Investing in mutual funds is one of the best ways to grow wealth over time. Among various categories, Flexi Cap Mutual Funds offer excellent opportunities as they can invest across large-cap, mid-cap, and small-cap stocks. This flexibility allows fund managers to take advantage of market opportunities and generate higher returns.
If you want to grow ₹1 lakh into ₹4 lakh in just 5 years, you need a CAGR (Compounded Annual Growth Rate) of around 32%.
While no fund guarantees such returns, some top-performing Flexi Cap Mutual Funds have achieved this in the past. Let’s explore the top 10 Flexi Cap funds that have the potential to deliver such high returns.
How to Calculate Returns?
Before looking at the funds, let’s understand the power of compounding with an example: If a fund gives 32% annual returns, your investment of ₹1 lakh grows as follows:
| End of Year 1 | ₹1,32,000 |
| End of Year 2 | ₹1,74,240 |
| End of Year 3 | ₹2,30,005 |
| End of Year 4 | ₹3,03,407 |
| End of Year 5 | ₹4,00,498 |
This shows how consistent high returns can multiply wealth over time.
Top 10 Flexi Cap Mutual Funds for High Growth
1. Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund – A top-performing fund with a 28% 5-year CAGR, investing in quality Indian and global stocks like Google and Amazon, offering diversification and long-term stability with a low expense ratio of 0.75%.
- 5-Year CAGR: 28%
- Fund Size: ₹58,000 Crore
- Expense Ratio: 0.75%
- Why Choose? Focuses on quality stocks and global exposure (like Google, Amazon).
2. HDFC Flexi Cap Fund
HDFC Flexi Cap Fund is one of the most popular and well-managed mutual funds in India, offering a 26% CAGR over the past five years. It primarily invests in large-cap stocks, ensuring stability while also taking selective exposure to mid and small-cap stocks for growth.
The fund is managed by experienced professionals, making it a reliable choice for long-term investors. With an expense ratio of 0.86%, it offers competitive returns while keeping costs under control.
Investors looking for a balanced, growth-oriented fund with strong historical performance can consider this fund for wealth creation over the long term.
- 5-Year CAGR: 26%
- Fund Size: ₹48,000 Crore
- Expense Ratio: 0.86%
- Why Choose? Strong large-cap focus, stable growth.
3. Quant Flexi Cap Fund
Quant Flexi Cap Fund is an aggressively managed mutual fund with a 5-year CAGR of 40%, making it one of the highest-returning Flexi Cap funds. It follows a data-driven and dynamic investment strategy, quickly adjusting allocations between large, mid, and small-cap stocks based on market conditions.
The fund has an expense ratio of 0.69%, which is relatively low for its high returns. Due to its aggressive approach, it carries higher volatility but offers strong growth potential. It is ideal for investors with a high-risk appetite who seek maximum returns over the long term.
- 5-Year CAGR: 40%
- Fund Size: ₹8,500 Crore
- Expense Ratio: 0.69%
- Why Choose? Aggressive investing style, high returns.
4. UTI Flexi Cap Fund
UTI Flexi Cap Fund offers a 5-year CAGR of 22%, investing across large, mid, and small-cap stocks for balanced growth. With a fund size of ₹26,000 crore and an expense ratio of 0.98%, it provides stability and diversification, making it ideal for long-term investors seeking moderate risk and steady returns.
- 5-Year CAGR: 22%
- Fund Size: ₹26,000 Crore
- Expense Ratio: 0.98%
- Why Choose? Balanced portfolio across large and mid-caps.
5. ICICI Prudential Flexi Cap Fund
ICICI Prudential Flexi Cap Fund delivers a 5-year CAGR of 23%, balancing investments across large, mid, and small-cap stocks. With a fund size of ₹22,500 crore and an expense ratio of 1.01%, it follows a research-driven approach, making it suitable for investors seeking consistent long-term growth with moderate risk.
- 5-Year CAGR: 23%
- Fund Size: ₹22,500 Crore
- Expense Ratio: 1.01%
- Why Choose? Strong research-backed investment strategy.
