If you are a conservative investor, it is advisable to invest in relatively safer mutual fund schemes that invest in stocks across the market capitalisation spectrum i.e., small cap, mid cap and large cap stocks.
One of the safest categories of mutual fund schemes are flexi cap funds. But what exactly are flexi-cap mutual funds?
Flexi cap funds
They are a type of mutual fund in which fund managers invest in stocks of different sizes of companies i.e., large cap, mid cap and small cap. But unlike multi cap funds, these funds don’t necessarily have to invest in each category of stocks in the proportion of 25 percent of total portfolio.
However, 65 percent of the total fund is to be invested in the equity of all the market cap. Here, we look at the mutual fund schemes that have delivered maximum returns within the category of flexi cap funds:
| Flexi cap funds | Returns (%) | Benchmark (%) |
| HDFC Flexi Cap Fund | 19.60 | 5.43* |
| ICICI Prudential Flexicap Fund | 10.05 | 5.95** |
| Quant Flexi Cap Fund | 12.13 | 5.43 |
(Source: AMFI; regular returns as on December 29, 2022)
(*NIFTY 500 Total Return Index; **S&P BSE 500 Total Return Index)
As one can see in the table above, HDFC Flexi Cap Fund gave a return of 19.60 percent per annum against the benchmark return of 5.43 percent.
This was followed by Quant Flexi Cap Fund that gave a return of 12.13 percent per annum, whereas ICICI Prudential flexi cap fund gave an annual return of 10.05 percent per annum.
Details of top-performing flexi cap funds:
1. HDFC Flexi cap fund: This was launched in January 2015. The mutual fund scheme is managed by Roshi Jain and Priya Ranjan. The scheme has given an annualised return of 18.49 percent per annum.
The key constituent stocks in the scheme are ICICI Bank, State Bank of India, Infosys Ltd, HDFC Bank, The Clearing Corporation of India, NTPC, Coal India, Larsen & Toubro, Bharti Airtel and HCL Technologies.
2. ICICI Prudential flexi cap fund: The scheme was launched on July 17, 2021. Its returns since launch are 11.53 percent per annum. This means if someone had invested ₹10,000, it would be ₹11,720 now.
The key constituent stocks of this mutual fund scheme are HDFC Bank, TVS Motor Company, ICICI Bank, Reliance Industries, Infosys, Bharti Airtel, Avenue Supermarts, Mahindra & Mahindra, Maruti Suzuki.
3. Quant flexi cap fund: This scheme was launched on October 2008. Its returns since launch are 13.94 percent per annum. The key constituent stocks in the scheme are Adani Ports, SBI, ITC, Kotak Mahindra Bank, RIL, NTPC, Ambuja Cements, PNB, Bharti Airtel and Indian Hotels.
(Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.)
