A mutual fund scheme’s growth potential can be assessed through a slew of factors such as the category it falls under, AUMs it manages, past record of fund managers and that of mutual fund house, and importantly —the compound annual growth rate (CAGR) returns that the scheme has delivered over a period of time.
There is no denying the fact that all these factors play an important role, but the returns given by the scheme is a key consideration by investors before they decide to put their money.
Here we list out the names of a few flexi cap mutual funds that have given a CAGR return of more than 15 percent in the past ten years. But before we proceed, we will elaborate on what exactly are flexi-cap mutual funds.
And later, we will also explain how are flexi cap schemes different from the similar sounding multi-cap funds.
What are flexi cap funds?
It is a mutual fund scheme that invests 65 percent or more in equity and equity related instruments. Flexi cap fund is an open-ended dynamic scheme that invests across large cap, mid cap and small cap stocks.
There are a total of four flexi cap mutual fund schemes which delivered more than 15 percent returns in the past 10 years. The table below shares details.
|Flexi cap funds
|Quant Flexi Cap Fund
|JM Flexicap Fund
|Kotak Flexicap Fund
|Aditya Birla Sun Life Flexi Cap Fund
(Source: AMFI; regular returns as on March 16, 2023)
As we can see in the table above, Quant Flexi Cap Fund gave 18.73 percent returns in the past 10 years. JM Flexicap Fund delivered 15.39 percent returns to investors, followed by Kotak Flexicap Fund that gave 15.09 percent returns. Aditya Birla Sun Life Flexi Cap Fund that gave 15 percent returns.
Difference with multi cap funds
Although flexi cap funds appear quite similar to multi cap funds, there is a marginal difference between the two. Flexi cap funds are meant to have a minimum 65 percent allocation to equity, without any market-cap linked limitations. As a result, fund managers can exercise their discretion to determine the allocation to large cap, midcap or small cap.
On the other hand, multi cap funds must have a minimum of 25 percent allocation each to large cap, midcap and small cap securities.
Because of this distinction, flexi cap schemes have become more popular than multi cap funds. Sample this: There are a total of 35 flexi cap schemes with a total assets under management (AUMs) of ₹2,40,790.97 crore.
On the other hand, number of multi cap schemes is nearly half i.e., 18 with a total AUMs of ₹66,874.99 crore.
Also, number of folios under flexi cap mutual fund schemes is 1.26 crore, whereas the corresponding figure in multi cap schemes is nearly one-third — 40.75 lakh.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.