Flexicap mutual funds have emerged as a flexible and growth-oriented investment option for investors looking for diversification across market capitalizations. These funds offer the agility to invest across large-cap, mid-cap, and small-cap stocks based on market conditions. In this article, we’ll explore the 5 Best Flexicap Mutual Funds to Invest in 2025 based on 3-year and 5-year rolling returns, ensuring a data-backed and performance-consistent approach.
What Are Rolling Returns in Mutual Funds?
Rolling returns provide a clearer picture of a fund’s consistency over time, unlike point-to-point returns that can be skewed by short-term volatility. For example, a 3-year rolling return considers the fund’s returns for every possible 3-year period over a given duration. This helps us understand how the fund performed across different market cycles and not just in isolated periods.
Earlier we analysed 5 Best Balanced Advantage Mutual Funds for 2025 based on Rolling Returns.
How We Filtered the Flexicap Mutual Funds?
To shortlist the top flexicap mutual funds for 2025, we followed a systematic and data-centric approach:
- Considered direct plans with growth options.
- Analyzed rolling return data from 1-Jan-2013 to 21-Jul-2025. Wherever the fund was launched at later date, the actual date of launched for others too.
- Focused on 3-year and 5-year rolling returns to measure consistency.
- Looked for funds with lower downside risks and minimal negative return periods.
- Gave preference to funds with higher percentage of times delivering >15% returns.
- Data is as of 22-Jul-2025.
Top 5 Flexicap Mutual Funds Based on Rolling Returns
1) Quant Flexi Cap Fund
2) Parag Parikh Flexi Cap Fund
3) JM Flexi Cap Fund
4) DSP Flexi Cap Fund
5) Franklin India Flexi Cap Fund
Investors can also check 8 Morningstar 5 Star Rated Mutual Funds to invest in 2025.
Deep Dive into 5 Flexicap Mutual Funds Based on Rolling Returns
Lets deep dive into these funds.
#1 – Quant Flexi Cap Fund
- 3-Year Rolling Return: Average 22.41%, Maximum 53.16%, Negative only 3.15% of times
- 5-Year Rolling Return: Average 21.34%, Maximum 41.96%, Zero negative returns
- Why it stands out: A consistent outlier with the highest proportion of rolling returns above 20%. However, investors should note that the fund has seen some moderation in performance in the last 1 year, likely due to sectoral shifts and global volatility. Still, it remains one of the top long-term alpha generators.
#2 – Parag Parikh Flexi Cap Fund
- 3-Year Rolling Return: Average 19.08%, Minimum return was positive (0.74%)
- 5-Year Rolling Return: Average 19.22%, Maximum 33.95%, Zero negative returns
- Why it stands out: International diversification, strong downside protection, and consistent returns make this a strong long-term bet.
This mutual fund is part of 12 Best Mutual Funds as per Google Gemini AI to invvest in 2025.
#3 – JM Flexi Cap Fund
- 3-Year Rolling Return: Average 18.84%, Maximum 34.22%, Negative only 1.64% of times
- 5-Year Rolling Return: Average 17.41%, Minimum 2.70%, Zero negative returns
- Why it stands out: Under the radar performer with impressive rolling return consistency. That said, the fund has lagged slightly in recent times, and investors should monitor its short-term trends before making lump sum allocations.
#4 – DSP Flexi Cap Fund
- 3-Year Rolling Return: Average 15.74%, Maximum 29.30%, Negative only 0.45% of times
- 5-Year Rolling Return: Average 16.50%, Minimum 5.44%, Zero negative returns
- Why it stands out: Solid fund house reputation and stable performance with minimal downside.
#5 – Franklin India Flexi Cap Fund
- 3-Year Rolling Return: Average 16.46%, Maximum 36.83%, Negative 4.48% of times
- 5-Year Rolling Return: Average 15.24%, Minimum -1.88%
- Why it stands out: Long-term consistent player with decent upside potential and respectable downside control.
If you are looking to invest through SIP, you can check our latest article on for Top 10 Mutual Funds with Highest SIP Returns in last 5 years.
Annualised Returns Comparison – Top 5 Flexicap Funds
| Fund Name | 3 Yr Return (%) | 5 Yr Return (%) | 10 Yr Return (%) |
|---|---|---|---|
| Quant Flexi Cap Fund | 22.3 | 31.6 | 19.1 |
| Parag Parikh Flexi Cap Fund | 23.4 | 25.2 | 18.1 |
| JM Flexi Cap Fund | 26.1 | 27.0 | 16.7 |
| DSP Flexi Cap Fund | 20.8 | 22.2 | 14.7 |
| Franklin India Flexi Cap Fund | 22.3 | 26.1 | 14.6 |
Recent 1-Year Trends – What Investors Should Know
While rolling returns offer a longer-term view, it is equally important to consider how funds have performed recently.
- Quant Flexi Cap Fund has experienced a dip in 1-year returns due to sectoral rotation and global uncertainties. Additionally, SEBI has initiated a front-running investigation involving some fund managers at Quant Mutual Fund. Although the fund house has denied wrongdoing, this has raised concerns among investors. It is advisable to keep an eye on regulatory developments before taking large exposure.
- JM Flexi Cap Fund has also underperformed in the past 1 year relative to peers, raising some short-term caution.
Investors are advised to take a blended view — acknowledging short-term movements while focusing on long-term consistency for SIPs and goal-based investing.
Benefits of Investing in Flexicap Mutual Funds
- Diversification: Exposure to all market caps ensures risk is spread.
- Dynamic Allocation: Fund managers have flexibility to shift allocation based on market trends.
- Long-Term Growth: Potential to outperform pure large-cap funds over the long run.
- Volatility Buffer: A mix of caps helps smoothen extreme fluctuations.
Risk Factors to Consider
- Market Risk: Being equity-oriented, these funds are subject to market swings.
- Managerial Decisions: Performance can be impacted by allocation decisions of the fund manager.
- International Exposure: Some funds (like Parag Parikh) invest globally, which adds currency risk. In case you are looking for global funds, you can check our article Best International Mutual Funds to invest in 2025.
- Mid and Small Cap Exposure: May introduce volatility during bearish cycles.
Conclusion
Flexicap mutual funds offer a flexible, well-diversified equity solution for long-term investors. Based on rolling return data, the above 5 funds have proven to be consistent performers across market cycles. Investors looking for wealth creation in 2025 and beyond should consider these funds, while aligning them with their financial goals and risk profile.
Always consult a financial advisor before making investment decisions.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. The above analysis is for informational purposes only and not investment advice.
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what about HDFC flexi cap Direct growth fund?