flexi Cap and Kotak Flexi Cap have returned 11.61% and 10.57% respectively during the same period, as per the data provided.
For investors, this comparison shows why AUM alone should not be used to evaluate a flexible-cap fund.
The largest schemes may dominate the category in terms of assets, but smaller funds have also delivered higher returns in certain periods.
Thus, investors need to look at performance over time, as well as the consistency and investment strategy of a fund, rather than assuming that the largest fund is necessarily the best.
Disclaimer: This is for educational/informational purposes only and should not be construed as any investment advice. Always consult a SEBI registered advisor before taking any investment decisions.