Best Flexi Cap Mutual Funds in August 2026

Last Reviewed and Updated: 17 Aug 2026

A data driven ranking of 32 direct growth flexi cap schemes, based on fund data last updated 16 August 2026

Flexi cap funds remain one of the most widely held equity categories among Indian investors. SEBI requires these schemes to hold at least 65% of assets in equity and equity related instruments but places no restriction on the split between large, mid, and small cap stocks.

This gives fund managers complete freedom to move allocations across the market cap spectrum as opportunities shift, which is the category's defining characteristic and the main source of differentiation between funds.

This article analyses 32 direct growth flexi cap schemes using data as of 16 August 2026. Of the 32 funds, 27 have a 3 year return and 20 have a 5 year return, with 5 funds too recently launched to have either.

The 3 year category benchmark return is 12.68% and the 5 year benchmark return is 11.88%. Both are meaningful reference points: every fund in the top 10 on either horizon has comfortably outperformed these benchmarks, but several funds lower in the ranking have not.

A note on the data: several funds carry expense ratios significantly above the typical direct plan range for this category, and these are flagged where relevant as they may reflect regular plan data in the source.

How These Funds Were Ranked

Rankings are presented side by side for 3 year and 5 year annualised returns. Six funds appear in the top 10 of both tables, which is the primary signal of sustained category leadership. Expense ratio, AUM, and 3 year Sharpe ratio are included throughout.

Top 10 Flexi Cap Funds: 3 Year vs 5 Year Rankings

Six funds place in the top 10 of both the 3 year and 5 year tables: Bank of India Flexi Cap Fund, HDFC Flexi Cap Fund, HSBC Flexi Cap Fund, ICICI Prudential Flexicap Fund, Motilal Oswal Flexicap Fund, and Quant Flexi Cap Fund. These six represent the category's most consistent performers across both time horizons.

Ranked by 3 Year Annualised Return

Rank	Fund	3Y Return	AUM
1	Bank of India Flexi Cap Fund	22.22%	₹2,786.40 Cr
2	Motilal Oswal Flexicap Fund	21.05%	₹13,940.39 Cr
3	Invesco India Flexi Cap Fund	20.41%	₹5,467.90 Cr
4	ITI Flexi Cap Fund	20.35%	₹1,467.30 Cr
5	360 ONE Flexicap Fund	19.69%	₹2,118.85 Cr
6	ICICI Prudential Flexicap Fund	19.19%	₹24,099.78 Cr
7	Bajaj Finserv Flexi Cap Fund	18.17%	₹8,173.31 Cr
8	Quant Flexi Cap Fund	18.02%	₹7,261.61 Cr
9	HSBC Flexi Cap Fund	17.82%	₹5,717.88 Cr
10	HDFC Flexi Cap Fund	17.75%	₹1,10,736.41 Cr

27 of 32 funds have a 3 year return. NA* indicates no data. The 3 year benchmark is 12.68%, which all 10 funds above comfortably exceed. Motilal Oswal (1.57%), HSBC (1.33%), and Quant (1.05%) expense ratios may reflect regular plan data and should be verified before investing.

Ranked by 5 Year Annualised Return

Rank	Fund	5Y Return	AUM
1	HDFC Flexi Cap Fund	18.66%	₹1,10,736.41 Cr
2	Bank of India Flexi Cap Fund	18.04%	₹2,786.40 Cr
3	JM Flexicap Fund	17.72%	₹5,177.88 Cr
4	ICICI Prudential Flexicap Fund	16.80%	₹24,099.78 Cr
5	Quant Flexi Cap Fund	16.50%	₹7,261.61 Cr
6	HSBC Flexi Cap Fund	14.67%	₹5,717.88 Cr
7	Edelweiss Flexi Cap Fund	14.52%	₹3,612.71 Cr
8	Franklin India Flexi Cap Fund	13.73%	₹19,509.44 Cr
9	Motilal Oswal Flexicap Fund	13.47%	₹13,940.39 Cr
10	Parag Parikh Flexi Cap Fund	13.47%	₹1,48,429.00 Cr

20 of 32 funds have a 5 year return. The 5 year benchmark is 11.88%, which all 10 funds above have outperformed. JM Flexicap (1.05%) and HSBC (1.33%) expense ratios should be verified against direct plan pricing.

