Flexi Cap Funds are a category of equity mutual funds that offer investors the flexibility to invest across the entire spectrum of market capitalisations—large-cap, mid-cap, and small-cap stocks. Unlike traditional equity funds that focus on a specific segment, Flexi Cap Funds provide fund managers with the freedom to dynamically adjust the portfolio based on changing market conditions and growth opportunities. In this read, we will explore the comparison of two popular flexi cap schemes: Parag Parekh Flexi Cap and HDFC Flexi Cap Fund.
| Parameter | Parag Parikh Flexi Cap Fund | HDFC Flexi Cap Fund |
| Investment Objective | Long-term capital growth by investing in a diversified portfolio, including up to 35% in international equities. | Long-term capital appreciation by investing in equity across large, mid, and small caps; does not guarantee achievement of investment goal. |
| Fund Type | Open-ended Flexi Cap (with international exposure) | Open-ended Flexi Cap |
| 3-Year Avg. Return (Direct Plan) | 18.97% | 24.29% |
| 5-Year Avg. Return (Direct Plan) | 18.95% | 30.69% |
| Since Inception Return | ~19.44% (Direct Plan) | 17.18% |
| Investment Style | Bottom-up, value-oriented, includes global diversification | Actively managed, growth-oriented with higher domestic equity allocation |
Parag Parikh Flexi Cap Fund (PPFCF) is an open-ended, equity-oriented investment scheme offering flexibility to allocate at least 65% of its assets in Indian equities, with the remainder (up to 35%) invested in international equities, domestic debt, and money market securities.
The fund's core portfolio is focused on long-term equity investments. Key factors in the selection process include the quality of management, sector and business characteristics (such as return on capital, entry barriers, capital intensity, use of debt, growth prospects, etc.), and company valuations.
The investment approach remains focused on evaluating individual opportunities based on their merits. The strategy is not influenced heavily by macroeconomic trends but prioritises the potential of individual companies. Currently, approximately 26.30% of the fund's assets are in cash holdings, debt and money market instruments, and arbitrage positions, which are poised for deployment into long-term investments when favourable opportunities arise.
The following table summarises the performance of the Parag Parikh Flexi Cap Fund (both Regular and Direct Growth options) compared to the Nifty 500 TRI benchmark over rolling periods of 3, 5, and 10 years:
| Rolling Period | Scheme | Average Return | Maximum Return | Minimum Return |
| 3 Years | Parag Parikh Flexi Cap Fund - Reg - Growth | 18.08% | 36.29% | 0.07% |
| Parag Parikh Flexi Cap Fund - Direct - Growth | 18.97% | 37.64% | 0.74% | |
| Nifty 500 TRI (Benchmark) | 14.71% | 33.50% | -6.31% | |
| 5 Years | Parag Parikh Flexi Cap Fund - Reg - Growth | 18.06% | 32.75% | 3.44% |
| Parag Parikh Flexi Cap Fund - Direct - Growth | 18.95% | 33.93% | 4.09% | |
| Nifty 500 TRI (Benchmark) | 14.03% | 28.87% | -1.05% | |
| 10 Years | Parag Parikh Flexi Cap Fund - Reg - Growth | 18.56% | 20.60% | 16.35% |
| Parag Parikh Flexi Cap Fund - Direct - Growth | 19.44% | 21.48% | 17.23% | |
| Nifty 500 TRI (Benchmark) | 14.98% | 17.02% | 11.71% |
(Assumption: ₹10,000 invested on the 1st of every month)
| Period | Total Amount Invested (₹) | Market Value (Regular Plan) (₹) | Market Value (Direct Plan) (₹) |
| Since Inception (May 24, 2013) | 14,40,000 | 49,02,000 | 52,10,114 |
| Last 1 Year (Apr 30, 2024 – Apr 30, 2025) | 1,20,000 | 1,23,628 | 1,24,089 |
| Last 3 Years (Apr 29, 2022 – Apr 30, 2025) | 3,60,000 | 4,85,998 | 4,92,208 |
| Last 5 Years (Apr 30, 2020 – Apr 30, 2025) | 6,00,000 | 10,03,082 | 10,28,136 |
| Last 10 Years (Apr 30, 2015 – Apr 30, 2025) | 12,00,000 | 33,32,416 | 35,08,210 |
The HDFC Flexi Cap Fund is an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks. It aims to generate capital appreciation and income through a portfolio primarily focused on equity and equity-related instruments. The scheme does not guarantee the realisation of its investment objective.
The following table highlights the returns of the HDFC Flexi Cap Fund compared to its benchmark over 1-year, 3-year, 5-year, 10-year, and since inception periods:
| Time Period | Scheme Returns (%) | Benchmark Returns (%) | Additional Benchmark Returns (%) |
| 1 Year | 16.62% | 5.95% | 9.01% |
| 3 Years | 24.29% | 15.33% | 13.78% |
| 5 Years | 30.69% | 23.63% | 21.16% |
| 10 Years | 16.17% | 13.80% | 12.88% |
| Since Inception | 17.18% | 14.42% | 13.45% |
The following table shows the value of a ₹10,000 investment over different time periods:
| Time Period | Scheme Value (₹) | Benchmark Value (₹) | Additional Benchmark Value (₹) |
| 1 Year | ₹11,661.56 | ₹10,594.85 | ₹10,901.08 |
| 3 Years | ₹19,222.62 | ₹15,350.73 | ₹14,741.82 |
| 5 Years | ₹38,147.50 | ₹28,897.31 | ₹26,126.76 |
| 10 Years | ₹44,836.54 | ₹36,475.08 | ₹33,605.67 |
| Since Inception | ₹70,638.58 | ₹52,689.81 | ₹47,413.05 |
The HDFC Flexi Cap Fund has consistently delivered strong returns compared to its benchmark. Particularly over 3 and 5 years, the fund’s performance has been notably superior, with the scheme’s returns significantly outpacing the benchmark's returns.
Both the Parag Parikh Flexi Cap Fund and the HDFC Flexi Cap Fund demonstrate a strong track record of consistent outperformance against their respective benchmarks. The Parag Parikh Flexi Cap Fund stands out for its disciplined long-term investment approach, focusing on high-quality companies, and consistently delivering superior returns across multiple time frames.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 16, 2025, 9:33 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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