![HDFC Flexi Cap fund vs Motilal Oswal Flexi Cap fund: Returns, portfolio and performance comparison [2025]](https://mangobunch.in/wp-content/uploads/2025/11/Motilal-Oswal-Flexi-Cap-vs-HDFC-Flexi-Cap.jpg)
HDFC Flexi Cap Fund and Motilal Oswal Flexi Cap Fund represent two contrasting investment approaches within India’s flexi cap mutual fund category. HDFC, with its 5-star Crisil rating, follows a conservative large-cap dominated strategy, whilst Motilal Oswal adopts a unique concentrated mid and small-cap focused approach with minimal large-cap exposure. This comprehensive comparison analyses returns, portfolio composition, expense ratios, and investment strategies to help investors understand which flexi cap fund aligns with their wealth creation objectives.
HDFC Flexi Cap fund and Motilal Oswal Flexi Cap fund: Key metrics at a glance
Here is a detailed comparison of essential fund parameters as of November 2025:
| Parameter | HDFC Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| NAV (21 Nov 2025) | ₹2,074.87 | ₹62.28 |
| Fund Size (AUM) | ₹91,041 Cr | ₹14,319.21 Cr |
| Expense Ratio | 1.36% | 1.71% |
| Crisil Rating | ⭐⭐⭐⭐⭐ (5 Stars) | ⭐⭐⭐ (3 Stars) |
| Risk Level | Very High | Very High |
| Portfolio Turnover | 17.30% | 128.00% |
| Number of Stocks | 50 | 16 |
| Fund House | HDFC Mutual Fund | Motilal Oswal Mutual Fund |
| Inception Date | 01-Jan-1995 | 28-Apr-2014 |
HDFC Flexi Cap Fund manages substantially larger assets at ₹91,041 crore compared to Motilal Oswal’s ₹14,319 crore. The most striking difference lies in portfolio turnover—HDFC’s conservative 17.30% versus Motilal Oswal’s aggressive 128.00%, indicating fundamentally different trading philosophies. Motilal Oswal’s concentrated 16-stock portfolio contrasts sharply with HDFC’s diversified 50-stock holdings. Notably, Motilal Oswal’s Crisil rating was recently downgraded from 5 stars to 3 stars, signalling performance concerns.
HDFC Flexi Cap fund vs Motilal Oswal Flexi Cap fund: One-year and short-term returns
Recent performance data reveals significant divergence between these funds:
| Period | HDFC Flexi Cap Returns | Motilal Oswal Returns | Category Average |
|---|---|---|---|
| 1 Week | 0.41% | -0.05% | -0.22% |
| 1 Month | 0.09% | -0.95% | -0.26% |
| 3 Months | 3.13% | 0.62% | 1.88% |
| 6 Months | 6.52% | 4.20% | 5.23% |
| YTD | 11.18% | -3.11% | 3.36% |
| 1 Year | 13.09% | 5.09% | 6.78% |
HDFC Flexi Cap Fund has substantially outperformed with 13.09% one-year returns against Motilal Oswal Flexi Cap Fund’s 5.09%. The year-to-date performance gap is even more pronounced—HDFC delivering 11.18% whilst Motilal Oswal shows negative returns of -3.11%. Motilal Oswal’s one-year returns of 5.09% trail even the category average of 6.78%, explaining its recent Crisil rating downgrade from 5 to 3 stars.
