Synopsis: Flexi-cap funds that are backed by banks have delivered up to 23% CAGR in the last three years by investing in large-cap, mid-cap, and small-cap funds. They have the support of reputed institutions, which provide diversification, flexibility, and management with a research focus.
Flexi-cap funds are mutual funds that invest in large-cap, mid-cap, and small-cap stocks with the freedom to reallocate the investments according to the market conditions. Being supported by reputed institutions, they have the advantage of strong research, disciplined management, and diversified portfolio strategies. In the long run, this blending renders them appropriate to long-term investors that would like to have balanced growth and controlled risk.
1. Bank of India Flexi Cap Fund
- NAV: ₹36.33
- AUM: ₹2,186.49 Cr
- Expense Ratio: 0.58%
- Exit Load: 1% (within 3 months)
Performance Snapshot
- 3-Year CAGR: 23.4%
- 3-Year Absolute Return: 84.3%
Category Comparison (3-Year)
- Fund 3-Year CAGR: 23.4%
- Equity Flexi-Cap Category Average: 16.0%
- Outperformance: +7.4 percentage points
2. HDFC Flexi Cap Fund
- NAV: ₹2,079.57
- AUM: ₹1,00,455.32 Cr
- Expense Ratio: 0.67%
- Exit Load: 1% (within 1 year)
Performance Snapshot
- 3-Year CAGR: 20.6%
- 3-Year Absolute Return: 73.6%
Category Comparison (3-Year)
- Fund 3-Year CAGR: 20.6%
- Equity Flexi-Cap Category Average: 16.0%
- Outperformance: +4.6 percentage points
3. ICICI Prudential Flexi Cap Fund
- NAV: ₹18.73
- AUM: ₹20,437.47 Cr
- Expense Ratio: 0.79%
- Exit Load: 1% (within 1 year)
Performance Snapshot
- 3-Year CAGR: 18.6%
- 3-Year Absolute Return: 65.2%
Category Comparison (3-Year)
- Fund 3-Year CAGR: 18.6%
- Equity Flexi-Cap Category Average: 16.0%
- Outperformance: +2.6 percentage points
4. HSBC Flexi Cap Fund
- NAV: ₹225.74
- AUM: ₹5,278.84 Cr
- Expense Ratio: 1.21%
- Exit Load: 1% (within 1 year)
Performance Snapshot
- 3-Year CAGR: 18.0%
- 3-Year Absolute Return: 63.6%
Category Comparison (3-Year)
- Fund 3-Year CAGR: 18.0%
- Equity Flexi-Cap Category Average: 16.0%
- Outperformance: +2 percentage points
5. Kotak Flexi Cap Fund
- NAV: ₹90.68
- AUM: ₹56,853.23 Cr
- Expense Ratio: 0.59%
- Exit Load: 1% (within 1 year)
Performance Snapshot
- 3-Year CAGR: 16.5%
- 3-Year Absolute Return: 57.1%
Category Comparison (3-Year)
- Fund 3-Year CAGR: 16.5%
- Equity Flexi-Cap Category Average: 16.0%
- Outperformance: +0.5 percentage points
Also Read: Top 5 Banking Sector Mutual Funds Delivering Up to 21% Returns in the Last 3 Years
Comparison Table
| Fund Name | 3Y CAGR | Expense Ratio | AUM (₹ Cr) | Outperformance | Best For |
| Bank of India Flexi Cap Fund | 23.4% | 0.58% | ₹2,186.49 | +7.4% | Aggressive Growth |
| HDFC Flexi Cap Fund | 20.6% | 0.67% | ₹1,00,455.32 | +4.6% | Overall Growth |
| ICICI Prudential Flexicap Fund | 18.6% | 0.79% | ₹20,437.47 | +2.6% | Stable Performance |
| HSBC Flexi Cap Fund | 18.0% | 1.21% | ₹5,278.84 | +2% | Long-Term Reliability |
| Kotak Flexicap Fund | 16.5% | 0.59% | ₹56,853.23 | +0.5% | Moderate Growth |
Note: The NAV, AUM, expense ratio, and the ratios mentioned for the funds are sourced from Groww as of 27th March 2026.
Risks You Must Know
Flexi-cap funds face market volatility because their investments include equities, which create short-term return fluctuations. Their mid-cap and small-cap stock investments can increase risk during market declines. The performance depends on fund manager decisions because their choices determine the optimal strategy to follow.
The higher expense ratio leads to a minor reduction in total returns throughout the investment period. Investors must understand that previous performance does not ensure future results because market conditions will affect return outcomes.
Who Should Invest
Investors with a long-term horizon, who are comfortable with moderate to high risk, can consider flexi-cap funds as a suitable option. The funds provide perfect solutions for investors who want to invest their money in one fund that covers all three equity segments of large-cap, mid-cap, and small-cap stocks.
SIP investors aiming to benefit from different market cycles and individuals seeking the reliability of bank-backed funds along with the potential for long-term growth may also find these funds well aligned with their investment objectives.
Conclusion
Bank-backed flexi-cap funds provide investors with three essential benefits through their investment framework. Investors should maintain their investment strategy according to their risk profile because past results have shown strong performance.
Written by Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
