The strongest flexi-cap funds in every major market crash

Summary: Everyone thinks they know the answer: in flexi caps, Parag Parikh Flexi Cap is the undisputed champion. But what happens when the market falls apart? Is it still miles ahead, or is another fund quietly catching up when fear takes over? To find out, we dug into every major market downturn of the last 10 years.

Experienced mutual fund watchers probably think they already know the answer.

In the flexi-cap universe, it often feels like everything begins and ends with the Parag Parikh Flexi Cap Fund.

Even casual tennis fans will get this analogy: Parag Parikh is the Carlos Alcaraz and Jannik Sinner of the category. At the top, it’s Parag Parikh, then clear daylight, followed by the rest.

But is there any other fund that is giving this fund a run for its money, especially when the chips are down? To answer that, we looked at how flexi-cap funds behaved during every major market fall, specifically when the market (Nifty 500 TRI) bled more than 15 per cent over the last 10 years.

Let’s walk through each crash.

1. March 2015 to February 2016, when Nifty 500 TRI fell nearly 20 per cent

Market fall: –19.4 per cent

Most resilient flexi-cap funds:

• Parag Parikh Flexi Cap: –7.9 per cent
• SBI Flexicap: –11.2 per cent
• Motilal Oswal Flexi Cap: –11.8 per cent
• Franklin India Flexi Cap: –12.7 per cent
• Bandhan Flexi Cap: –13.3 per cent

Right from the first correction, Parag Parikh shows its trademark behaviour by falling dramatically less than the market.

2. August 2018 to October 2018

Market fall: –15.6 per cent

Top performers:

• Parag Parikh Flexi Cap: –11.5 per cent
• Quant Flexi Cap: –12.1 per cent
• LIC MF Flexi Cap: –12.6 per cent
• Union Flexi Cap: –13.6 per cent
• HDFC Flexi Cap: –13.8 per cent

Different correction, same pattern. Parag Parikh once again leads resilience.

3. January 2020 to March 2020 (Covid crash)

Market fall: –29 per cent

Five most resilient funds:

• Axis Flexi Cap: –18.4 per cent
• Canara Robeco Flexi Cap: –20.4 per cent
• Parag Parikh Flexi Cap: –21.4 per cent
• Tata Flexi Cap: –22.9 per cent
• Quant Flexi Cap: –23 per cent

This time, Axis steals the show, but Parag Parikh still holds strong, cushioned by its global allocation.

4. October 2021 to June 2022

Market fall: –16.9 per cent

Best performers:

• HDFC Flexi Cap: –9.5 per cent
• ICICI Prudential Flexi Cap: –10.5 per cent
• Nippon India Flexi Cap: –14.6 per cent
• SBI Flexicap: –15.3 per cent
• Kotak Flexicap: –15.8 per cent

HDFC makes its presence felt, taking the top spot this time.

5. September 2024 to February 2025

Market fall: –18.6 per cent

Funds that fell the least:

• Parag Parikh Flexi Cap: –6.3 per cent
• HDFC Flexi Cap: –11.9 per cent
• Tata Flexi Cap: –14 per cent
• UTI Flexi Cap: –14.7 per cent
• WhiteOak Flexi Cap: –15.3 per cent

Back to familiar territory. Parag Parikh once again shows solid downside protection, falling only 6.3 per cent during an 18.6 per cent index drop.

What the patterns tell us

A few insights emerge clearly:

• Parag Parikh Flexi Cap appears four times on this crash-proof list, and
  was the most resilient fund in three out of five market crashes.
• HDFC Flexi Cap shows up three times, including once as the best performer.
• SBI and Tata Flexi Cap appear twice, while the rest rotate in and out like musical chairs.

No surprises, then. The data simply confirms what investors have sensed for years. Parag Parikh Flexi Cap is the most consistently resilient flexi-cap fund in market downturns.

And the closest challenger? HDFC Flexi Cap.

No wonder these two funds also happen to be the largest active equity funds in India, together managing over Rs 2.1 lakh crore.

So, which flexi-cap funds should you invest in?

That’s where things often get tricky. Not every downturn behaves the same. Not every fund manager stays consistent. And not every investor has a similar risk profile.

If you want a handpicked shortlist, based on data, long-term track record, risk behaviour and consistency, you don’t need to guess.

Value Research Fund Advisor does that homework for you.

It also tells you how to build a portfolio that can survive both bull markets and meltdowns.

If you want to know which funds actually deserve a place in your long-term plan, start there.

Visit Fund Advisor today

Also read: Ranking the 4 most consistent flexi-cap funds in India