HDFC Flexi Cap fund and Motilal Oswal Flexi Cap fund: Long-term returns comparison
Long-term performance comparison reveals interesting patterns across market cycles:
| Period | HDFC Flexi Cap Annualised Returns | Motilal Oswal Annualised Returns | Category Average |
|---|---|---|---|
| 2 Years | 23.14% | 23.72% | 16.38% |
| 3 Years | 21.82% | 22.31% | 16.59% |
| 5 Years | 26.32% | 17.35% | 18.12% |
| 10 Years | 16.54% | 13.51% | 14.21% |
| Since Inception | 18.84% | 17.12% | 14.19% |
Interestingly, Motilal Oswal Flexi Cap Fund marginally outperforms HDFC over two and three-year periods with 23.72% and 22.31% annualised returns respectively. However, HDFC demonstrates superior long-term consistency with 26.32% five-year returns versus Motilal Oswal’s 17.35%—a substantial 8.97 percentage point difference. Over a decade, HDFC’s 16.54% returns exceed Motilal Oswal’s 13.51%, highlighting the importance of consistent performance across market cycles.
HDFC Flexi Cap fund vs Motilal Oswal Flexi Cap fund: SIP returns analysis
Systematic Investment Plan returns reflect real wealth creation experience for retail investors:
| SIP Period | HDFC Absolute Returns | HDFC Annualised | Motilal Oswal Absolute Returns | Motilal Oswal Annualised |
|---|---|---|---|---|
| 1 Year (₹12,000 invested) | 8.27% | 15.60% | 4.11% | 7.67% |
| 2 Years (₹24,000 invested) | 16.54% | 15.44% | 13.87% | 13.00% |
| 3 Years (₹36,000 invested) | 35.13% | 20.52% | 36.20% | 21.08% |
| 5 Years (₹60,000 invested) | 72.84% | 22.02% | 58.75% | 18.52% |
| 10 Years (₹1,20,000 invested) | 174.04% | 19.13% | 116.58% | 14.77% |
HDFC Flexi Cap Fund delivers consistently superior SIP returns across most time periods. The five-year SIP absolute returns stand at 72.84% for HDFC versus 58.75% for Motilal Oswal. The 10-year SIP comparison is even more striking—HDFC’s 174.04% absolute returns significantly outpace Motilal Oswal’s 116.58%. However, Motilal Oswal shows competitive three-year SIP returns of 36.20% versus HDFC’s 35.13%, reflecting its strong mid-term performance.
HDFC Flexi Cap fund and Motilal Oswal Flexi Cap fund: Portfolio allocation strategy
The portfolio composition reveals fundamentally different investment approaches:
| Asset Class | HDFC Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Total Equity | 87.14% | 89.28% |
| Debt | 0.57% | 0.00% |
| Others | 12.29% | 10.72% |
| Large Cap | 60.11% | 5.17% |
| Mid Cap | 2.09% | 7.96% |
| Small Cap | 4.16% | 6.17% |
| Other Equity | 20.78% | 69.99% |
| Number of Stocks | 50 | 16 |
The portfolio allocation differences are striking. HDFC maintains a conservative 60.11% large-cap allocation, whilst Motilal Oswal holds merely 5.17% in large-caps—the lowest amongst major flexi cap funds. Motilal Oswal’s unique strategy allocates 69.99% to “Other” equity categories, suggesting significant exposure to unconventional opportunities outside traditional market-cap classifications. The concentrated 16-stock portfolio versus HDFC’s 50 stocks indicates Motilal Oswal’s high-conviction investment approach.
