While determining the returns posted by a mutual fund scheme, one tends to compare them to a number of other schemes in the same category. At the same time, it is also advisable to examine their performance vis-à-vis the returns given by benchmark indices.
So, here we take a look at the eight flexi cap schemes that have delivered higher CAGR (compound annual growth rate) returns in the past five years than that of their benchmark indices.
But before we proceed, let us understand what exactly are flexi cap mutual funds.
Flexi cap mutual fund category was introduced via a Sebi circular on Nov 6, 2020 that stated that these schemes must invest a minimum of 65 percent of total assets in equity and equity related instruments.
And they are an open-ended dynamic scheme which invests across large cap, mid cap and small cap stocks.
There are 36 schemes in this category with total assets under management (AUMs) of ₹2.72 lakh crore as on June 30, 2023.
For the unversed, benchmark index is an indicator against which a mutual fund’s performance can be measured
Having a benchmark index gives investors an idea of the performance of a fund which includes the choice of constituent stocks, proportion in which funds have been allocated, and the rate of appreciation in the price of constituent stocks, etc.
The returns given by the following eight mutual fund schemes have surpassed the returns of benchmark indices. These schemes mapped their returns to two benchmark indices namely Nifty 500 (with 12.98% return) and S&P BSE 500 (with 13.20% return).
|Flexi cap funds||Benchmark (%)||5-year-returns (%)|
|DSP Flexi Cap Fund||12.98||13.46|
|Franklin India Flexi Cap Fund||12.98||13.64|
|HDFC Flexi Cap Fund||12.98||15.24|
|JM Flexicap Fund||13.20||15.08|
|Parag Parikh Flexi Cap Fund||12.98||17.60|
|PGIM India Flexi Cap Fund||12.98||15.61|
|Quant Flexi Cap Fund||12.98||20.66|
|Union Flexi Cap Fund||13.20||13.99|
(Source: AMFI, data as on Aug 4, 2023)
As we can see the highest returns were given by Quant Flexi Cap fund, followed by Parag Parikh Flexi Cap Fund. Other flexi cap schemes that have outpaced benchmark returns have delivered returns in the range of 13-15 percent per annum.
These include Union Flexi Cap Fund (13.99%), DSP Flexi Cap Fund (13.46%) and PGIM India Flexi Cap Fund (15.61%).