Top-5 funds of Flexi CAP, made 3 lakhs for 1 lakh

Top-5 flexi cap funds: The continuing ups and downs in the market has raised concerns among investors. In such a situation, investors are looking for an option that can not only handle the market lifting, but also give better returns in the long term. Experts say that at present, Flexi Cap Funds can become a great option for investors due to their flexibility and diversification. In December, these funds invested Rs 4,730.71 crore. In the last five years, Flexi Cap Funds have given a spectacular return of 20-30% to investors, that is, these funds have increased the money of investors more than doubled.

Flexi CAP: Investors’ money increased more than double, got up to 30% returns

Talking about the performance of Flexi Cap Funds, the top-5 Flexi Cap has given investors a return of about 20-30% in the last five years. Among them, Quant Flexi Cap Fund Scheme has given the highest returns of 30.43%. In this scheme, if someone had invested a lamp of Rs 1 lakh five years ago, then today its value is more than Rs 3.71 lakh. In this way, the investor would have benefited more than Rs 2.71 lakh.

The average returns of Flexi Cap Funds on an annual basis have been 14%. The average return of these funds in the last three years has been 13% and 16.5% in five years.

Let us understand through mutual fund calculations that if an investor had invested 1 lakh in these top-5 Flexi Cap Funds five years ago, how much his value would have been today.

S.no	Flexi Cap Fund	5 year return (%)	Total Value (In Lakh)
1	Quant flexi cap fund	30.43	3,71,293
2	Parag Parikh Flexi Cap Fund	23.69	2,89,516
3	Jm flexicap fund	23.08	2,82,447
4	HDFC Flexi Cap Fund	21.96	2,69,828
5	Franklin India Flexi Cap Fund	20.80	2,57,238

Source-AMFI (based on NAV of January 20, 2025)

Note- Previous performance of mutual fund schemes is not guaranteed future returns.

Also read: SEBI’s big step for small investors, proposal to start SIP of ₹ 250

What is Flexi Cap Mutual Fund?

According to market regulator SEBI rules, Flexi Cap Mutual Funds are equity funds that are mandatory to invest at least 65% of their corpuses in equity and equity related instruments. The specialty of Flexi Cap Funds is that they can invest in equity between large-cap, mid-cap and small-cap, without a particular limit.

These equity mutual fund schemes are open-ended and give the fund manager the freedom to choose companies with different market capitalizations in different sectors.

There is no restriction of company size or type on investment of flexi cap mutual funds. The versatile approach of this fund makes it an attractive investment option for investors.

Investing in Flexi Cap in the market picking up a beneficial option

CEO and CFA Mohit Gang of Moneyfront say that in view of the market fluctuations at the present time, fund managers should decide which of the safe option from large, mid or small cap. The Flexi Cap Fund is better in this case as it gives fund managers to invest in any market cap, sector or style.

Flexi cap fund is more beneficial than multi -cap funds. According to the rule in multi -cap fund, it is necessary to invest 25% money in large, mid and small cap. This reduces the freedom of fund managers and makes it more risky.

Currently, Flexi Cap Funds are mostly moved to large cap, making them less unstable and attractive to investors.

Also read: Interview: The right time to increase investment amid market declines- Trideep Bhattacharya

Benefits of Investment in Flexi Cap Mutual Fund

There are many advantages of investing in Flexi Cap Mutual Fund. Some of the major benefits are mentioned here:

Diversification: Through the Flexi Cap Funds, your money is divided between different risk and returns stocks.

Flexibility: These funds have freedom of investment in companies of any size and various sectors and market capitalization. Due to comprehensive investment options, fund managers have the facility to buy and sell more stocks to get better returns.

Dynamic Asset Allocation: Flexi cap mutual funds can adjust the allocation between large, mid and small-cap stocks based on the current conditions of the market. This favorable approach helps the fund to maximize returns according to changing market conditions.

Professional Management: You can take advantage of the experience and knowledge of professional fund managers by investing in flexi cap mutual funds.

First Published – January 24, 2025 | 5:16 PM IST

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