Before investing in a mutual fund scheme, investors tend to weigh a slew of factors such as the past performance of fund managers, reputation of fund house, category of fund scheme and importantly – the past performance of that scheme vis-à-vis other schemes in the same category.
Although investment advisors often emphasise that the past performance of a mutual fund scheme is not a guarantee for the scheme’s future performance; it is certainly a key factor that is often not overlooked by all and sundry.
Here, we shed light on the 10 years performance delivered by flexi cap mutual funds.
Before we dig deeper on the compound annual growth rate (CAGR) returns delivered by flexi cap mutual funds, let us elaborate more on what exactly are flexi-cap mutual funds.
What are flexi-cap mutual funds?
Flexi cap mutual funds fall under a relatively new category introduced in Nov 2020 by the capital markets regulator Securities Exchange Board of India (SEBI). These funds are meant to invest a minimum of 65 percent of total assets in equity & equity-related instruments.
These are open-ended dynamic equity schemes and invest across large cap, mid cap and small cap stocks. At the time of introduction of this category, the fund houses were also given an option to convert existing schemes into flexi-cap schemes.
As a result, a number of multi cap mutual funds schemes were converted into flexi cap mutual funds because of the flexibility they offer.
No wonder then there are 35 flexi-cap mutual fund schemes with net assets under management (AUMs) of ₹2.62 lakh crore, while there are only 19 schemes in the multi-cap category with net AUMs of ₹74,000 crore, shows the AMFI (Association of Mutual Funds in India) data as on May 31, 2023.
And when we talk about the past performance, the highest-performing flexi cap mutual fund scheme (as on June 30, 2023) was Quant Flexi Cap Fund, delivering a compound annual growth rate (CAGR) return of 21.78 percent in the past 10 years.
Other flexi cap mutual fund schemes include Parag Parikh Flexi Cap Fund, JM Flexicap Fund and Aditya Birla Sun Life Flexi Cap Fund gave 10-year returns of 18.80 percent, 17.24 percent and 17.05 percent, respectively.
|Flexi cap mutual funds||10-year returns (%)|
|Quant Flexi cap||21.78|
|Parag Parikh Flexi cap||18.80|
|JM Flexi Cap||17.24|
|Aditya Birla Sun Life Flexi Cap||17.05|
(10-year returns as on June 30, 2023; Source: AMFI)
Here we share further details on flexi cap funds:
Quant Flexi Cap Fund: It was launched on Aug 28, 2008 and fund managers of the scheme are Sanjeev Sharma, Vasav Sahgal, Ankit A Pande and Sandeep Tandon. Since inception, the scheme has given a CAGR return of 13.74 percent.
The key constituent stocks in the scheme are Reliance Industries, HDFC Bank, Larsen & Toubro, and State Bank of India (SBI). The scheme’s AUMs are ₹1,448 crore.
Parag Parikh Flexi Cap Fund:It was launched on May 24, 2013. The fund is managed by Raj Mehta, Rajeev Thakkar, Raunak Onkar and Rukun Tarachandani.
The scheme has delivered a CAGR return of 18.54 percent since inception.
The key constituent stocks of the scheme are Clearing Corporation of India, HDFC, ITC, Bajaj Holdings & Investment, and ICICI Bank.
JM Flexicap Fund: It was launched on Sep 23, 2008. The fund is managed by Satish Ramanathan, Gurvinder Wasan and Chaitanya Choksi.
The scheme has delivered a CAGR return of 13.22 percent and the key constituent stocks are RIL, L&T, Infosys, HDFC Bank and ICICI Bank. The scheme's AUM is ₹393 crore.
Aditya Birla Sun Life Flexi Cap Fund: This scheme was launched on Aug 27, 1998. The fund is being managed by Anil Shah and Dhaval Joshi. The scheme has delivered a return of 21.39 percent since inception.
The key constituent stocks are ICICI Bank, HDFC Bank, Infosys, Bharti Airtel and HCL Technologies, among others.