Before investing in a mutual fund scheme, retail investors are expected to weigh a number of pros and cons relating to their investment. And, so they do!
The key considerations include the fund manager’s past performance, category fund scheme belongs to, macro-economic factors and importantly —scheme’s past performance vis-à-vis other funds in the same category.
Another consideration that usually does — and should — weigh on the minds of investors is whether the scheme has managed to beat the benchmark index. Consistently being able to beat the benchmark index is seen as a positive thing in favour of flexi cap mutual funds.
Benchmark index for a fund scheme is the index against which the scheme intends to measure its performance. So, staying ahead of this index, naturally, is seen as the meeting of a self-chosen goal post.
Here we give a lowdown on the flexi cap mutual funds that managed to beat their benchmark index:
|Flexi cap funds||5-year-returns (%)||Benchmark (%)|
|DSP Flexi Cap Fund||17.71||16.12|
|Franklin India Flexi Cap Fund||16.75||16.12|
|HDFC Flexi Cap Fund||17.66||16.12|
|JM Flexicap Fund||19.96||16.30|
|Parag Parikh Flexi Cap Fund||20.01||16.12|
|PGIM India Flexi Cap Fund||18.65||16.12|
|Quant Flexi Cap Fund||24.18||16.12|
|Union Flexi Cap Fund||16.90||16.30|
(Source: AMFI; 5-year-returns as on Oct 9, 2023)
As we can see in the table above Quant Flexi Cap Fund delivered the highest return (over 24% annualised return) and other top-performing schemes have delivered an annualised return in the range of 16-20 percent.
Top-performing flexi cap schemes:
Quant Flexi Cap Fund: It was launched on Aug 28, 2008. It has an assets under management (AUM) of ₹1,909 crore.
The scheme has given an annualised return of 13.95 percent since inception. The key constituent stocks include Treps, HDFC Bank, Future on Tata Steel, RIL and Jio Financial Services.
Parag Parikh Flexi Cap Fund: It was launched on May 24, 2013 and has given an annualised return of 18.44 percent since inception. The scheme has an AUM of ₹40,760 crore.
The key constituent stocks include Clearing Corporation of India, HDFC Bank, Bajaj Holdings & Investment, ITC and Axis Bank.
JM Flexicap Fund: It was launched on Sep 23, 2008 and has delivered an annualised return of 13.63 percent since inception.
The scheme has a total AUMs of ₹545 crore and key constituent stocks include REC, L&T, Treps-Tri party Repo, Infosys and One 97 Communications.