3 Best Flexi Cap Funds: Is it a Good Investment for 2025?
Are you looking for the right investment to grow your wealth in 2025? If yes, the Best Flexi Cap Mutual Funds offer a great alternative to achieve long-term wealth. Did it get you wondering how?
If yes, here is your answer per the survey by the Securities & Exchange Board of India (SEBI) says that by the end of January 2024, the total AUM for flexi cap Equity Mutual Funds in India will cross 3.34 trillion Indian rupees, even beating the large cap funds that stood at an AUM amounting to three trillion Indian rupees only.
However, how do you know which fund will be a valuable addition to your portfolio?
This analysis brings you the 3 best flexi cap funds that are checked out by expert analysts based on performance, strong foundations and expert investment strategies.
But before you begin, let's see the 5 principles on which these top flexi cap mutual funds have been shortlisted.
How to Choose a Flexi Cap Mutual Fund for Growth?
Here are the 5 parameters on which you can filter the best flexi cap fund for yourself:
- Look for Steady Performance: The best flexi cap fund is trusted on the basis of delivering consistent returns. Along with stable returns, a good fund is filtered on its ability to beat the market ups and downs and give a strong long-term track record.
- Check the Fund Manager’s Experience: The right fund manager makes all the difference. Look at the time frame of how long the fund manager is managing Mutual Funds successfully through different market conditions.
- Review the Fund’s Holdings: Make sure the fund keeps a diversified portfolio by investing in a variety of growth stocks across different sectors. A well-diversified portfolio helps reduce risk while focusing on growth opportunities.
- Compare Expense Ratios: Lower fees mean more of your money is working for you. Conduct a thorough comparison of the expense ratio with other flexi cap funds, and the one with lower costs will help you earn maximum returns.
- Understand the Fund’s Strategy: Check the fund’s investment approach to make sure it fits with your growth goals.
Well, based on these above rationales, the mutual funds expert has shortlisted below a list of the top 3 flexi cap mutual funds for 2025.
List of 3 Top Performing Flexi Cap Mutual Funds for 2025
The following 3 best flexi cap funds will help you achieve long-term growth with the start of fiscal year 2025:
| Fund Name | Launch Date | AUM (Cr) | 3 Year Returns (%) | 5 Year Returns (%) |
|---|---|---|---|---|
| Franklin India Flexi Cap Fund | 29.09.1994 | 17,808 | 17.33% | 15.07% |
| Parag Parikh Flexi Cap Fund | 05.05.2013 | 84,639 | 19.12% | 18.61% |
| JM Flexi Cap Fund | 23.09.2008 | 4,955 | 16.32% | 16.60 |
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Franklin India Flexi Cap Fund
After being launched on 29th September 1994, the Franklin India Flexi Cap Fund has delivered 17.33% returns in the last 3 years, outstandingly beating its benchmark of 14.48% returns. You can refer to the below graph for the data:
But what is the investment style adopted by this fund that led to this amazing performance? You see, Franklin India Flexi Cap Fund combines value and growth along with picking high-quality businesses that show strong balance sheets with a reliable team of management.
Yes, it keeps a major investment in new emerging opportunities that are more focused on technology-driven sectors. Moreover, it gives you a diverse portfolio by investing across different market caps, likely avoiding momentum-driven bets and using the popular buy-and-hold approach.
However, check out the current quality of stocks before investing in this flexi cap fund:
| Fundamental Ratios | Values |
|---|---|
| Sales Growth | 16.06% |
| Earnings Growth | 16.80% |
| Cash Flow | 36.18% |
| PE- Valuations | 22.69% |
The above data shows a strong growth with 16.06% sales growth and 16.80% earnings growth. These both are signs of solid growth and profitability along with a high 36.18% cash flow highlighting sound financial health. In comparison, a 22.69% PE (Price-to-earning ratio) suggests its reasonable value for long-term future growth.
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Parag Parikh Flexi Cap Fund
This fund follows an active investment strategy with a major focus on generating high returns by using value investing and capital preservation. Likewise, with a flexible allocation between domestic and foreign equities, it targets investment in the top-listed Indian stocks with the aim of deriving long-term capital appreciation.
Let's talk about the facts and for that here is a graph showcasing the rolling returns of the Parag Parikh flexi cap fund over different times:
The next step is to check out the quality of this fund and for that, you need the following checks:
| Fundamental Ratios | Values |
|---|---|
| Sales Growth | 13.70% |
| Earnings Growth | 17.79% |
| Cash Flow | 20.77% |
| PE- Valuations | 15.70% |
This fund has diversified up to 35% in foreign securities with a core focus on long-term investments, giving a robust sales growth of 13.70% and 17.79% earning growth. It shows steady revenue expansion and improving profitability.
The strong 20.77% cash flow shows healthy financial stability, offering chances of reinvestment for future growth.
Additionally, a 15.70% PE ratio suggests the fund is fairly valued, offering attractive opportunities for long-term investors.
Pro Tip: Get ahead of time by calculating returns on the SIP Calculator.
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JM Flexi Cap Fund
This fund belongs to the equity flexi cap funds type that follows a broader investment strategy of targeting high-growth stocks with good risk and reward dynamics along with flexibility in the portfolio.
Moreover, with a dynamic portfolio that can be easily adjusted as per the market conditions JM Flexi Cap Fund will give you high alpha with risk-adjusted returns.
Let’s see the 3 and 5 years rolling returns to double proof why this fund was selected amongst the best flexi cap mutual funds:
Let’s take a look at the stock quality:
| Fundamental Ratios | Values |
|---|---|
| Sales Growth | 15.63% |
| Earnings Growth | 21.14% |
| Cash Flow | 25.14% |
| PE- Valuations | 23.55% |
To analyse the above data, this fund's sales growth stands at 15.63%, meaning good margins for expansion, while 21.14% earning growth reflects rising profits.
Similarly, the strong 25.14% cash flow is a good indicator of the financial stability of JM Flexi Cap Fund. It’s a great option for long-term investors.
Can I Do SIP in Flexi Cap Mutual Funds for Long-term Growth?
Yes, you can easily start a systematic investment plan or SIP in these 3 best flexi cap mutual funds for 2025. The following are the merits of SIP:
- Flexible Investments: Flexi Cap funds invest in large, mid and small-cap companies, adapting to market opportunities.
- Rupee Cost Averaging: SIP allows you to buy units at different price levels, reducing the impact of market volatility.
- Power of Compounding: Regular investments via SIPs help you make good earnings on the invested amount plus the accumulated interest.
- Steady Wealth Creation: SIP in Flexi Cap funds is ideal for long-term goals, offering balanced growth and diversification.
Must read: 11 Common Mistakes to Avoid While Investing Mutual Funds
To Conclude on the Best Flexi cap Funds for 2025
In short, if you are looking to find a balance between growth and long-term wealth creation, these 3 best flexi cap mutual funds strike a good bargain. You can start your SIP investments today and take the first step toward securing your financial wealth with ample confidence in 2025.
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