A Closer Look at the Top Performers

1. Bank of India Flexi Cap Fund: Leads 3 Year Table, Second Over 5 Years

Bank of India Flexi Cap Fund, managed by Alok Singh, leads the 3 year return table at 22.22% and ranks 2nd on the 5 year table at 18.04%.

It carries an expense ratio of 0.50%, one of the lowest among funds with a proven dual horizon track record, and a Sharpe ratio of 0.75 that places it among the better risk adjusted performers in the category.

At Rs 2,786.40 Cr in AUM it remains relatively compact, allowing the manager to deploy capital with greater agility across market cap segments.

The combination of leading returns on both time horizons alongside a low cost structure is rare and makes Bank of India Flexi Cap Fund the most comprehensively strong option in this data set.

2. HDFC Flexi Cap Fund: Leads 5 Year Table at Remarkable Scale

HDFC Flexi Cap Fund, managed by Amit Ganatra, leads the 5 year return table at 18.66% and ranks 10th on the 3 year table at 17.75%.

With Rs 1,10,736.41 Cr in AUM it is the largest flexi cap fund in the data set after Parag Parikh, and managing this scale while maintaining strong performance across both time horizons is a notable achievement.

Its Sharpe ratio of 0.81 is the highest in the entire category, indicating the best risk adjusted returns over 3 years. Its expense ratio of 0.75% is reasonable given its scale.

For investors who want a large, institutionally managed fund with the best long term return record in the category, HDFC Flexi Cap Fund is the clearest choice.

3. Motilal Oswal Flexicap Fund: Strong 3 Year Return, Weak 5 Year History

Motilal Oswal Flexicap Fund, managed by Rakesh Shetty, ranks 2nd on the 3 year table at 21.05% but only 9th on the 5 year table at 13.47%, a meaningful divergence that reflects significantly stronger recent performance than longer term history. Its Sharpe ratio of 0.77 is the third highest in the category.

However, its expense ratio of 1.57% in this data set is well above the typical direct plan range for a flexi cap fund and likely reflects a regular plan entry. The June 2026 data for this fund showed a direct plan expense ratio of 0.87%.

Investors should verify the current direct plan expense before considering this fund, as the gross return gap at 1.57% versus peers at 0.50% to 0.75% erodes net returns significantly.

4. 360 ONE Flexicap Fund: Strongest New Entrant in the Top 5

360 ONE Flexicap Fund, managed by Mayur Patel, ranks 5th by 3 year return at 19.69% with an expense ratio of 0.51% and a Sharpe ratio of 0.75.

It does not yet have a 5 year track record, but its 3 year profile across return, cost, and risk adjusted performance is strong enough to place it among the more compelling options in the category.

The fund's AUM of Rs 2,118.85 Cr gives it operational flexibility in the mid and small cap segments where flexi cap funds can differentiate most meaningfully.

5. ICICI Prudential Flexicap Fund: Consistent Performer With Meaningful Scale

ICICI Prudential Flexicap Fund, managed by Rajat Chandak, ranks 6th by 3 year return (19.19%) and 4th by 5 year return (16.80%), placing it comfortably in the top 10 on both horizons. Its Sharpe ratio of 0.73 and expense ratio of 0.67% are both solid.

At Rs 24,099.78 Cr in AUM, the fund operates at a scale that provides strong operational stability. For investors who want a fund with established dual horizon consistency and institutional scale, ICICI Prudential Flexicap Fund is one of the more reliable choices in the category.

Best Risk Adjusted Returns: Highest Sharpe Ratio

The Sharpe ratio measures return per unit of risk over the 3 year period. In the flexi cap category, where managers can shift allocations across the market cap spectrum, a high Sharpe ratio is a particularly meaningful signal because it indicates the manager has generated strong returns without taking on proportionally higher volatility.

