Look for consistency of return, resilience during downturn in fund

Flexicap funds attracted net inflows of ₹10,054.12 crore in March 2026, their highest tally in the past 12 months. But retail investors should resist chasing the category on momentum alone. The more important question is whether it suits their investment needs.

- SANJAY KUMAR SINGH & KARTHIK JEROME

Flexicap funds attracted net inflows of ₹10,054.12 crore in March 2026, their highest tally in the past 12 months. But retail investors should resist chasing the category on momentum alone. The more important question is whether it suits their investment needs.

Drivers of high inflows

Several factors contributed to the high inflows in March. “Its relatively stronger performance compared with some other categories supported flows,” says D P Singh, joint chief executive officer (CEO), SBI Mutual Fund. He adds that the category has the largest systematic investment plan (SIP) book.

“Many retail investors appear to have bought the dip to average out purchase costs,” says Raj Mehta, executive vice president and fund manager, PPFAS Mutual Fund.

What makes them popular

The category's appeal rests on the flexibility it gives fund managers to invest across market caps. “This structure offers greater leeway to fund managers to shift from one market cap to another, making flexicap funds especially dynamic within the diversified fund universe,” says Singh.