Investing in mutual funds is a popular way of compounding wealth. Investors can invest their money in a plethora of funds such as equity funds, exchange-traded funds, debt-focused funds and flexi cap funds.
What Are Flexi Cap Funds?
Flexi-cap funds are a subcategory within equity mutual funds which are open-ended. These funds make allocations in stocks across different market capitalisations such as largecap, midcap and smallcap. Fund managers of such funds diversify the investments across various market capitalisations in order to aim for maximum returns while minimising the risk involved in investing. The AMFI website states that flexi-cap funds need to mandatorily invest at least 65 per cent of their investments in equity and equity-related instruments
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Data from the Association of Mutual Funds In India (AMFI) shows that as many as seven mutual fund schemes have given returns of up to 31 per cent in five years. Here’s a look at the top-performing flexi-cap funds as of December 28:
Quant Flexi-Cap Fund
The Quant Flexi-Cap Fund has given returns of 31.01 per cent in five years to investors who have invested money via Systematic Investment Plans. The fund has given returns of 32.34 per cent to lump sum investors in five years. The benchmark index tracked by the scheme is the NIFTY 500 Total Return Index. The fund has outperformed the benchmark index which has gained 19.17 per cent in five years.
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Parag Parikh Flexi-Cap Fund
The Parag Parikh Flexi-Cap Fund has given returns of 24.81 per cent in five years to investors who have invested money via Systematic Investment Plans. The fund has given returns of 25.92 per cent to lump sum investors in five years. The benchmark index tracked by the scheme is the NIFTY 500 Total Return Index. The fund has outperformed the benchmark index which has gained 19.17 per cent in five years.
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JM Flexicap Fund
The JM Flexicap Fund has gained 24.3 per cent in five years to investors who have invested money via Systematic Investment Plans. The fund has given returns of 25.54 per cent to lump sum investors in five years. The benchmark index tracked by the scheme is the BSE 500 Total Return Index. The fund has outperformed the benchmark index which has gained 19.23 per cent in five years.
HDFC Flexi-Cap Fund
The HDFC Flexi-Cap Fund has given returns 22.86 per cent in five years to investors who have invested money via Systematic Investment Plans. The fund has given returns of 23.64 per cent to lump sum investors in five years. The scheme tracks the NIFTY 500 Total Return Index. The fund has outperformed the benchmark index which has gained 19.17 per cent in five years.
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Franklin India Flexi-Cap Fund
Franklin India Flexi-Cap Fund has given returns of 22.4 per cent in five years to investors who have invested money via Systematic Investment Plans. The fund has given returns of 23.32 per cent to lump sum investors in five years. The scheme tracks the NIFTY 500 Total Return Index. The fund has outperformed the benchmark index.
PGIM India Flexi-Cap Fund
PGIM India Flexi-Cap Fund has given returns of 20.68 per cent in five years to investors who have invested money via Systematic Investment Plans. The fund has given returns of 22.71 per cent to lump sum investors in five years. The scheme tracks the NIFTY 500 Total Return Index. The fund has outperformed the benchmark index.
Edelweiss Flexi-Cap Fund
Edelweiss Flexi-Cap Fund has given returns of 20.36 per cent in five years to investors who have invested money via Systematic Investment Plans. The fund has given returns of 22.41 per cent to lump sum investors in five years. The scheme tracks the NIFTY 500 Total Return Index. The fund has outperformed the benchmark index.
Estimated Lump Sum Returns From Flexicap Funds
Given the five-year annualised returns of 22.41- 32.34 per cent a lump sum investment of Rs 10 lakh in any of the funds would be valued between Rs 75,53,861- Rs 1,64,78,258 in the 5-year period.
Estimated SIP Returns From Flexicap Funds
A monthly SIP of Rs 4,000 in any of the funds would have compounded to anywhere between Rs 4,18,164 to Rs 5,57,566 in the 5-year period. The returns would have ranged between 20.36 per cent and 31.01 per cent.