Fund	3Y Sharpe Ratio	3Y Return
HDFC Flexi Cap Fund	0.81	17.75%
Parag Parikh Flexi Cap Fund	0.78	14.71%
Motilal Oswal Flexicap Fund	0.77	21.05%
Invesco India Flexi Cap Fund	0.76	20.41%
360 ONE Flexicap Fund	0.75	19.69%
Bank of India Flexi Cap Fund	0.75	22.22%

HDFC Flexi Cap Fund leads the Sharpe table at 0.81 despite not being the top return generator over 3 years, confirming that its strong returns have come with the best risk control in the category.

Parag Parikh Flexi Cap Fund ranks 2nd on Sharpe (0.78) despite a modest 3 year return of 14.71%, reflecting the fund's historically lower volatility approach driven in part by its international equity allocation.

Bank of India Flexi Cap Fund is the only fund to rank first by 3 year return and simultaneously place in the top 6 on Sharpe ratio, which is the strongest combined signal in this data set.

Lowest Cost Flexi Cap Funds

Expense ratio matters significantly in flexi cap funds because the category already rewards active management when managers make good allocation calls. Keeping costs low ensures that more of any outperformance flows through to investors rather than being consumed by fees.

Fund	Expense Ratio
Mirae Asset Flexi Cap Fund	0.43%
Canara Robeco Flexi Cap Fund	0.45%
Nippon India Flexi Cap Fund	0.45%
Mahindra Manulife Flexi Cap Fund	0.46%
Bajaj Finserv Flexi Cap Fund	0.47%
JioBlackRock Flexi Cap Fund	0.50%
Bank of India Flexi Cap Fund	0.50%

NA* indicates no return data available for this period.

Bank of India Flexi Cap Fund at 0.50% stands out as the most striking entry in this table: among the lowest cost funds with a proven track record, it simultaneously delivers the highest returns in the entire category over both 3 and 5 years.

Bajaj Finserv Flexi Cap Fund at 0.47% is the cheapest fund with a 3 year return and delivers 18.17%, ranking 7th in the category, though the absence of a 5 year history and Sharpe ratio limits full evaluation.

Mirae Asset, Canara Robeco, and Nippon India are all competitively priced but deliver 3 year returns close to the 12.68% benchmark, raising questions about whether their active management has added meaningful value above a passive index.

Mahindra Manulife at 12.67% has delivered returns that effectively equal the benchmark after costs.

The Largest Flexi Cap Funds by AUM

The flexi cap category is home to two of the largest mutual funds in India. The AUM concentration in the top two funds is striking.

Fund	AUM
Parag Parikh Flexi Cap Fund	₹1,48,429.00 Cr
HDFC Flexi Cap Fund	₹1,10,736.41 Cr
Kotak Flexicap Fund	₹56,118.90 Cr
Aditya Birla Sun Life Flexi Cap	₹28,112.33 Cr
ICICI Prudential Flexicap Fund	₹24,099.78 Cr
Franklin India Flexi Cap Fund	₹19,509.44 Cr

Parag Parikh Flexi Cap Fund, at Rs 1,48,429 Cr, is the largest mutual fund in India by AUM. Its 3 year return of 14.71% and 5 year return of 13.47% both exceed the benchmark but rank in the lower half of the category relative to peers.

The fund's distinctive approach, which includes a meaningful allocation to international equity, has historically moderated both returns and volatility compared to purely domestic flexi cap funds.

HDFC Flexi Cap Fund, the second largest at Rs 1,10,736.41 Cr, is the more impressive story: it leads the 5 year return table and maintains the highest Sharpe ratio in the category despite its enormous scale.

Kotak Flexicap Fund at Rs 56,118.90 Cr has delivered 14.03% over 3 years and 12.34% over 5 years, both below benchmark on the 5 year horizon, raising similar questions to those about Mirae Asset and Canara Robeco in the cost table above.

Expense Ratios That Need Attention

Five funds in this data set carry expense ratios that are significantly above what direct plan flexi cap funds typically charge, and each warrants a specific note.

