Before choosing a mutual fund scheme to invest, investors tend to weight a slew of pros and cons. Some of them include the category of mutual fund scheme, reputation of fund house and future outlook of the scheme, among others.
However, one key factor that usually scores over others is the historical returns posted by the scheme in the past few years.
Here we give the lowdown on a number of flexi cap funds and the returns they delivered in the past half a decade. But at the outset we describe what exactly are flexi cap mutual fund schemes:
What are flexi cap funds?
Flexi cap funds are mutual funds that invest in companies across sectors and they have the flexibility to choose the proportion of stocks in different market capitalisation.
They must ensure to invest a minimum of 65 percent of assets in equity, while they have a flexibility of changing allocation between large cap, mid cap and small caps stocks.
There are 35 schemes in this category with net assets under management (AUM) of ₹2,41,682 crore as on March 31, 2023, shows the latest AMFI (Association of Mutual Funds in India) data .
|Flexi cap funds||5-year-returns (%)|
|Quant Flexi Cap Fund||17.72|
|Parag Parikh Flexi Cap Fund||17.33|
|PGIM India Flexi Cap Fund||13.01|
|HDFC Flexi Cap Fund||13.21|
|Canara Robeco Flexi Cap Fund||12.22|
|JM Flexicap Fund||12.82|
(Source: AMFI, regular returns as on April 28, 2023)
As we can see in the table above, there are six mutual fund schemes in this category which have given a compound annual growth rate (CAGR) return of more than 12 percent in the past five years.
The top performing scheme are Quant Flexi Cap Fund and Parag Parikh Flexi Cap Fund that have given a return of more than 17 percent.
At the same time, PGIM India Flexi Cap Fund and HDFC Flexi Cap Fund have delivered CAGR returns of more than 13 percent. Other two schemes are Canara Robeco Flexi Cap Fund and JM Flexicap Fund.
Here we share further details on the top performing schemes:
Quant Flexi Cap Fund: It was launched on October 17, 2008. The scheme has given a return of 13.42 percent since inception.
This means if someone had invested ₹10,000 in the scheme, it would have grown to ₹62,331. The key constituent stocks are RIL, SBI, ITC, HDFC Bank, L&T, NTPC, Ultra Tech Cement, DLF, Capri Global Capital and Aurobindo Pharma.
Parag Parikh Flexi Cap Fund: This scheme was launched on May 24, 2013. Since inception, the scheme has given a CAGR return of 17.61 percent.
This means if someone had invested ₹10,000 in the scheme, it would have given a return of ₹49,492. The key constituent stocks include HDFC, ITC, Bajaj Holdings & Investment, ICICI Bank, Axis Bank, HCL Technologies and Coal India.