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Among all mutual fund categories, Flexi Cap Funds have become one of the most popular choices for investors. Because flexi cap funds allow fund managers to invest freely across large-cap, mid-cap, and small-cap stocks, giving them the flexibility to tap the best opportunities in the market.
This popularity is clear from the numbers. Over the past year, Flexi Cap category attracted inflows of ₹1.01 lakh crore, the highest among all diversified equity fund categories.
Within this space, two funds stand out HDFC Flexi Cap Fund and Parag Parikh Flexi Cap Fund. Both are well-known for their strong track record and loyal investor base, though they’ve taken different routes to success.
In July 2022, Roshi Jain took over as fund manager of HDFC Flexi Cap Fund, succeeding veteran Prashant Jain. Parag Parikh Flexi Cap Fund, managed by Rajeev Thakkar since launch. So, which one is the best Flexi Cap fund in 2026 between HDFC Flexi Cap vs Parag Parikh Flexi Cap. Let’s find out.
What are Flexi-Cap Funds?
Before we compare HDFC Flexi Cap Fund and Parag Parikh Flexi Cap Fund, let’s understand what are Flexi Cap Funds.
Flexi Cap Funds are a type of equity mutual fund that can invest in large-cap, mid-cap, and small-cap stocks without any fixed limits. As the name suggests, they offer flexibility, allowing fund managers to decide where to invest depending on market conditions.
This means the fund manager can shift the portfolio mix, for example, increasing exposure to large-cap stocks when markets are volatile or focusing on mid and small caps when growth opportunities are stronger.
As per SEBI rules, every Flexi Cap Fund must invest at least 65% of its portfolio in equities and equity-related instruments.
These funds are ideal for investors seeking long-term growth and diversification, as they spread investments across different sectors, industries, and market sizes, reducing the risk of depending on a single segment.
Journey of HDFC Flexi Cap Direct Plan and Parag Parikh Flexi Cap Direct Plan
HDFC Flexi Cap Direct Plan–Growth was launched on 1 January 2013, and manages assets worth ₹85,560 crore as of September 30, 2025. HDFC Flexi Cap Fund is the second-largest fund by AUM in the flexi cap category, after Parag Parikh Flexi Cap Fund.
On the other hand, Parag Parikh Flexi Cap Fund, launched on 24 May 2013, holds a unique position in the Indian mutual fund space. It is not only the largest flexi cap fund in the country but also the largest actively managed equity mutual fund across all categories, with assets under management exceeding ₹1 lakh crore.
Okay, let’s begin the actual face-off between India’s two largest flexi cap mutual funds
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Investment Objectives & Strategies
First, understand the Investment objectives & strategies of both the funds.
Parag Parikh Flexi Cap Fund is a diversified equity mutual fund that invests in companies across various sectors, sizes, and countries. At least 65% of its assets are invested in equities.
The fund mainly focuses on large companies with low debt, high return on equity (ROE), and good dividend payouts. While this strategy offers stability, it may underperform during strong bull markets. We’ll talk about this later, along with data.
To enhance diversification and reduce risk, Parag Parikh Flexi Cap also invests a small (11.69% as of 30 Sep 2025 ) portion in foreign stocks, giving investors exposure to global companies.
HDFC Flexi Cap Fund aims to create long-term wealth by investing mainly in Indian stocks across large-cap, mid-cap, and small-cap companies. The fund focuses on strong, well-managed businesses that can perform well even in tough market conditions.
It maintains a diversified portfolio across sectors to reduce risk and follows a disciplined, long-term investment approach with low portfolio turnover. Unlike Parag Parikh Flexi Cap, this fund invests only in the Indian stock market and does not take exposure to foreign equities.
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Fund Manager
Parag Parikh Flexi Cap Fund is managed by a team of seven fund managers, listed below.
- Mr. Rajeev Thakkar: Chief Investment Officer & Director (Since inception)
- Mr. Raunak Onkar: Fund Manager for Overseas Securities (Since inception)
- Mr. Raj Mehta: Executive Vice President & Fund Manager – Equity (Since September 1, 2025)
- Mr. Rukun Tarachandani: Executive Vice President & Fund Manager – Equity (Since May 16, 2022)
- Mr. Tejas Soman: Chief Investment Officer – Debt (Since September 1, 2025)
- Ms. Mansi Kariya: Associate Vice President & Fund Manager – Debt (Since December 22, 2023)
- Ms. Aishwarya Dhar: Senior Manager & Fund Manager – Debt (Since September 1, 2025)
Now, let’s talk about HDFC Flexi Cap Fund manager.
