India's largest flexi-cap funds trail smaller rivals in one-year returns

AUM concentrated in top schemes

India's flexi-cap mutual fund category held ₹6,11,390 crore (approximately US$73.3 billion) in assets under management (AUM) as of 31 August 2026, according to AMFI monthly data. More than half of this, specifically ₹3,17,403 crore (51.9%), was concentrated in just three schemes: Parag Parikh Flexi Cap, HDFC Flexi Cap, and Kotak Flexi Cap. Parag Parikh Flexi Cap alone managed nearly a quarter of the category's total AUM, making it the largest fund.

One-year performance disparity

Despite their significant asset base, none of these leading funds featured among the top one-year performers. As of 11 September 2026, Parag Parikh Flexi Cap reported a negative return of 4.04% over the past year. HDFC Flexi Cap saw a 1.86% return, while Kotak Flexi Cap gained a mere 0.10%.

In contrast, ITI Flexi Cap, with a much smaller AUM of ₹1,588 crore (0.26% of the category), delivered a 14.07% return over the same period, Value Research data shows.

Longer-term returns vary

Over a five-year horizon, the performance picture shifted. HDFC Flexi Cap, one of the three largest schemes, led the group with a 17.47% return. Bank of India Flexi Cap followed with 16.79%, and JM Flexi Cap delivered 15.74%. Parag Parikh Flexi Cap and Kotak Flexi Cap recorded 11.61% and 10.57% returns respectively over the same five-year period, according to Value Research. This demonstrates that asset size does not uniformly correlate with returns across different timeframes.

Investor considerations

These figures indicate that a fund's AUM does not consistently predict its recent performance. While large AUM can reflect a longer track record or sustained investor inflows, it does not guarantee superior short-term returns.

Investors evaluating flexi-cap funds should therefore analyse performance across various time periods, assess consistency, and understand the fund's investment strategy, rather than relying solely on asset size.