Mutual funds are a widely preferred investment tool for achieving long-term financial growth. Among the various types of mutual funds, Flexi Cap Mutual Funds stand out for their flexibility and potential for strong returns. If you’re looking for a dynamic investment option that adapts to market conditions, Flexi Cap Funds might be the right choice for you. Let’s dive into what these funds are, how they work, and explore some of the top performing Flexi Cap Funds in India.
According to SEBI (Securities and Exchange Board of India), these funds must invest at least 65% of their total assets in equities. This flexibility allows fund managers to take advantage of growth opportunities in different market segments, making Flexi Cap Funds a versatile option for investors.
Flexi Cap Mutual Funds are a great option for investors looking for flexibility and diversification in their portfolio. With the ability to invest across market segments, these funds can adapt to changing market conditions and aim to deliver strong returns. However, like all investments, they come with risks, so it’s important to do your research and invest wisely.
If you’re considering Flexi Cap Funds, take the time to understand your financial goals, risk appetite, and investment horizon. With the right approach, these funds can be a valuable addition to your investment strategy. Happy investing!
Disclaimer: This blog is for educational purposes only. The funds mentioned are examples and not recommendations. Mutual fund investments are subject to market risks, and past performance does not guarantee future results. Always read the scheme-related documents carefully before investing. It’s a good idea to consult a financial advisor to make informed decisions based on your financial goals and risk tolerance.
What Are Flexi Cap Mutual Funds?
Flexi Cap Mutual Funds are a type of equity fund that invests in companies of all sizes large-cap, mid-cap, and small-cap. Unlike other equity funds that focus on a specific category (like only large-cap or mid-cap), Flexi Cap Funds give fund managers the freedom to allocate investments across all market capitalizations. This means they can adjust the mix of large-cap, mid-cap, and small-cap stocks based on market trends and opportunities.According to SEBI (Securities and Exchange Board of India), these funds must invest at least 65% of their total assets in equities. This flexibility allows fund managers to take advantage of growth opportunities in different market segments, making Flexi Cap Funds a versatile option for investors.
Why Invest in Flexi Cap Mutual Funds?
- Diversification: By investing in companies of all sizes, Flexi Cap Funds spread risk across different market segments.
- Flexibility: Fund managers can shift investments between large-cap, mid-cap, and small-cap stocks based on market conditions.
- Growth Potential: These funds aim to deliver higher returns by capitalizing on opportunities in different market segments.
Top 4 Flexi Cap Mutual Funds with the Highest 1-Year Returns
Here’s a closer look at four Flexi Cap Mutual Funds that have delivered impressive returns over the past year. We’ll also see how a lump sum investment of ₹1,50,000 would have grown in each of these funds.Motilal Oswal Flexi Cap Fund
This fund has delivered a 1-year annualised return of 19.16%, making it one of the top performers in its category. With an AUM of ₹11,855 crore and an expense ratio of 0.88%, it has grown a ₹1,50,000 investment to ₹1,78,740 in just one year. The fund’s benchmark is the NIFTY 500 TRI, and it has consistently delivered strong returns since its inception in April 2014.Parag Parikh Flexi Cap Fund
Known for its consistent performance, this fund has provided a 1-year return of 14.49%. With a massive AUM of ₹89,703 crore and a low expense ratio of 0.63%, it has turned ₹1,50,000 into ₹1,71,735. The fund has a solid track record, with an annualised return of 20.1% since its launch in May 2013.360 ONE Flexi Cap Fund
This relatively new fund has already made a mark with a 1-year return of 13.03%. With an AUM of ₹1,357 crore and an expense ratio of 0.69%, it has grown ₹1,50,000 to ₹1,69,545. The fund’s benchmark is the BSE 500 TRI, and it has shown strong performance since its inception in June 2023.HDFC Flexi Cap Fund
A well-known name in the mutual fund space, this fund has delivered a 1-year return of 12.82%. With an AUM of ₹65,967 crore, it has turned ₹1,50,000 into ₹1,69,230. The fund has a long track record, with an annualised return of 16.79% since its launch in January 2013.Conclusion
Flexi Cap Funds offer a balanced approach to equity investing by diversifying across large-cap, mid-cap, and small-cap stocks. The funds listed above have shown strong performance, with 1-year returns ranging from 12.82% to 19.16%. A lump sum investment of ₹1,50,000 in these funds would have grown significantly, highlighting their potential for wealth creation.Flexi Cap Mutual Funds are a great option for investors looking for flexibility and diversification in their portfolio. With the ability to invest across market segments, these funds can adapt to changing market conditions and aim to deliver strong returns. However, like all investments, they come with risks, so it’s important to do your research and invest wisely.
If you’re considering Flexi Cap Funds, take the time to understand your financial goals, risk appetite, and investment horizon. With the right approach, these funds can be a valuable addition to your investment strategy. Happy investing!
Disclaimer: This blog is for educational purposes only. The funds mentioned are examples and not recommendations. Mutual fund investments are subject to market risks, and past performance does not guarantee future results. Always read the scheme-related documents carefully before investing. It’s a good idea to consult a financial advisor to make informed decisions based on your financial goals and risk tolerance.