HDFC Flexi Cap Fund Is Beating 90% of Mutual Funds in 2025

— Quick Read

~~M(caps)~~any 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.
Its expense ratio (in direct plan) is about 0.7% (as of August 2025) — which is reasonably low in its category.

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. 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 in one published view
In a regular plan, 5-year returns show ~ 28.76% in some reports
According to ET Money, it has “generated highest return among flexi cap funds in last 10 years.

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

Value Research gives it a 5-star rating in its regular plan. In stories, people mention how someone turned monthly SIPs into good sums over 5 years. That agility helps it ride market waves better than funds that stick rigidly to one type.

4. Top Stocks & Changes

The top holdings include big names like HDFC Bank, Axis Bank, Kotak Mahindra, etc. The fund sometimes exits stocks or enters new ones (to adjust) when markets change — this shows active management. (E.g. exiting certain bank or industrial stocks). 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.
Taxes & Expense — The 0.7% expense seems good, but costs do eat returns over time. And capital gains tax rules can affect your net gain.
Large Fund Size Limits Moves — With huge assets under management, sometimes 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.(alert-success)

Value Research gives 5-star rating, indicating it’s liked when risk and return are judged together. (alert-success)

In Reddit discussion, someone says:“It’s a pretty solid fund … combination of Quality & Value … usually maintains a portfolio of 50-60 stocks. (alert-success)

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). Why? Because 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.

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