Bengaluru | May 30, 2025: Amid cautious optimism in the Indian equity market, Flexi Cap funds have emerged as a preferred choice for retail investors. The industry witnessed a sharp rise in net inflows into this category in FY25, which more than tripled to Rs. 49,580 crores from Rs 15,502 crore in FY24, driven by its ability to navigate uncertain market conditions.
“In the current environment of shifting global cues and valuation disparities across market caps, Flexi Cap funds stand out for their built-in adaptability,” said Amey Sathe, Fund Manager at Tata Asset Management. The fund’s strategy allows reallocation between large, mid, and small-cap stocks depending on market dynamics, offering diversification and resilience in volatile conditions.
Among Flexi Cap funds, the Tata Flexi Cap Fund recorded an overall 25% year-on-year growth in inflows in FY25, with investments from Bengaluru growing at a faster pace than the overall category. Investments into the fund from the capital city of Karnataka grew by 36% to Rs. 11.5 crore in FY25, from Rs 8.5 crore a year ago, reflecting growing investor confidence.
Flexi Cap Funds give money managers the flexibility to tilt towards large caps during uncertain times for stability and pivot to mid- and small-caps when higher return potential justifies added risks. This built-in flexibility to reallocate assets across market-caps helps portfolios remain resilient even when specific market segments underperform.
“For retail investors, this dynamic approach offers both diversification and the agility needed to respond to changing market conditions,” Sathe said.
The ability to swiftly adjust asset allocation makes flexi cap funds an increasingly attractive option for retail investors looking for a single, adaptable investment solution in an unpredictable market.
(Source: AMFI, Tata AMC internal data)
Disclaimer: The views expressed in this article are personal in nature and in is no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management Pvt. Ltd. will not be liable in any manner for the consequences of such action taken by you. Please consult your Mutual Fund Distributor before investing. The views expressed in this article may not reflect in the scheme portfolios of Tata Mutual Fund. The view expressed are based on the current market scenario and the same is subject to change. There are no guaranteed or assured returns under any of the scheme of Tata mutual Fund.
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About Tata Asset Management
Established in 1994, Tata Asset Management Private Limited is the investment manager for Tata Mutual Fund. It is one of the oldest mutual funds in India with a unique folio base of over 59 lakhs (latest available as on 30th April 2025). Tata Mutual Fund takes pride in managing the investments of the common man right from childhood to retirement. It offers a wide choice of funds for every need across the entire risk return spectrum. These include equity funds, debt funds, hybrid funds and few others.
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