To evaluate the performance of a mutual fund, it is vital to check the past returns particularly over a moderate to long period of time. There are several other key factors which help determine the fund scheme’s performance such as the portfolio mix, macro-economic circumstances, overall market movement, reputation of fund house and those of fund managers; however the past returns also play a significant role in assessing the fund’s performance.
Here we take a look at the flexi cap funds wherein the top performing mutual fund delivered a little over 18 percent return in past five years, thus doubling the investment of investors in a span of five years.
At the outset, we define what are flexi cap mutual funds:
Flexi cap mutual funds
These funds invest in companies across the market capitalisation, i.e., mid-cap, small-cap and large-cap stocks.
These funds offer a diversified portfolio wherein they balance the risk and return. They are known to deliver steady returns during times of a bear market phase.
There are some mutual fund schemes that gave humble returns such as Motilal Oswal Flexi Cap Fund gave 5.73 percent, Taurus Flexi Cap Fund gave 5.56 percent and LIC MF Flexi Cap Fund delivered 8.74 percent.
However, the top-performing funds gave high returns in the range of 14-18 percent in the past five years. For instance, Parag Parikh Flexi Cap Fund gave 18.20 percent return and Quant Flexi Cap Fund delivered 17.24 percent return.
|Flexi cap funds||Five-year-returns (%)|
|Parag Parikh Flexi Cap Fund||18.20|
|Quant Flexi Cap Fund||17.24|
|PGIM India Flexi Cap Fund||15.76|
|Canara Robeco Flexi Cap Fund||14.52|
(Source: AMFI; data as on July 29)
So, if you invested ₹one lakh five years ago in Parag Parikh Flexi Cap Fund, the return at the rate of 18.2 percent would have grown to ₹2,30,721, i.e., more than double of your investment.
At the same time, if you invest ₹10,000 as an SIP for five years, the return at the rate of 18.2 percent would have fetched you ₹9.62 lakh by investing only ₹6 lakh.
Here we take a look at the two of the high-performing fund schemes under the category of flexi cap mutual funds.
Parag Parikh Flexi Cap Fund: The scheme has given 20.59 percent return since its inception on May 24, 2013. In other words, if someone had invested ₹10,000 at the time of inception, the investment would have swelled to ₹55,635. The fund's AUM is ₹21,768 crore.
The top stock holdings are ITC, Bajaj Holdings and Investment, HDFC, ICICI Bank, Hero MotoCorp, Coal India and Axis Bank and Power Grid.
Quant Flexi Cap Fund: The Quant flexi cap fund was launched in October 2008. Since inception, the fund has given a return of 12.80 percent. In other words, if someone had invested ₹10,000 that time, it would have by now swelled to ₹52,100.
The top stock holdings in the fund scheme are ITC, SBI, RIL, ICICI Bank, Bharti Airtel, Ambuja Cements, Indian Hotels and NTPC, Ruchi Soya Industries and Grasim Industries.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.