HDFC Flexi Cap Fund is managed by Ms. Roshi Jain, who took charge on July 29, 2022. Before her, the fund was managed for many years by Mr. Prashant Jain, one of India’s most respected fund managers, who retired from HDFC AMC in August 2022 after a remarkable 28-year career.
Ms. Jain has over 19 years of experience in research and fund management. Before joining HDFC AMC in December 2021, she worked as Vice President and Portfolio Manager at Franklin Templeton India AMC. She holds a PGDM from IIM Ahmedabad, is a Chartered Accountant, and a CFA Charterholder.
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Historic CAGR Returns
| Period (CAGR %) | HDFC Flexi Cap Fund | Parag Parikh Flexi Cap Fund | Category Average | NIFTY 500 – TRI |
|---|---|---|---|---|
| 1-Year | 11.2 | 9.8 | 3.92 | 5.36 |
| 3-Year | 22.92 | 22.01 | 16.42 | 16.51 |
| 5-Year | 29.55 | 23.67 | 20.15 | 20.92 |
| 10-Year | 17.3 | 18.48 | 14.19 | 14.69 |
| Since Inception | 17.17 | 19.75 | 14.35 | 12.51 |
Source: Advisor Khoj, as of 3 Nov 2025
This clearly shows that both funds have delivered strong CAGR returns and outperformed their respective categories and benchmarks.
CAGR return vs Rolling Return
CAGR returns are important, but investors must also look at rolling returns of a mutual fund. Rolling returns show the consistency of performance over different time periods.
A 10-year CAGR may look impressive, but it doesn’t reveal how the fund performed in each year. Did the returns come steadily over time, or were they concentrated in just a few good years? Rolling returns help answer this, giving a clearer picture of how consistently the fund has delivered returns throughout the period.
Both HDFC Flexi Cap Fund and Parag Parikh Flexi Cap Fund have shown consistent performance over time. You can find all this information in the respective mutual fund fact sheets
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Portfolio & Investment Styles
| Asset Class | Parag Parikh Flexi Cap Fund (Direct Plan) | HDFC Flexi Cap Fund (Direct Plan) |
|---|---|---|
| Equity | 74.81% | 87.98% |
| Debt | 22.45% | 0.60% |
| Real Estate | 0.66% | 2.82% |
| Cash & Cash Equivalents | 2.08% | 8.60% |
| Market Cap Segment | Parag Parikh Flexi Cap Fund (Direct Plan) | HDFC Flexi Cap Fund (Direct Plan) |
|---|---|---|
| Giant | 82.20% | 75.20% |
| Large | 12.20% | 13.01% |
| Mid | 4.14% | 8.52% |
| Small | 1.46% | 3.26% |
Source: Value Research
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Portfolio Concentration Comparison
| Concentration Metric | Parag Parikh Flexi Cap Fund (Direct Plan) | HDFC Flexi Cap Fund (Direct Plan) |
|---|---|---|
| Number of Stocks | 89 | 50 |
| Top 10 Stocks | 48.58% | 50.83% |
| Top 5 Stocks | 29.54% | 33.24% |
| Top 3 Sectors | 53.52% | 65.08% |
Source: Value Research
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Sector-Wise Holdings Comparison
| Sector | Parag Parikh Flexi Cap Fund (%) | HDFC Flexi Cap Fund (%) |
|---|---|---|
| Financial | 27.17 | 39 |
| Technology | 16.05 | 8.6 |
| Consumer Discretionary | 10.3 | 17.35 |
| Energy & Utilities | 5.99 | 3.51 |
| Materials | 5.7 | 6.01 |
| Consumer Staples | 5.39 | 0.67 |
| Healthcare | 4.02 | 8.73 |
| Industrials | 0.17 | 4.11 |
Source: Value Research
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Top Holding
| Company Name | HDFC’s % of Holding | Company Name | Parag Parikh’s % of Holding |
|---|---|---|---|
| ICICI Bank | 9.14 | HDFC Bank | 8.08 |
| HDFC Bank | 8.34 | Power Grid | 5.99 |
| Axis Bank | 7.14 | Bajaj Holdings | 5.44 |
| SBI | 4.38 | Coal India | 5.28 |
| Kotak Bank | 4.24 | ICICI Bank | 4.75 |
| SBI Life Insurance | 4.19 | ITC | 4.55 |
| Maruti Suzuki | 4.12 | Kotak Bank | 4.03 |
| Cipla | 3.69 | Maruti Suzuki | 3.61 |
| HCL Technologies | 2.87 | Mahindra & Mahindra | 3.53 |
