CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: For investors looking to participate in the potential growth of companies across the large, mid and small cap markets, a flexi cap fund may be a potentially suitable option. Unlike category-specific funds, a flexi cap fund offers fund managers flexibility to allocate investments based on market conditions and potential opportunities. Flexi cap funds may provide investors with exposure to relative stability from large caps as well as potential growth from mid and small cap sectors.
Before you choose a flexi cap fund to invest in 2025, let’s look at a few factors that may assist you in making an informed decision.
Factors to consider before selecting a flexi cap fund
Portfolio allocation – While large cap companies might provide relative stability, small and large cap companies may often carry risk while potentially delivering higher potential growth. Hence, reviewing a fund’s portfolio structure over time may help you understand its positioning.
Investment philosophy – Another factor to consider is the fund’s investment theme. Some funds focus on cyclical opportunities, while others pay attention to long-term trends. Understanding a fund’s approach may help you decide whether it matches your perspective on growth.
Fund turnover – The expense ratio and turnover of a fund influence its net potential returns. Lower turnovers may be indicative of a long-term focus with reduced transaction costs.
Risk analysis – When evaluating a fund, it may help to look at both its historical performance and how it has adapted to changing market conditions to gauge how risky the investment might be.
Investment horizon – Lastly, considering your own investment horizon may also help in making an investment decision. Flexi cap funds might be more suitable for long-term investors with a horizon of five years or more.
Past performance may or may not be sustained in future.
To get a sense of how wealth may potentially compound over time, you may experiment with a compound interest calculator.
The calculator is an aid, not a prediction tool. It may provide only an indicative picture.
Bajaj Finserv Flexi Cap Fund: Two years of progress
When talking about flexi cap funds present in the market, we may consider Bajaj Finserv Flexi Cap Fund launched in August 2023. The Bajaj Finserv Flexi Cap Fund has recently marked its second anniversary by crossing Rs. 5,410.04 crore in Assets Under Management (AUM) as of August 31, 2025. Since inception, it has delivered a Compound Annual Growth Rate (CAGR) of 19.19%* under the regular plan and 20.91%* under the direct plan.
Source: Internal Data As On 29th August 2025 (Since Inception Annualised Return). *Past performance may or may not be sustained in future.
The megatrend advantage
Bajaj Finserv Flexi Cap Fund follows a megatrend philosophy. Megatrends are long-term structural shifts that shape economies, businesses, and societies for years to come. They go beyond short-term market movements and tend to often drive fundamental changes in how industries operate and potentially grow.
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