Indian Flexicap mutual funds have reduced their mid-cap and small-cap holdings, increasing allocations to large-cap stocks to 73% as of November 2025. This shift reflects expectations of continued large-cap outperformance amid broader market valuation concerns. Despite this trend, some market experts suggest mid-cap stocks may outperform both large and small caps, noting that mid-cap valuations are nearing historical norms while small-cap premiums remain elevated.