6. Kotak Flexi Cap Fund
Kotak Flexi Cap Fund has delivered a 5-year CAGR of 21%, focusing on a diversified mix of large, mid, and small-cap stocks. With a fund size of ₹45,000 crore and an expense ratio of 0.78%, it provides stability and steady growth, making it a good choice for conservative investors seeking moderate risk.
- 5-Year CAGR: 21%
- Fund Size: ₹45,000 Crore
- Expense Ratio: 0.78%
- Why Choose? One of the most stable Flexi Cap funds.
7. Nippon India Flexi Cap Fund
Nippon India Flexi Cap Fund offers a 5-year CAGR of 25%, investing across large, mid, and small-cap stocks for growth and diversification. With a fund size of ₹15,200 crore and an expense ratio of 0.90%, it is a strong choice for investors seeking a balanced, well-diversified portfolio with moderate risk.
- 5-Year CAGR: 25%
- Fund Size: ₹15,200 Crore
- Expense Ratio: 0.90%
- Why Choose? Good mix of large, mid, and small caps.
8. SBI Flexi Cap Fund
SBI Flexi Cap Fund provides a 5-year CAGR of 24%, investing in a mix of large, mid, and small-cap stocks. With a fund size of ₹70,000 crore and an expense ratio of 1.10%, it is one of the most trusted and stable funds, offering good growth potential with moderate risk for long-term investors.
- 5-Year CAGR: 24%
- Fund Size: ₹70,000 Crore
- Expense Ratio: 1.10%
- Why Choose? One of the biggest and most trusted funds.
9. Edelweiss Flexi Cap Fund
Edelweiss Flexi Cap Fund offers a 5-year CAGR of 23%, focusing on actively managed investments across large, mid, and small-cap stocks. With a fund size of ₹7,000 crore and an expense ratio of 0.95%, it aims for strong performance through stock selection, making it suitable for investors seeking consistent growth and moderate risk.
- 5-Year CAGR: 23%
- Fund Size: ₹7,000 Crore
- Expense Ratio: 0.95%
- Why Choose? Strong performance with active stock picking.
10. Franklin India Flexi Cap Fund
Franklin India Flexi Cap Fund has delivered a 5-year CAGR of 22%, with a diversified approach across large, mid, and small-cap stocks. With a fund size of ₹5,600 crore and an expense ratio of 1.12%, it offers steady growth and stability, making it a solid choice for long-term investors seeking moderate risk.
- 5-Year CAGR: 22%
- Fund Size: ₹5,600 Crore
- Expense Ratio: 1.12%
- Why Choose? Good balance of growth and stability.
Pros and Cons of Investing in Flexi Cap Funds
✅ Pros
✔ High Growth Potential – Fund managers can shift between large, mid, and small caps to maximize returns.
✔ Diversification – Exposure to different market segments reduces risk.
✔ Flexibility – No restriction on market cap allocation, allowing dynamic investment strategies.
❌ Cons
✘ Higher Risk – Mid and small caps can be volatile.
✘ Fund Manager Dependency – Performance depends on how well the manager picks stocks.
✘ Higher Expense Ratio – Compared to index funds, the costs can be slightly higher.
Who Should Invest in Flexi Cap Funds?
- Investors looking for high returns over the long term.
- Those who can handle moderate to high risk.
- People willing to stay invested for at least 5+ years.
If you are a conservative investor, you may want to invest in a mix of Flexi Cap and large-cap funds for stability.
Lump Sum vs. SIP Investment
If you want to turn ₹1 lakh into ₹4 lakh, you can invest either:
- Lump Sum – One-time ₹1 lakh investment.
- SIP – Monthly investments of ₹7,500 – ₹9,000 for 5 years.
Example:
- If a Flexi Cap fund gives 25% CAGR, a ₹7,500 monthly SIP can grow to ₹4 lakh in 5 years.
- This method reduces risk as you invest over time.
Final Thoughts
Flexi Cap mutual funds are an excellent choice for investors aiming for high growth in 5 years. While past performance doesn’t guarantee future returns, these funds have consistently delivered strong results.
If you are comfortable with some level of risk and have a long-term perspective, investing in top-performing Flexi Cap funds can help you achieve significant wealth creation.
Would you prefer a one-time investment or a SIP approach? Let us know in the comments below! 🚀
