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HDFC Flexi Cap Fund Surpasses INR 1 Lakh Crore AUM

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  Published in Stocks and Investing on Sunday, February 15th 2026 at 2:21 GMT by moneycontrol.com
      Locales: Maharashtra, INDIA

New Delhi, February 15, 2026 - HDFC Flexi Cap Fund, a flagship offering from HDFC Asset Management Company (AMC), has solidified its position as a market leader by surpassing the INR1 lakh crore (approximately $12 billion USD) in Assets Under Management (AUM) milestone. This achievement, first reached in early 2024 and consistently maintained, marks a significant moment for the Indian mutual fund industry, as HDFC Flexi Cap Fund remains the only flexi-cap fund in India to consistently maintain an AUM exceeding this benchmark. As of January 31, 2026, the fund's AUM stands at INR1,08,523 crore, demonstrating continued investor interest and robust performance.

The initial breakthrough in January 2024 - reaching INR1,01,774 crore - signaled a growing trend towards flexible investment strategies. But the sustained growth since then, despite volatile market conditions globally and domestically, is a testament to the fund's strategy and the confidence it inspires in investors. Currently co-managed by Dhaval Ekbote and Suryanarayana Malladi, the fund has consistently outperformed its benchmark, delivering an average annual return of 18.7% over the past five years, significantly higher than the category average of 15.2%.

The Appeal of Flexi-Cap Funds in a Changing Landscape

Flexi-cap funds have gained prominence in recent years due to their inherent adaptability. Unlike funds restricted to specific market capitalizations (large-cap, mid-cap, or small-cap), flexi-cap funds enjoy complete freedom to allocate assets across the entire market spectrum. This agility is particularly valuable in dynamic economic environments where sector rotations and market leadership can shift rapidly.

"The Indian market is becoming increasingly nuanced," explains Priya Sharma, a financial analyst at Quantum Investments. "We've seen periods of large-cap dominance, followed by surges in mid and small-cap stocks. A flexi-cap fund, with its ability to dynamically reallocate assets, is well-positioned to capture opportunities across the board and mitigate risks associated with concentrating solely on one segment."

This flexibility allows fund managers to capitalize on emerging growth stories in smaller companies while simultaneously providing the stability of established large-cap stocks. It's a strategy that appeals to a broad range of investors, from those seeking long-term wealth creation to those prioritizing risk-adjusted returns.

HDFC Flexi Cap Fund: A Performance Analysis

The HDFC Flexi Cap Fund's success isn't solely attributable to its flexible mandate. The fund's investment philosophy focuses on identifying fundamentally strong companies with sustainable growth potential. The managers prioritize businesses with robust cash flows, strong management teams, and a competitive edge in their respective industries.

Recent portfolio analysis reveals a significant allocation to the financial services and technology sectors, reflecting the fund's optimistic outlook on these growth areas. However, it also maintains a diversified exposure to consumer staples and healthcare, providing a degree of resilience against cyclical downturns. Data from the Association of Mutual Funds in India (AMFI) shows the fund consistently holds a larger proportion of its portfolio in mid-cap stocks compared to its peers, indicating a willingness to take on slightly more risk in pursuit of higher returns.

Over the past year, the fund has generated a return of 25.12% (as of February 15, 2026), beating the Nifty 50 benchmark by a considerable margin. Its three-year and five-year returns stand at 23.87% and 18.7% respectively, consistently placing it among the top performers in the flexi-cap category.

Implications for the Indian Asset Management Industry

The HDFC Flexi Cap Fund's milestone is expected to further fuel the growth of flexi-cap funds in India. Other AMCs are likely to launch similar offerings or enhance their existing flexi-cap strategies to compete for investor capital. This increased competition will ultimately benefit investors by driving innovation and potentially lowering fees.

"We are seeing a clear shift in investor preferences towards more dynamic and flexible investment approaches," says Rajan Patel, CEO of another leading AMC. "The success of HDFC Flexi Cap Fund validates this trend and encourages us to explore similar strategies."

The consistent AUM growth also highlights the increasing financial literacy among Indian investors and their willingness to embrace more sophisticated investment products. As the Indian economy continues to grow and mature, demand for flexi-cap funds is expected to remain strong, making them a crucial component of a well-diversified investment portfolio.