Archive · 22 Jan 2026
Flexi Cap Funds' AUM Surges 148% in India
Flexi cap mutual funds in India have seen a big increase in their assets under management (AUM) over the last four years.
In December 2025, the AUM of these funds reached Rs 5.52 lakh crore, which is more than double the amount from December 2021.
Investors are putting more money into these funds because they can invest in different types of stocks, which helps manage risk and provides better returns.
The number of investors in these funds has also doubled.
However, market analysts note that a large portion of recent mutual fund deployment has gone into IPOs, reflecting selective risk-taking and caution in the secondary market.
With IPO issuance slowing and SIP flows staying healthy, the next phase of deployment could either rebuild cash buffers or move into secondary equities, supporting markets in the coming months.
Flexi cap funds' AUM surged 148.28% over the last four years, reaching Rs 5.52 lakh crore in December 2025.
Net inflows into these funds increased by 316% over the last four years, with Rs 10,019 crore in December 2025.
Inflows have grown by 78.44% since the beginning of FY26 from Rs 5,615 crore in March 2025.
Flexi cap funds offer flexibility to invest across large-cap, mid-cap, and small-cap stocks, providing better diversification and risk management.
The number of flexi cap folios doubled to 2.21 crore in December 2025, up from 1.10 crore in December 2021.
- Who
- Investors, fund managers, and market analysts in India
- What
- Surge in assets under management (AUM) of flexi cap mutual funds and changes in investment strategies
- When
- Over the last four years, with data points in December 2021 and December 2025
- Where
- India
- Why
- Flexi cap funds offer flexibility to invest across large-cap, mid-cap, and small-cap stocks, providing better diversification and risk management. Fund managers prefer price discovery and structural growth opportunities through IPOs instead of chasing secondary market valuations.
Investors and Fund Managers
Market Analysts
Investment Strategy
Investors and Fund Managers
Flexi cap funds offer flexibility to invest across large-cap, mid-cap, and small-cap stocks, providing better diversification and risk management.
Market Analysts
Fund managers prefer price discovery and structural growth opportunities through IPOs instead of chasing secondary market valuations.
Market Impact
Investors and Fund Managers
The surge in AUM and inflows indicates strong investor confidence in flexi cap funds.
Market Analysts
The decline in cash levels and shift towards IPOs suggest selective risk-taking and caution in the secondary market.
- AUM in December 2025
- Rs 5.52 lakh crore
- AUM in December 2021
- Rs 2.22 lakh crore
- Net Inflows in December 2025
- Rs 10,019 crore
- Net Inflows in 2021
- Rs 2,409 crore
- Inflows Growth in FY26
- 78.44%
- Average 5-Year Annualised Returns
- 16.08%
- Top Performers' Annualised Returns
- Above 20%
- Number of Flexi Cap Folios in December 2025
- 2.21 crore
- Number of Flexi Cap Folios in December 2021
- 1.10 crore
- Equity MF Cash Holdings
- Around 5%
- Equity MF Cash Holdings in FY25
- About 5.2%
- Equity MF Cash Holdings in Nine-Month FY26
- About 5.4%
- Mutual Fund Cash as Share of Total Market Capitalisation
- 0.38%
- Three-Year Average of Mutual Fund Cash as Share of Total Market Capitalisation
- 0.32%