| Hyundai Motor India | 2.72 | Alphabet Inc. (GOOGL) | 3.41 |
| Eicher Motors | 2.62 | Bharti Airtel | 3.32 |
| Bharti Airtel | 2.41 | Meta Platforms Inc. (FB) | 3.22 |
| Power Grid | 2.23 | Axis Bank | 3.14 |
| Bajaj Auto | 2.03 | Microsoft (MSFT) | 2.82 |
| Piramal Pharma | 2.01 | Amazon.com (AMZN) | 2.24 |
| JSW Steel | 1.9 | HCL Technologies | 2.16 |
| Tata Steel | 1.62 | Cipla | 1.25 |
| Bank of Baroda | 1.57 | Zydus Lifesciences | 1.24 |
| Bosch | 1.36 | Dr. Reddy’s Laboratories | 1.24 |
| Infosys | 1.35 | Infosys | 1.12 |
| Interglobe Aviation | 1.31 | IEX | 0.94 |
| ONGC | 1.28 | Zydus Wellness | 0.84 |
| Larsen & Toubro | 1.01 | Balkrishna Industries | 0.8 |
| FSN E-Commerce | 0.98 | Reliance Industries | 0.71 |
| Lupin | 0.94 | MCX | 0.52 |
Source: Value Research, as on 30-Sep-2025
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Overseas Investment
Along with investments in Indian equities, Parag Parikh Flexi Cap Fund also invests in foreign stocks, providing an extra layer of diversification. In contrast, HDFC Flexi Cap Fund does not invest in overseas equities. Here are the overseas investments of Parag Parikh Flexi Cap Fund:
| Company Name | Sector | Allocation (%) |
|---|---|---|
| Alphabet Inc A | Computer Software | 3.41% |
| Meta Platforms Registered Shares A | Computer Software | 3.22% |
| Microsoft Corp | Computer Software | 2.82% |
| Amazon.com Inc | Catalog/Specialty Distribution | 2.24% |
| Total | 11.69% |
Source: Factsheet, as on 30-Sep-2025
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Risk Metrics
| Metric | HDFC Flexi Cap Fund (Direct) | Parag Parikh Flexi Cap Fund (Direct) | Category Average | Benchmark (BSE 500 TRI) |
|---|---|---|---|---|
| Mean Return (%) | 21.36 | 20.42 | 16.93 | 15.95 |
| Standard Deviation (%) | 10.59 | 8.4 | 12.94 | 13.14 |
| Sharpe Ratio (%) | 1.42 | 1.68 | 0.84 | 0.74 |
| Sortino Ratio (%) | 2.3 | 2.4 | 1.24 | 1.08 |
| Beta (%) | 0.78 | 0.56 | 0.92 | — |
| Alpha (%) | 7.51 | 8.71 | 1.73 | — |
Source: Value Research
By now, we’ve seen the returns of both funds. However, returns alone don’t tell the full story. To truly judge performance, we must also consider risk-adjusted returns, which show how efficiently a fund has generated returns relative to the risk it took.
So, let’s understand these ratios and answer the most asked question:
How to Analyze the Mutual Funds?
- Standard Deviation
Standard deviation shows how much a fund’s returns fluctuate from its average return — in short, it measures volatility. A higher standard deviation means higher volatility.
Parag Parikh Flexi Cap Fund has a standard deviation of 8.40, lowest among its peers, indicating more stability during market swings. HDFC Flexi Cap Fund’s standard deviation is 10.59, which is lower than most peers but higher than Parag Parikh’s, making it slightly more volatile.
- Beta
Beta measures the risk of a fund compared to its benchmark. If a fund’s beta is less than 1,
it is generally considered less risky than the market. Beta of Parag Parikh Flexi Cap Fund is 0.56, and beta of HDFC Flexi Cap Fund is 0.78, both are lower than the category average of 0.92. This means that both funds are less risky compared to the market, but Parag Parikh Flexi Cap Fund has the lowest beta in the flexi cap fund category.
- Sharpe Ratio
Sharpe ratio measures the risk-adjusted returns of an equity fund. It indicates how much extra return the fund generated for each unit of risk taken.
Sharpe ratio of Parag Parikh Flexi Cap Fund is 1.68, indicating the fund generated 1.68 times more returns for each unit of risk taken. On the other hand, Sharpe ratio of HDFC Flexi Cap Fund is 1.42, indicating fund generated 1.42 times more returns for each unit of risk taken. The higher the Sharpe ratio, the better the risk-adjusted returns of the fund.