Fund	Expense Ratio	Note
LIC MF Flexi Cap Fund	2.18%	Highest in category; net return well below benchmark after costs
Motilal Oswal Flexicap Fund	1.57%	Likely regular plan; direct plan was 0.87% in June 2026 data
HSBC Flexi Cap Fund	1.33%	Likely regular plan; direct plan was 0.89% in June 2026 data
JM Flexicap Fund	1.05%	Likely regular plan; direct plan was 0.55% in June 2026 data
Quant Flexi Cap Fund	1.05%	Likely regular plan; direct plan was 0.67% in June 2026 data
NJ Flexi Cap Fund	1.03%	No return data; high cost with no history to evaluate

LIC MF Flexi Cap Fund is the most concerning entry in this table. At 2.18% expense ratio it is the highest cost fund in the category by a significant margin. Its 3 year return of 14.52% means the gross return above benchmark (12.68%) is just 1.84 percentage points, which is entirely consumed by the 2.18% annual cost.

Investors in LIC MF Flexi Cap Fund have effectively received below benchmark net returns while paying the highest fees in the category. The four funds with expense ratios around 1.05% to 1.57% (Motilal Oswal, HSBC, JM, Quant) all showed significantly lower direct plan expense ratios in the June 2026 data and very likely represent regular plan entries in the August source data.

Investors should confirm they are in the direct plan for any of these funds before drawing conclusions from the returns shown.

What These Funds Actually Hold

Flexi cap portfolios in this data set hold between 94% and 99% in equities, with the remainder in cash and minor debt positions. Private sector banks, particularly HDFC Bank and ICICI Bank, appear in the top holdings of the majority of funds. Reliance Industries, Larsen and Toubro, and Bharti Airtel are also common across the peer group.

Where funds differentiate most is in their mid cap and small cap exposure. The stronger returning funds in this data set, including Bank of India Flexi Cap, Invesco India, and 360 ONE Flexicap, tend to run higher conviction positions in mid cap and small cap names alongside their large cap anchor holdings.

Parag Parikh Flexi Cap Fund remains distinctive for allocating a meaningful portion of its portfolio to international equities, primarily US technology companies, which has historically dampened both upside during strong domestic cycles and downside during domestic corrections.

Things to Consider Before Investing

• The benchmark is available and tells a clear story. At 12.68% over 3 years and 11.88% over 5 years, several well known and large flexi cap funds have delivered returns only modestly above or at benchmark level. Kotak Flexicap (14.03% over 3 years, 12.34% over 5 years), Franklin India (13.73% over both horizons), Nippon India (12.85% over 3 years), and Mahindra Manulife (12.67% over 3 years) are among those where the active management premium relative to a passive benchmark has been limited after costs.

• Bank of India Flexi Cap Fund is the standout option in this data set for investors focused on proven dual horizon performance at low cost. It leads the 3 year table, ranks 2nd on 5 years, has a competitive 0.50% expense ratio, and places in the top 6 on Sharpe ratio. The main consideration is its smaller AUM of Rs 2,786.40 Cr, which warrants monitoring but also contributes to its operational flexibility.

• Motilal Oswal Flexicap Fund's 3 year return of 21.05% is the second highest in the category, but its 5 year return of 13.47% places it 9th. That 7.58 percentage point divergence between 3 and 5 year performance is the largest of any fund in the top 10 on either table, indicating that strong recent form has not been matched by equally strong longer term history. Its expense ratio in the source data (1.57%) also needs verification against its direct plan pricing.

• Parag Parikh Flexi Cap Fund, the largest fund in India at Rs 1,48,429 Cr, delivers returns above the benchmark on both horizons and has the second highest Sharpe ratio in the category. For investors who prioritise low volatility and a globally diversified approach, it remains a credible choice despite ranking in the lower half of the category on absolute returns.

• HDFC Flexi Cap Fund leads the 5 year table and has the best Sharpe ratio in the category at 0.81, which are two of the most important metrics for evaluating a fund manager's long term quality. The combination of scale (Rs 1,10,736.41 Cr), consistent performance, and best in category risk adjusted returns over 3 years makes it among the most compelling options for investors with a long holding horizon.

• Five funds have no return history: NJ Flexi Cap, Old Bridge Flexi Cap, Helios Flexi Cap, JioBlackRock Flexi Cap, and Capitalmind Flexi Cap. Among these, JioBlackRock at 0.50% is the most attractively priced newer entrant and worth monitoring as its track record develops.

