
Flexi-cap funds have seen a significant surge in investor inflows from May to November 2025, driven by a market shift favoring large-cap stocks. This trend suggests investors believe flexi-cap funds offer diversification without exposure to potentially overvalued mid- and small-cap segments. However, the article questions whether flexi-caps are indeed the best diversification option compared to multi-cap funds, which have fixed allocation mandates across market capitalizations.