- Alpha
Alpha shows how much extra return a fund earns over its benchmark, reflecting the fund manager’s skill in picking stocks. A positive alpha means the fund beat the market. If a fund has an alpha of 8%, it means the fund delivered 8% higher returns than its benchmark index during the same period.
HDFC Flexi Cap Fund has an alpha of 7.51%, while Parag Parikh Flexi Cap Fund has a higher alpha of 8.71%, showing stronger fund management and better ability to generate excess returns.
- Upside and Downside Capture Ratios
Apart from the ratios mentioned in the above table, there are a few other ratios you should understand when analysing mutual funds.
| Capture Ratios | Parag Parikh Flexi Cap Fund | HDFC Flexi Cap Fund | Category Average | Index |
|---|---|---|---|---|
| Upside Capture Ratio (10yr) | 82 | 105 | 95 | 70 |
| Downside Capture Ratio (10yr) | 47 | 100 | 93 | 21 |
Upside Capture Ratio shows how much a fund gains compared to its benchmark during a rising (bull) market, indicating how well it performs when the market does well.
Downside Capture Ratio shows how much a fund falls compared to its benchmark during a declining (bear) market, reflecting how well it protects returns in downturns.
Together, these ratios help investors understand a fund’s performance in both rising and falling market conditions.
Interpretation and Insights (10-Year Story Behind the Numbers)
With an Upside Capture of 82, the fund captured 82% of the benchmark’s gains during market rallies, slightly lagging in bullish phases. However, its Downside Capture of 47 shows strong risk management, as it lost much less than the market during declines. This defensive approach contributes to its stable long-term performance and lower volatility.
HDFC Flexi Cap Fund has an Upside Capture of 105, meaning it outperformed the benchmark during rallies. However, its Downside Capture of 100 indicates it fell almost as much as the market in corrections, making it a more aggressive fund that shines in bull markets but is more sensitive to downturns.
HDFC Flexi Cap vs Parag Parikh Flexi Cap: Expense Ratio & Exit Load
| Category | HDFC Flexi Cap Fund | Parag Parikh Flexi Cap Fund |
|---|---|---|
| Expense Ratio | 0.70% | 0.63% |
| Exit Load | 1% if units are redeemed within 1 year | 2% if redeemed on or before 365 days from allotment |
| No Exit Load after 365 days from allotment | 1% if redeemed after 365 days but on or before 730 days | |
| — | No Exit Load after 730 days from allotment |
- Expense Ratio: It represents the annual fee that a mutual fund charges to manage your investment. A lower expense ratio means lower costs and higher returns for investors.
- Exit Load: It is a fee charged when you redeem or withdraw your investment within a specific period. The longer you stay invested, the lower or zero the exit load becomes.
Final Words: Who Wins?
Along with the Parag Parikh Flexi Cap Fund vs HDFC Flexi Cap Fund comparison, this analysis also explains how to analyse mutual funds effectively. We covered key aspects like returns, expense ratio, exit load, and risk metrics to understand each fund’s risk-adjusted performance.
Ultimately, the choice depends on your financial goals. This blog is for educational purposes only and does not recommend any specific fund.
If you prefer investing only in the Indian equity market, HDFC Flexi Cap Fund may suit you. But if you seek international exposure and a diversified portfolio, Parag Parikh Flexi Cap Fund offers both Indian and global equity investments.
FAQs on HDFC Flexi Cap vs Parag Parikh Flexi Cap
Which is better: HDFC Flexi Cap or Parag Parikh Flexi Cap?
Both funds perform well; HDFC focuses on Indian equities, while Parag Parikh offers global diversification. Choice depends on your investment goals and risk appetite.
Does Parag Parikh Flexi Cap invest in international stocks?
Yes, Parag Parikh Flexi Cap invests in global companies like Alphabet, Meta, and Microsoft, offering exposure beyond Indian markets for better diversification.
What type of investors should choose HDFC Flexi Cap Fund?
Investors seeking steady long-term growth from Indian equities with moderate risk can consider HDFC Flexi Cap Fund for their portfolio.
Which fund has lower volatility?
Parag Parikh Flexi Cap Fund shows lower volatility due to its diversified portfolio and overseas exposure, making it more stable during market fluctuations.
Who manages HDFC Flexi Cap Fund?
HDFC Flexi Cap Fund is managed by Ms. Roshi Jain, an experienced fund manager with over 19 years in research and portfolio management.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