Full Fund Universe: Quick Reference

Fund	3Y Return	5Y Return	Expense Ratio	AUM
Bank of India Flexi Cap Fund	22.22%	18.04%	0.50%	₹2,786.40 Cr
Motilal Oswal Flexicap Fund	21.05%	13.47%	1.57%	₹13,940.39 Cr
Invesco India Flexi Cap Fund	20.41%	NA*	0.52%	₹5,467.90 Cr
ITI Flexi Cap Fund	20.35%	NA*	0.97%	₹1,467.30 Cr
360 ONE Flexicap Fund	19.69%	NA*	0.51%	₹2,118.85 Cr
ICICI Prudential Flexicap Fund	19.19%	16.80%	0.67%	₹24,099.78 Cr
Bajaj Finserv Flexi Cap Fund	18.17%	NA*	0.47%	₹8,173.31 Cr
Quant Flexi Cap Fund	18.02%	16.50%	1.05%	₹7,261.61 Cr
HSBC Flexi Cap Fund	17.82%	14.67%	1.33%	₹5,717.88 Cr
HDFC Flexi Cap Fund	17.75%	18.66%	0.75%	₹1,10,736.41 Cr
JM Flexicap Fund	17.28%	17.72%	1.05%	₹5,177.88 Cr
Aditya Birla Sun Life Flexi Cap Fund	17.26%	13.35%	0.71%	₹28,112.33 Cr
Edelweiss Flexi Cap Fund	16.78%	14.52%	0.73%	₹3,612.71 Cr
Axis Flexi Cap Fund	15.81%	10.87%	0.97%	₹13,477.86 Cr
Baroda BNP Paribas Flexi Cap Fund	14.86%	NA*	0.85%	₹1,263.42 Cr
Parag Parikh Flexi Cap Fund	14.71%	13.47%	0.53%	₹1,48,429.00 Cr
LIC MF Flexi Cap Fund	14.52%	11.99%	2.18%	₹1,074.74 Cr
Kotak Flexicap Fund	14.03%	12.34%	0.61%	₹56,118.90 Cr
Mirae Asset Flexi Cap Fund	13.99%	NA*	0.43%	₹4,262.03 Cr
DSP Flexi Cap Fund	13.92%	11.43%	0.86%	₹12,422.33 Cr
Canara Robeco Flexi Cap Fund	13.82%	11.53%	0.45%	₹13,615.18 Cr
Franklin India Flexi Cap Fund	13.73%	13.73%	0.75%	₹19,509.44 Cr
Navi Flexi Cap Fund	13.57%	13.15%	0.51%	₹280.70 Cr
Bandhan Flexi Cap Fund	13.53%	11.53%	0.93%	₹7,417.40 Cr
Nippon India Flexi Cap Fund	12.85%	12.74%	0.45%	₹9,709.52 Cr
Mahindra Manulife Flexi Cap Fund	12.67%	NA*	0.46%	₹1,559.38 Cr
PGIM India Flexi Cap Fund	12.28%	9.64%	0.87%	₹5,817.78 Cr
NJ Flexi Cap Fund	NA*	NA*	1.03%	₹2,591.73 Cr
Old Bridge Flexi Cap Fund	NA*	NA*	0.83%	₹209.95 Cr
Helios Flexi Cap Fund	NA*	NA*	0.80%	₹7,577.33 Cr
JioBlackRock Flexi Cap Fund	NA*	NA*	0.50%	₹3,270.68 Cr
Capitalmind Flexi Cap Fund	NA*	NA*	0.80%	₹451.92 Cr

Table sorted by 3 year return. NA* indicates no data available. The 3 year benchmark is 12.68% and the 5 year benchmark is 11.88%. Motilal Oswal, HSBC, JM, and Quant expense ratios likely reflect regular plan data; verify direct plan pricing before investing. LIC MF expense ratio of 2.18% is confirmed high; avoid unless the direct plan rate is substantially lower.

This article is based on fund data as of 16 August 2026 and is intended for informational purposes only and is not investment advice. Mutual fund investments are subject to market risks and past performance does not guarantee future returns. Some expense ratios in the source data may reflect regular plan variants rather than direct plan pricing. Investors should verify current direct plan expense ratios against the fund's scheme information document and consult a SEBI registered financial advisor before investing.

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