HDFC Flexi Cap fund vs Motilal Oswal Flexi Cap fund: Top 10 holdings comparison
Stock selection philosophies differ dramatically between these funds:
| Rank | HDFC Flexi Cap Holdings | Sector | % | Motilal Oswal Holdings | Sector | % |
|---|---|---|---|---|---|---|
| 1 | ICICI Bank Ltd | Private Banking | 9.01% | Persistent Systems Ltd | IT Services | 10.06% |
| 2 | HDFC Bank Ltd | Private Banking | 8.57% | Eternal Ltd | E-commerce | 8.88% |
| 3 | Axis Bank Ltd | Private Banking | 7.31% | Dixon Technologies Ltd | Consumer Electronics | 8.66% |
| 4 | State Bank of India | Public Banking | 4.53% | Coforge Ltd | IT Services | 8.52% |
| 5 | SBI Life Insurance | Life Insurance | 4.30% | Kalyan Jewellers India | Jewellery | 8.36% |
| 6 | Kotak Mahindra Bank | Private Banking | 4.20% | Polycab India Ltd | Electricals | 8.29% |
| 7 | Maruti Suzuki India | Automobiles | 3.56% | Trent Limited | Retail | 7.38% |
| 8 | Cipla Ltd | Pharmaceuticals | 3.46% | Cholamandalam Finance | NBFC | 6.96% |
| 9 | HCL Technologies | IT Services | 3.05% | CG Power & Industrial | Electrical Equipment | 6.17% |
| 10 | Bharti Airtel Ltd | Telecom | 2.48% | Siemens Energy India | Power Generation | 4.45% |
HDFC Flexi Cap Fund maintains heavy banking sector concentration with five banks in top holdings. Motilal Oswal Flexi Cap Fund demonstrates a completely different philosophy—focusing on emerging growth companies across IT services, consumer discretionary, and manufacturing sectors. The fund’s top 10 holdings are remarkably concentrated, with each stock commanding 4-10% weightage, indicating extremely high-conviction positions in mid-sized growth companies like Persistent Systems, Dixon Technologies, and Trent Limited.
HDFC Flexi Cap fund and Motilal Oswal Flexi Cap fund: Expense ratio and cost comparison
Investment costs significantly impact long-term wealth creation:
| Cost Parameter | HDFC Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Expense Ratio | 1.36% | 1.71% |
| Category Average | 1.89% | 1.89% |
| Cost Difference | Below Average | Below Average |
| Annual Cost on ₹10 Lakh | ₹13,600 | ₹17,100 |
| 10-Year Cost Impact on ₹10 Lakh | ₹1,36,000 | ₹1,71,000 |
| Cost Savings (HDFC vs Motilal) | ₹3,500/year | – |
HDFC Flexi Cap Fund offers notable cost advantage with 1.36% expense ratio compared to Motilal Oswal’s 1.71%. Investors save approximately ₹3,500 annually per ₹10 lakh invested by choosing HDFC. Additionally, Motilal Oswal’s exceptionally high portfolio turnover of 128% generates additional transaction costs not fully reflected in the expense ratio, potentially widening the effective cost gap.
HDFC Flexi Cap fund vs Motilal Oswal Flexi Cap fund: Risk metrics and Crisil ratings
Risk assessment reveals significant differences in fund characteristics:
| Risk Parameter | HDFC Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Risk-O-Meter | Very High Risk | Very High Risk |
| Crisil Rating | 5 Stars | 3 Stars |
| Rating Description | Very Good Performance | Average Performance |
| Previous Rating | 5 Stars (Stable) | 5 Stars (Downgraded) |
| Portfolio Turnover | 17.30% | 128.00% |
| Number of Stocks | 50 | 16 |
| Concentration Risk | Moderate | Very High |
The dramatic difference in portfolio turnover—17.30% for HDFC versus 128.00% for Motilal Oswal—signals contrasting investment philosophies. HDFC’s stable buy-and-hold approach minimises transaction costs and tax implications. Motilal Oswal’s aggressive turnover indicates frequent portfolio restructuring, which can generate higher costs and short-term capital gains taxes. The recent Crisil downgrade from 5 to 3 stars for Motilal Oswal reflects its challenging recent performance.
HDFC Flexi Cap fund and Motilal Oswal Flexi Cap fund: Portfolio concentration analysis
Motilal Oswal’s highly concentrated portfolio warrants detailed examination:
| Concentration Metric | HDFC Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Total Stocks | 50 | 16 |
| Top 5 Holdings Weight | 33.72% | 44.48% |
| Top 10 Holdings Weight | 50.47% | 77.73% |
| Category Average Stocks | 63.19 | 63.19 |
| Large Cap Exposure | 60.11% | 5.17% |
| Banking Sector Weight | ~34% | 0% |
Motilal Oswal Flexi Cap Fund runs one of the most concentrated portfolios in the flexi cap category with just 16 stocks against the category average of 63 stocks. The top 10 holdings constitute a massive 77.73% of the portfolio, creating significant single-stock risk. HDFC’s more diversified 50-stock portfolio with 50.47% in top 10 holdings offers better risk distribution. Motilal Oswal’s near-zero banking exposure contrasts starkly with HDFC’s ~34% banking concentration.
