If you’re confused between two popular HDFC equity funds, you’re not alone. Many investors compare HDFC Multi Cap Fund Direct Growth and HDFC Flexi Cap Fund Direct Growth (formerly known as HDFC Equity Fund) before investing. While both are from the same fund house, they follow different strategies. Here’s a straightforward comparison based on the latest data from Groww as of mid-May 2026.
Fund Basics
- HDFC Multi Cap Fund: NAV around ₹18.99, AUM ₹19,557 Cr, Expense Ratio 0.81%, Minimum SIP ₹100
- HDFC Flexi Cap Fund: NAV around ₹2,128, AUM ₹1,00,479 Cr, Expense Ratio 0.91%, Minimum SIP ₹100
Both funds carry a Very High risk rating.
Returns Comparison
- In the 1-year period, HDFC Multi Cap Fund has given roughly -1.3% while HDFC Flexi Cap Fund returned around -2.59%.
- Over 3 years, HDFC Flexi Cap Fund has done better with annualised returns of around +18.6% compared to +17.2% for HDFC Multi Cap Fund.
- HDFC Flexi Cap Fund also shows a stronger track record over longer periods, like 5 and 10 years.
Keep in mind that past performance does not guarantee future returns.
Portfolio Style and Holdings
- HDFC Multi Cap Fund holds around 118 stocks. It follows the multi-cap 50:25:25 structure, giving decent exposure to large, mid, and small caps. Top holdings include HDFC Bank, ICICI Bank, Reliance Industries, Axis Bank, and Britannia Industries.
- HDFC Flexi Cap Fund holds fewer stocks (around 68) and has more flexibility across market caps, with a clear tilt towards large caps. It is heavily invested in the financial sector. Top holdings include ICICI Bank (8.69%), Axis Bank, HDFC Bank, and State Bank of India.
Investment Objective
- HDFC Multi Cap Fund aims to generate long-term capital appreciation by investing across large, mid, and small cap companies.
- HDFC Flexi Cap Fund seeks capital appreciation by investing predominantly in equities across different market capitalisations, with flexibility in allocation.
Which Fund Is Right for You?
- Go for HDFC Multi Cap Fund if you want broader diversification across market caps, slightly lower expense ratio, and a larger number of stocks in the portfolio.
- Choose HDFC Flexi Cap Fund if you prefer a much bigger fund with a stronger performance track record, higher ratings, and a more concentrated large-cap tilt.
Bottom line: There is no clear winner here. HDFC Flexi Cap Fund scores higher on performance, size, and track record, while HDFC Multi Cap Fund offers better diversification and lower costs. Your decision should depend on how much risk you can take, your investment horizon (preferably 5+ years), and what kind of market cap mix you want in your portfolio. Many people even hold both funds together for balance.
Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information document and other related documents carefully before investing. Past performance is not indicative of future results. This article is for informational purposes only and should not be considered as investment advice. Consult a financial advisor before making any decisions.