Flexi cap mutual funds achieved a record monthly inflow of ₹10,147 crore in April 2026, despite moderating equity inflows and market volatility, according to the latest data from the Association of Mutual Funds in India (AMFI). The category witnessed a marginal 1% rise compared to ₹10,054 crore received in March, marking its highest-ever monthly inflow. As reported by The Economic Times, the strong traction comes at a time when broader equity inflows declined 5% month-on-month to ₹38,440 crore in April from ₹40,450 crore in March, while SIP contributions also slipped 3% to ₹31,115 crore. This performance reflects investor trust in fund managers for flexible allocation across market caps rather than caution.
According to reports from Zee Business, India's passive investing market represents 16-18% of the mutual fund industry, significantly lower than global adoption rates. As explained by Mohit Gang, CEO of Moneyfront, passive funds track market indices such as the Nifty 50, where portfolios automatically mirror top companies by market capitalisation. The structure ensures companies that perform well gradually enter the index while weaker performers exit over time, creating a continuously evolving market representation.
As reported by The Economic Times, flexi cap funds are increasingly being used as a core portfolio allocation because of their ability to participate across market segments without being restricted to a single market-cap category. According to Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), with the top 3 flexi cap funds alone managing ₹2.9 lakh crore — over 53% of total category AUM, the depth and track record is well-established. Pallav Agarwal, Certified Financial Planner at Bhava Services LLP, noted that by preferring flexicap funds, investors are relying more on fund managers to allocate between market caps and not taking these decisions themselves, which is not a sign of caution but a sign of choosing flexibility over concentrated calls.
According to the experts' discussion with Zee Business, passive funds offer significant cost advantages over active funds. Active equity funds typically charge expense ratios of 1-2%, while passive funds may charge a fraction of that amount. Gang highlighted that "this difference compounds significantly over 15-20 years and can materially impact final returns." However, both strategies carry different risk profiles - passive investing removes fund manager risk but does not eliminate market risk, while active funds carry the risk of underperformance if fund manager decisions go wrong.
As reported by The Economic Times, experts suggest that flexi cap funds should anchor 30-40% of your core equity portfolio, with some recommending even higher allocations of 50-60% of equity allocation in this category. Nikunj Saraf, CEO of Choice Wealth, emphasised that index funds deliver market returns only, while active managers like Parag Parikh have demonstrated consistent alpha over benchmarks across full market cycles. The category is also seen as a strong starting point for new investors, as it saves them from taking market cap-based investment decisions and allows fund managers to allocate and rebalance between capitalisations.
In April, around 45 flexi cap funds marked their presence, with eight funds delivering double-digit returns. According to The Economic Times, Quant Flexi Cap Fund gave the highest return of 13.55% in April, followed by HSBC Flexi Cap Fund which delivered 11.54% return. JioBlackRock Flexi Cap Fund, a relatively new entrant, gave 6.89%, while Parag Parikh Flexi Cap Fund, the largest fund in the category, gave 5.73%. Given recent market corrections due to steep rise in crude oil prices, investors may increase allocation in flexicap funds to benefit from attractive valuations, as these funds naturally tilt toward large-caps in uncertain environments.
