Retail Investors in Bengaluru drive 36% growth in Tata Flexi Cap Fund Investments

Bengaluru | May 29, 2025: Amid cautious optimism in the Indian equity market, Flexi Cap funds have emerged as a preferred choice for retail investors. The industry witnessed a sharp rise in net inflows into this category in FY25, which more than tripled to Rs. 49,580 crores from Rs 15,502 crore in FY24, driven by its ability to navigate uncertain market conditions.

“In the current environment of shifting global cues and valuation disparities across market caps, Flexi Cap funds stand out for their built-in adaptability,” said Amey Sathe, Fund Manager at Tata Asset Management. The fund’s strategy allows reallocation between large, mid, and small-cap stocks depending on market dynamics, offering diversification and resilience in volatile conditions.

Among Flexi Cap funds, the Tata Flexi Cap Fund recorded an overall 25% year-on-year growth in inflows in FY25, with investments from Bengaluru growing at a faster pace than the overall category. Investments into the fund from the capital city of Karnataka grew by 36% to Rs. 11.5 crore in FY25, from Rs 8.5 crore a year ago, reflecting growing investor confidence.

Flexi Cap Funds give money managers the flexibility to tilt towards large caps during uncertain times for stability and pivot to mid- and small-caps when higher return potential justifies added risks. This built-in flexibility to reallocate assets across market-caps helps portfolios remain resilient even when specific market segments underperform.

“For retail investors, this dynamic approach offers both diversification and the agility needed to respond to changing market conditions,” Sathe said.

The ability to swiftly adjust asset allocation makes flexi cap funds an increasingly attractive option for retail investors looking for a single, adaptable investment solution in an unpredictable market.