Before investing in a mutual fund scheme, investors tend to evaluate the past few years’ returns of that scheme and compare them with those of other schemes under the same category.
Although there are several factors that ought to be evaluated before investing your hard-earned money into a mutual fund scheme, the past returns are too important to overlook.
Here, we give you the lowdown on the top-performing flexi-cap mutual fund schemes that delivered more than 15 percent compounded returns in the past five years.
At the outset, we explain what exactly are flexi-cap mutual funds.
What are flexi cap funds?
Flexi-cap funds are a type of mutual fund that invest in securities across market capitalisation i.e., small cap, mid cap and large cap. In these funds, 65 per cent of the total funds are to be invested in the equity of stocks falling in different categories.
Unlike multi cap funds, these funds are not obligated to invest a minimum of 25 percent in each category: small cap, mid cap and large cap.
The flexi cap mutual fund schemes that gave the highest returns in the past five years are Parag Parikh Flexi Cap Fund, PGIM India Flexi Cap Fund and Quant Flexi Cap Fund.
| Flexi cap MF schemes | 5-year-returns (%) |
| Quant Flexi Cap Fund | 18.40% |
| Parag Parikh Flexi Cap Fund | 15.92% |
| PGIM India Flexi Cap Fund | 15.11% |
(Source: AMFI; direct returns as on Jan 9, 2023)
As we can see in the table above, the past five-year returns of these fund schemes were more than 15 percent. The highest 5-year-returns were given by Quant Flexi Cap Fund that delivered compounded returns of 18.40 percent per annum, whereas the lowest returns (among these three) of 15.11 percent were given by PGIM India Flexi Cap Fund.
However, the past one and three-year returns tell a slightly different story.
Let us examine the returns of these top-performing flexi cap funds across other tenors.
| Flexi cap mutual fund schemes | 1-year-returns (%) | 3-year-returns (%) |
| Parag Parikh Flexi Cap Fund | -5.45 | 22.14 |
| PGIM India Flexi Cap Fund | -6.05 | 24.08 |
| Quant Flexi Cap Fund | 11.06 | 38.40 |
(Source: AMFI; direct returns as on Jan 9, 2023)
As one can see from the table above, the past three-year returns were higher than those of past five years. The highest 3-year compounded returns of 38.40 percent were given by Quant Flexi Cap Fund, while Parag Parikh Flexi Cap Fund delivered 22.14 percent return in the past three years.
As far as one-year returns are concerned, only Quant Flexi Cap fund delivered positive returns of 11.06 percent whereas the other two top-performing fund schemes gave negative returns.