HDFC Flexi Cap fund and Motilal Oswal Flexi Cap fund: Investment philosophy comparison
Understanding core investment philosophies helps investors select appropriate funds:
| Philosophy Aspect | HDFC Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Investment Style | Large-Cap Value | Mid/Small-Cap Growth |
| Portfolio Approach | Diversified | Highly Concentrated |
| Turnover Strategy | Buy and Hold | Active Trading |
| Sector Focus | Banking & Financials | Technology & Consumer |
| Risk Appetite | Moderate-High | Very High |
| Market Cap Bias | Large Cap (60%) | Mid/Small Cap (70%+) |
| Track Record | 30+ Years | 11 Years |
HDFC follows a traditional diversified approach with large-cap quality focus, whilst Motilal Oswal pursues aggressive growth through concentrated mid and small-cap bets. HDFC’s three-decade track record provides historical consistency, whereas Motilal Oswal’s strategy delivers high returns during favourable markets but faces challenges during corrections.
Which flexi cap fund is suitable for different investor profiles
Selecting between these funds requires understanding personal investment preferences:
| Investor Profile | Recommended Fund | Reason |
|---|---|---|
| Conservative investors | HDFC Flexi Cap Fund | 5-star rating, diversified large-cap focus |
| Aggressive growth seekers | Motilal Oswal Flexi Cap Fund | Concentrated mid/small-cap exposure |
| Cost-conscious investors | HDFC Flexi Cap Fund | Lower expense ratio (1.36% vs 1.71%) |
| Long-term wealth builders (10+ years) | HDFC Flexi Cap Fund | Superior 10-year returns (16.54% vs 13.51%) |
| High-conviction investors | Motilal Oswal Flexi Cap Fund | Concentrated 16-stock portfolio |
| Banking sector bulls | HDFC Flexi Cap Fund | Heavy banking concentration |
| Technology & consumer sector believers | Motilal Oswal Flexi Cap Fund | Focus on IT and consumer discretionary |
| Risk-averse investors | HDFC Flexi Cap Fund | Stable track record, lower volatility |
Final verdict: HDFC Flexi Cap fund vs Motilal Oswal Flexi Cap fund
HDFC Flexi Cap Fund and Motilal Oswal Flexi Cap Fund represent polar opposite approaches within the flexi cap universe. HDFC’s 5-star Crisil rating, superior one-year returns of 13.09%, lower expense ratio of 1.36%, and diversified large-cap portfolio make it suitable for investors seeking consistency with growth potential. The fund’s three-decade track record, ₹91,041 crore AUM, and conservative 17.30% portfolio turnover provide confidence for long-term wealth creation.
Motilal Oswal Flexi Cap Fund’s recent Crisil downgrade from 5 to 3 stars reflects its challenging one-year performance of 5.09%, trailing even the category average. However, its competitive two and three-year returns of 23.72% and 22.31% demonstrate potential during favourable market conditions. The fund’s concentrated 16-stock portfolio, minimal 5.17% large-cap allocation, and 128% turnover ratio suit aggressive investors with high risk tolerance who believe in the fund manager’s stock-picking abilities.
Investors prioritising stability, diversification, and proven track record should favour HDFC Flexi Cap Fund. Those comfortable with concentration risk, higher volatility, and conviction-based investing may consider Motilal Oswal Flexi Cap Fund, recognising its recent underperformance whilst acknowledging its potential for outperformance during growth-oriented market cycles.
Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Investors should consult financial advisors before making investment decisions.
