JioBlackRock Flexi Cap NFO: How are other flexi cap funds performing amid volatile market?

Reliance-backed JioBlackRock has entered the active equity fund space with the launch of its first flexi cap scheme, open for subscription between September 23 and October 7, 2025. Market watchers are keenly observing this debut because it is also India’s first Systematic Active Equity (SAE) fund, a framework developed by BlackRock that combines data-driven insights, advanced analytics, and human expertise.

Unlike conventional funds where decisions rely heavily on fund managers’ judgment, the JioBlackRock Flexi Cap Fund will follow a scientific, rule-based strategy to select investments. However, it is not entirely passive—the fund managers will continue to track market movements, risks, and portfolio exposures. The idea is to maintain discipline while minimizing biases and positioning for long-term wealth creation.

Flexi cap funds in demand

Flexi-cap mutual funds have been among the most popular equity categories for Indian investors in recent years. These funds must, by regulation, invest at least 65% of their assets in equities, but unlike multi-cap funds, they can move freely across large-cap, mid-cap, and small-cap segments depending on market opportunities.

This flexibility allows them to capture growth during rallies while limiting downside during corrections. Compared to mid-cap and small-cap funds, flexi caps often see lower drawdowns in volatile phases.

Investor interest has surged: in 2024, flexi cap schemes attracted strong inflows, and the trend has accelerated this year. According to AMFI data, they have already pulled in Rs 468 billion of net inflows in the first eight months of 2025, taking the category’s Assets Under Management (AUM) to nearly Rs 5 lakh crore. This makes flexi caps the second-largest equity fund category after sectoral and thematic funds.

Top flexi cap funds

To understand how JioBlackRock’s NFO might fit into the landscape, it is useful to look at the track record of leading flexi-cap funds.

1. Parag Parikh Flexi Cap Fund

Launched in 2013, this fund is now the largest in its category with over Rs 1.15 lakh crore AUM. Its strategy focuses on value investing—picking fundamentally strong stocks at reasonable valuations. It maintains a large-cap bias while holding tactical exposure to mid- and small-caps and even invests selectively in global giants like Meta, Microsoft, and Alphabet.

As of August 2025, 61% of its holdings are large-caps, with around 12% invested overseas. With a cautious approach that includes 11% allocation to money market instruments, the fund has successfully managed risk.

Over 10 years, a monthly SIP of Rs 10,000 in this fund has grown to Rs 35.7 lakh, delivering 20.67% XIRR, well above its benchmark Nifty 500 TRI’s 15.95%.

2. HDFC Flexi Cap Fund

With a legacy dating back to 1995, this fund (rebranded in 2021) has amassed Rs 819 billion in AUM, the second-highest in the flexi cap category. It blends growth and value styles, maintaining a diversified portfolio across industries.

As of August 2025, it holds 50 stocks, with nearly 75% large-cap exposure. Its top holdings include ICICI Bank, HDFC Bank, and Axis Bank, together reflecting a strong banking bias.

Over the last decade, it has delivered 20.03% SIP returns, once again outperforming the Nifty 500 TRI. A Rs 10,000 SIP has grown to Rs 34.5 lakh.

3. Franklin India Flexi Cap Fund

One of the oldest equity funds in India, Franklin India Flexi Cap Fund has a 30-year history. With an AUM of ₹187 billion, it remains a steady performer. It adopts a disciplined, research-driven approach with a preference for fundamentally sound businesses.

As of August 2025, it holds 56 stocks—76% in large-caps, 10% in mid-caps, and 9% in small-caps. Its top bets include HDFC Bank, ICICI Bank, and Bharti Airtel.

In the last decade, it has delivered 17.41% SIP returns, translating a ₹10,000 SIP into nearly ₹29.9 lakh. While slightly lower than peers, it has still beaten its benchmark on a risk-adjusted basis.

Best performing Flexi Cap funds across different time periods

6 Months: ICICI Prudential Flexicap Fund – Direct Plan → 17.22%

1 Year: HDFC Focused Fund – Direct Plan → 4.58%

3 Years: Invesco India Focused Fund – Direct Plan → 25.19%

5 Years: HDFC Focused Fund – Direct Plan → 30.20%

Performance of other funds

Fund Name                                          6M Return   1Y Return   3Y Return   5Y Return
————————————————————————————————-
HDFC Focused Fund – Direct Plan                    10.60%      4.58%       24.15%      30.20%
HDFC Flexi Cap Fund – Direct Plan                  10.89%      4.11%       24.51%      29.79%
ICICI Prudential Retirement Fund – Pure Equity     16.44%      3.01%       25.17%      29.48%
Quant Flexi Cap Fund – Direct Plan                 8.01%      -11.20%      18.43%      27.13%
JM Flexicap Fund – Direct Plan                     8.85%      -9.65%      24.58%      27.03%

What it means for investors

The success of Parag Parikh, HDFC, and Franklin India’s flexi cap funds highlights why the category is attracting billions in inflows. Their ability to switch between large-, mid-, and small-caps depending on market cycles gives them a clear edge over more rigid categories.

JioBlackRock’s data-science-powered SAE strategy sets it apart from traditional flexi caps. If the fund manages to combine algorithmic discipline with human oversight effectively, it could emerge as a strong contender in this high-growth segment.

For investors, the arrival of a new player adds diversity and choice. However, as with any new fund offer (NFO), the actual performance track record will take time to establish. For now, existing leaders continue to dominate, setting high benchmarks for consistency and long-term wealth creation.