HDFC Flexi Cap Fund Is Beating 90% of Mutual Funds in 2025 — Let’s Talk About It

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Many investors are surprised to see how HDFC Flexi Cap Fund is quietly beating almost 90% of mutual funds in 2025. While others worry about market ups and downs, this fund keeps delivering steady growth with smart stock selection and long-term focus. If you’re planning a SIP or lump sum investment, this simple guide explains why it’s performing so well, what risks you should know, and whether it’s still worth investing now.

Imagine this — you invested ₹5 lakh in a mutual fund five years ago, and today it’s worth more than ₹10 lakh. That’s not a dream; that’s exactly what investors in the HDFC Flexi Cap Fund have experienced.

In 2025, when many funds are struggling to beat the market, this one continues to deliver quietly, powerfully, and consistently.

Let’s uncover why it’s outperforming nearly 90% of all mutual funds in India, what’s behind its extraordinary performance, and whether it’s still worth putting your money in today.

🌟 A Decade of Trust, A Year of Triumph

Hey! I want to tell you about something interesting I found: HDFC Flexi Cap Fund is doing better than most funds in 2025.

Yes — better than about 90% of its peers. But before you jump in, let’s sit and talk. I’ll show you numbers, good things, risks, and whether it might work for you.

Fund Background & Story

• HDFC Flexi Cap Fund is a flexi-cap equity fund. That means it can invest in large, mid, or small caps, depending on market conditions.
• It was launched in 2013. Its benchmark is Nifty 500 Total Return Index. Moneycontrol
• Its expense ratio (in direct plan) is about 0.7% (as of August 2025) — which is reasonably low in its category. Moneycontrol

Because it has flexibility and good cost structure, many investors keep their eyes on it.

Why It’s Doing So Well in 2025

This is where things get interesting. Let me show you several reasons why this fund is outperforming many others.

1. Smart Portfolio Mix

Looking at the holdings (end of September 2025), about 87.98% of the fund is in equities. Moneycontrol

Among equities:

• Large cap ≈ 60.06%
• Mid cap ≈ 2.21%
• Small cap ≈ 4.27% (The rest might be in debt or other instruments.)

What this tells me: the fund leans toward safer large caps but keeps some exposure to mid & small caps for extra growth.

2. Strong Returns & Track Record

• In the direct plan – growth, in the past 5 years, it has returned ~ 29.73% annualized. Moneycontrol
• In a regular plan, 5-year returns show ~ 28.76%. Moneycontrol
• According to ET Money, it has “generated highest return among flexi cap funds in last 10 years.” ET Money

These returns are not easy to beat. If most funds are returning, say, 15–20%, doing ~25–29% is a big edge.

3. Good Ratings & Trust

1. Value Research gives it a 5-star rating in its regular plan. Value Research Online
2. Stories mention how someone turned monthly SIPs into good sums over 5 years. Value Research Online

4. Top Stocks & Changes

• The top holdings include big names like HDFC Bank, Axis Bank, Kotak Mahindra, etc. Moneycontrol
• The fund sometimes exits or enters new stocks when markets change — this shows active management. The Economic Times

That agility helps it ride market waves better than funds that stick rigidly to one type.

Risks & What You Must Be Careful About

I don’t want to hide the risks — especially since investments are tricky. Here are what you should watch out for:

• Volatility in Short Term — Because of exposure to mid and small caps, in a bad market, the fund could drop more than large-cap funds.
• “Very High Risk” Label — This fund is classified under “Very High Risk” on platforms like Groww. Groww
• Taxes & Expense — The 0.7% expense seems good, but costs do eat returns over time.
• Large Fund Size Limits Moves — With huge AUM, it’s hard to deploy money into very small, high-growth stocks without moving prices.
• Past Performance Doesn’t Guarantee Future — Just because it did well in past years doesn’t mean same will happen. Market regimes change.

Expert Views & What People Say

• ET Money says: It’s among the best in its category, offering consistent returns and protecting against volatility. ET Money
• Value Research gives 5-star rating. Value Research Online
• In Reddit discussion, someone says: “It’s a pretty solid fund … combination of Quality & Value.” Reddit

Summary

So, here’s what I see:

HDFC Flexi Cap Fund is doing better than ~90% of mutual funds in 2025 (especially in its category). It mixes big & small stocks smartly, has good ratings, strong historical returns, and active management.

But it’s not a magic bullet — risks exist. Volatility, taxes, and market shifts can hurt short-term returns. If you decide to invest, see it as a 5-year (or more) journey, not a get-rich-quick plan.

Frequently Asked Questions — HDFC Flexi Cap Fund