- Date : 19/10/2023
- Read: 4 mins
A look at some of the top-performing flexi-cap funds over the years. The average returns they have generated at regular intervals are quite convincing.
Large-cap mutual funds (MFs) are steady and safe. The risk and reward increase as you delve into mid-cap, and even more if you invest in small caps. But not all the time. Choose one market cap and you may find another rallying. Here come flexi-cap funds that have the freedom to switch between stocks from different market caps with ease.
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Flexi-cap funds can invest across different market caps.
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Investments can be made in a lump sum or as an SIP.
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Top flexi-cap MFs deliver around 20% annual returns over five years.
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The expense ratio of these funds is generally more than 0.9%.
Here are some of the best flexi-cap mutual funds to invest in 2023.
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JM Flexi Cap Fund
This flexi-cap fund has 98% domestic equity investment with a large, mid and small-cap allocation of 44%, 18% and 15%, respectively.
Returns –
- 1-year – 33.4%
- 3-year – 32%
- 5-year – 20.4%
- 10-year – 19.8%
- Expense ratio - 0.96%
Also Read: Investing Synergy: Why Small-Cap Funds Thrive With Large-Cap Partners
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HDFC Flexi Cap Fund
It has an 89.5% allocation in domestic equity investments. 23% of this fund is allocated between ICICI Bank, HDFC Bank and SBI. Its large, mid and small-cap allocations are 64%, 6% and 4%, respectively.
Returns –
- 1-year – 25%
- 3-year – 34%
- 5-year – 18%
- 10-year – 18%
- Expense ratio - 0.94%
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Quant Flexi Cap Fund
This fund has an enviable long-term return and a 67.6% exposure to domestic equity investment. Its large, mid and small-cap allocations are around 32%, 14%, and 13%, respectively. Interestingly, the fund has completely exited from major banking stocks, including Kotak, ICICI, and HDFC Bank, in the last month.
Returns –
- 1-year – 21%
- 3-year – 35.3%
- 5-year – 25.5%
- 10-year – 24.3%
- Expense ratio - 0.77%.
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Parag Parikh Flexi Cap Fund
The fund has 70.6% domestic equity investment, with large, mid and small-cap allocations being 50%, 5% and 6%. It has invested in leading foreign stocks like Alphabet, Microsoft, Facebook and Amazon.
Returns –
- 1-year – 25.6%
- 3-year – 24%
- 5-year – 21.5%
- 10-year – 20%
- Expense ratio - 0.66%
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Franklin India Flexi Cap Fund
About 90.9% of this fund's allocation is in domestic equity investments. The large, mid and small-cap exposure of this fund is 60%, 10% and 7%, respectively. The scheme has invested heavily in private-sector banks (22.9%)
Returns –
- 1-year – 23.5%
- 3-year – 29.8%
- 5-year – 17.3%
- 10-year – 18%
- Expense ratio - 0.96%
Conclusion
Analysts rate flexi caps, and most equity-heavy funds, as risky due to the high market exposure. However, the significant return generated by these funds compensates for the inherent risk. While selecting your flexi-cap MF, make sure you compare the expense ratio, check the manager’s track record, and verify the offer documents of the schemes. Along with it, you should also consider your risk appetite and present portfolio, and accordingly invest in your preferred flexi-cap mutual fund scheme.
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Also Read: How India’s Oldest Mutual Funds Have Beaten The Markets?
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
