Top 7 Flexi Cap Mutual Funds:Flexi cap funds are included in the most popular category of equity mutual funds. As their name suggests, flexi cap funds provide an opportunity to invest in different categories of stocks according to market cap, which gives investors the hope of getting more profit. Also, the balance of risk and return is also better. Here we are giving information about those top 7 flexi cap funds, which have given annual returns of 25% to 37% in the last 5 years. Along with this, we will also understand whether investing in them will be right for you or not according to the risk-return balance.
What are Flexi Cap Funds?
Flexi cap mutual funds are a category of equity funds in which the fund manager has complete freedom to invest in large cap, mid cap and small cap companies. This means that the fund manager can invest in companies of any market cap, whether large or small. This flexibility allows funds to change their portfolio according to market conditions. As per SEBI’s definition, at least 65% of the portfolio of a flexi cap fund should be invested in equities at all times.
Also read: Top Multi Cap Funds: Top multi-cap funds giving more than 25% annual return, why should retail investors invest in them?
Top 7 Flexi Cap Funds and their Returns
Here are the details of the top 7 flexi cap funds that have performed well in the last 5 years and have given returns ranging from 25 to 37%. Along with this, the benchmark index of each scheme and its 5-year return data are also given. The special thing is that all these schemes have performed well in comparison to their benchmarks.
1.Quant Flexi Cap Fund
5 Year Average Annual Return (Direct Plan): 37.88 %
5 Year Average Annual Return (Regular Plan): 29.28 %
Benchmark : NIFTY 500 Total Return Index (5 Year Return 22.85%)
Asset Under Management (AUM): Rs 7,714.45 crore
2. JM Flexicap Fund
5 Year Average Annual Return (Direct Plan): 29.28 %
5 Year Average Annual Return (Regular Plan): 28.05 %
Benchmark : BSE 500 Total Return Index (5 Year Return 23.00 %)
Asset Under Management (AUM): Rs 4,378.53 crore
3. Parag Parikh Flexi Cap Fund
5 Year Average Annual Return (Direct Plan): 27.19 %
5 Year Average Annual Return (Regular Plan): 26.06 %
Benchmark : NIFTY 500 Total Return Index (5 Year Return 22.85%)
Asset Under Management (AUM): Rs 80,443.01 crore
Also read: HDFC MF NFO: What are the features of HDFC Mutual Fund’s latest NFO, who should invest?
4. PGIM India Flexi Cap Fund
5 Year Average Annual Return (Direct Plan): 26.11 %
5 Year Average Annual Return (Regular Plan): 23.97 %
Benchmark : NIFTY 500 Total Return Index (5 Year Return 22.85%)
Asset Under Management (AUM): Rs 6,655.46 crore
5. Franklin India Flexi Cap Fund
5 Year Average Annual Return (Direct Plan): 25.99 %
5 Year Average Annual Return (Regular Plan): 25.04 %
Benchmark : NIFTY 500 Total Return Index (5 Year Return 22.85%)
Asset Under Management (AUM): Rs 18,041.50 crore
6. HDFC Flexi Cap Fund
5 Year Average Annual Return (Direct Plan): 25.71 %
5 Year Average Annual Return (Regular Plan): 24.93 %
Benchmark : NIFTY 500 Total Return Index (5 Year Return 22.85%)
Asset Under Management (AUM): Rs 65,044.24 crore
7. Edelweiss Flexi Cap Fund
5 Year Average Annual Return (Direct Plan): 25.60 %
5 Year Average Annual Return (Regular Plan): 23.48 %
Benchmark : NIFTY 500 Total Return Index (5 Year Return 22.85%)
Asset Under Management (AUM): Rs 2,388.97 crore
Also read: HDFC Mutual Fund’s retirement plan gave the best return in 5 years, this is how a fund of Rs 16 lakh was created with an SIP of Rs 10,000
Benefits of investing in Flexi Cap Funds
There are several advantages of investing in flexi cap funds that make it attractive for investors:
1. Diversification: By investing in flexi cap funds, your money is invested by dividing it across different categories of shares, thereby reducing the risk.
2. Flexibility: The fund manager of flexicap funds has the freedom to invest in companies of any size, which increases the possibility of earning better returns by changing the portfolio according to market conditions.
3. Dynamic Asset Allocation: The fund manager can change the investment ratio in large cap, mid cap and small cap depending on the market conditions.
Also read: SIP Magic: The magic of compounding! HDFC Large and Mid Cap Fund made Rs 1.20 crore from a SIP of Rs 2000
Risk-Return Balance
The risk level of flexi cap funds is very high, which is an important aspect for investors. If you are an aggressive investor and can invest for a long time, then flexi cap funds can be a good option for you. However, being a high risk fund, these funds are not suitable for investors who are looking for a low-risk option or want to invest for a short period of time.
Also read: Mutual Fund Toppers: 14 champions of equity funds! These schemes gave the highest returns in their category in 5 years
Should you invest in flexi cap funds?
Investing in flexi cap funds gives you the benefit of diversified investment in large, mid and small cap companies. If you want to invest for the long term i.e. at least 5 years and can maintain the investment amid market fluctuations, then flexi cap funds can be an attractive investment option. But before taking any decision, you must consider your investment goals, risk taking capacity and the advice of a financial advisor.
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment in any scheme. Past returns of equity mutual funds cannot be considered as a guarantee of similar performance in future. Take any investment decision only after consulting your investment advisor.)
