Whether they acknowledge it or not, mostmutual fund investors choose schemes primarily on the basis of their past performance. It is a different matter that investment experts point out that the past returns are not a guarantee of the scheme's future performance.
Here, we list out the top-performing flexi cap mutual funds which have delivered more than 20 per centCAGR (compound annual growth rate) returns in the past five years.
At the outset, let us first understand what flexi cap mutual funds are.
Flexi cap mutual funds
Flexi cap mutual funds are the ones which offer the flexibility of investing across market capitalisation i.e., large cap, mid cap and small cap. The only threshold they have to stick to is a minimum of 65 percent of assets in the equity & equity-related instruments.
ALSO READ: Flexi-cap vs large-cap: Which mutual fund is better and why?
There are 38 schemes in this category with total assets under management (AUM) amounting to ₹3.34 lakh crore, shows the AMFI data as on Jan 31, 2024.
Among all equity-oriented schemes, this is the highest asset size followed by large-cap mutual funds, which have total assets worth ₹2.99 lakh crore.
These are the top performing flexi cap mutual funds:
| Flexi cap funds | 5-year-returns (%) | ₹1 lakh grows to |
| Quant Flexi Cap Fund | 31.34 | ₹3.90 lakh |
| JM Flexicap Fund | 23.92 | ₹2.92 lakh |
| Parag Parikh Flexi Cap Fund | 23.92 | ₹2.87 lakh |
| Franklin India Flexi Cap Fund | 20.00 | ₹2.48 lakh |
| HDFC Flexi Cap Fund | 21.11 | ₹2.60 lakh |
(Source: AMFI, returns as on Feb 21, 2024)
As we can see in the table above, the returns given by top-performing flexi cap mutual funds are in the range of 21 to 31 percent per annum. The highest annualised return of 31.34 percent was given by Quant Flexi Cap Fund, whereas the lowest return of 21.11 per cent (among the top-performing schemes) was given by HDFC Flexi Cap Fund.
This means if someone had invested ₹one lakh in Quant Flexi Cap fund five years ago, it would have grown to ₹3.90 lakh and the same investment in HDFC Flexi Cap Fund would have grown to ₹2.60 lakh.
However, investors are advised to exercise caution and view the scheme holistically and examine its worth from multiple criteria such as category it belongs to, macroeconomic factors, reputation of fund house, overall market sentiment and risk appetite of investors, among other factors.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
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Published: 22 Feb 2024, 12:56 PM IST
