The two best mutual funds for your long-term portfolio

Summary: For a long time, flexi-cap funds were our go-to recommendation for long-term investors. But there’s been a quiet rethink at Value Research. In a recent podcast, our CEO Dhirendra Kumar put it plainly: “A few years ago, I’d have said flexi-cap funds are the best long-term choice. But not anymore.” So, which funds is he backing now? Let’s find out. For years, flexi-cap funds have been the default recommendation for long-term investors. And with good reason. They’re diversified, market-cap agnostic and highly adaptable, since they give fund managers the freedom to move money between large-, mid- and small-cap stocks depending on where opportunities lie. That flexibility has paid off handsomely. As of September 2025, over Rs 5 lakh crore is invested in flexi-cap funds, more than in any other equity category. The country’s two largest equity funds — Parag Parikh Flexi Cap and HDFC Flexi Cap, with total corpus of around Rs 1.19 lakh crore and Rs 85,500 crore, respectively — belong here. But lately, there’s been a quiet rethink. In a widely-viewed podcast posted four months back, Dhirendra Kumar, CEO of Value Research, offered a surprising twist to the old wisdom: “A few years ago, I’d have said flexi-cap funds are the best long-term choice. But not anymore. The best choice right now seems to be multi-cap funds.” Why the shift? When flexibility becomes a constraint Flexi-cap funds were designed for freedom, but some have grown so lar