Record ₹10,000+ cr. Flows Into Flexicap Mutual Funds in December — Should Investors Add or Rebalance?

In December 2025, flexicap mutual funds in India attracted a record-high net inflow of approximately ₹10,019 crore, marking the largest monthly contribution ever for this category, according to data from the Association of Mutual Funds in India (AMFI).

Why Flexicap Funds Are Trending

• Flexibility across market caps: Unlike traditional large-cap or mid-cap schemes, flexicap funds can dynamically allocate across large, mid and small-cap stocks, giving fund managers the ability to adjust exposure based on market valuations and opportunities.
• Investor caution amid volatility: With uneven returns and continuing uncertainty in different segments of the equity market, many investors are looking for diversified, flexible equity exposure rather than concentrated bets in a single market-cap bucket.
• Historical performance: These funds have shown relatively consistent performance across market cycles, helping them emerge as a core equity holding for many investors.

What Experts Suggest
Although record inflows highlight strong investor interest, market specialists caution against chasing trends solely on recent data:

• Stick to long-term allocation: Flexicap funds are suitable as core components of a long-term equity portfolio, but investors should maintain allocations based on their risk profile and investment horizon, not just recent inflows.
• SIP approach recommended: For first-time or long-term investors, systematic investment plans (SIPs) remain a prudent way to build exposure gradually rather than making large one-time lumpsum investments.
• Performance depends on discipline: Future returns will reflect fund manager decisions, asset allocation across caps, and stock selection quality, rather than the inflow trend itself.

Category Trends
Flexicap funds were the top inflow category among equity schemes in 2025, receiving significant investor attention compared with thematic or sectoral funds, which saw less traction amid market uncertainty.

Bottom Line:
The December inflows underscore growing confidence in the flexicap category’s diversified mandate, but investors are advised to maintain asset allocation discipline and avoid over-allocating based on short-term trends alone. A measured approach—particularly through SIPs and long-term holding—can help align flexicap fund investments with broader financial goals.