A flexicap mutual fund category, according to regulatory guidelines, is one in which the fund manager can choose to invest across companies of any market capitalisations, be it large, mid or small-cap companies, without restrictions. The fund manager has the complete freedom here unlike other categories, where they need to allocate a fixed amount to a category.
A flexicap scheme needs to have a minimum investment in equity and equity-related instruments of 65% of the total assets of the scheme and the fund manager is free to choose a suitable benchmark.
Flexicap is the largest category in the actively managed equity mutual fund space, with many flagship schemes representing their respective fund houses. As of September 30, 2025, there are 41 schemes in this category, managing a total of ₹5.12 lakh crore.
For investors making an entry into equity mutual funds or moving some money away from deposits, financial planners say flexicap funds are a good starting point.
These all-weather funds can form a core allocation of an individual’s equity portfolio.