Neutral impactSector
Flexi-cap funds received 3x more inflows than multi-caps in FY26 despite similar returns: What should investors do?
Mint 4 hrs ago·18 Aug 2026, 5:14 pm
Flexi-cap and multi-cap funds both invest across large-, mid- and small-caps, but their mandates differ. Despite similar returns, FY26 saw a sharp divergence in inflows. What is driving investor preference, and should investors rethink their multi-cap holdings?
Flexi-cap funds have become the dominant choice for many investors. Their ability to dynamically shift capital between market caps based on valuation and performance makes them highly adaptable. This flexibility allows fund managers to navigate market volatility more effectively, which appeals to investors seeking a balance between growth and safety.
For investors, this trend suggests a potential need to review their existing multi-cap portfolios. While multi-cap funds are still a valid strategy, the consistent inflows into flexi-cap funds indicate a market preference for greater managerial control. Investors should assess whether their current allocation aligns with their long-term goals and risk tolerance.
Key takeaways
- Category: Sector.
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