OPEN APP
Home / Mutual Funds / News /  4 flexi cap funds rated 5-star by Value Research with low expense ratio

4 flexi cap funds rated 5-star by Value Research with low expense ratio

Myriad macroeconomic variables such as the Russia-Ukraine conflict, global policy interventions, significant inflationary tension, and rising fuel costs have made the Indian equity market very turbulent in recent months.Premium
Myriad macroeconomic variables such as the Russia-Ukraine conflict, global policy interventions, significant inflationary tension, and rising fuel costs have made the Indian equity market very turbulent in recent months.

The Indian equity market appears to be upbeat at this moment, as short to mid-term volatility will continue to contribute to output reversal, and during this time a long-term equity investor's mutual fund portfolio should include diversified equity funds, therefore flexi cap funds are worth considering.

Listen to this article

Myriad macroeconomic variables such as the Russia-Ukraine conflict, global policy interventions, significant inflationary tension, and rising fuel costs have made the Indian equity market very turbulent in recent months. Apart from increased bond rates, ongoing outflows by foreign institutional investors (FII) and the rise of geopolitical tensions such as global supply interruptions may keep the market volatile in the medium term. Considering equity markets in FY22 sustained their good pace, now is the optimum time to start investing in little amounts and avoid lump sum investments in the current or recent dip. In FY22, small-cap and midcap funds beat the other categories considerably by giving an average return of over 100%, which results that having a diversifying portfolio would be a safer side for the mid to long term. 

Almost all domestic key equity indices are currently performing in the red zone, with broad indices such as midcap and small-cap indexes ending modestly higher. Today, the S&P BSE Midcap index closed with a 1.98 per cent upside gap, while the S&P BSE Small-Cap index closed with a 2.13 per cent upside gap. Nifty 50 TRI which ended today with an upside gap of 2.89% has delivered 15% CAGR returns over the last 20 years, making it one of the greatest assets for long-term investors. 

The Nifty 50 Index is now trading at 22.01 trailing PE, which is closer to its 10-year average of 23.69 times P/E, when P/B is 4.37. The Indian equity market appears to be upbeat at this moment, as short to mid-term volatility will continue to contribute to output reversal, and during this time a long-term equity investor's mutual fund portfolio should include diversified equity funds, therefore flexi cap funds are worth considering. As a consequence, we've compiled a list of flexi cap funds with a 5-star rating from Value Research that can be invested via SIP with an emphasis on long-term wealth generation rather than lump sum investment.

Canara Robeco Flexi Cap Fund Direct Plan Growth

Value Research has given Canara Robeco Flexi Cap Fund Direct Plan Growth a 5-star rating, and the fund was established on September 16, 2003. As of 31/03/2022, Canara Robeco Flexi Cap Fund Direct-Growth has 7,256 crores in assets under management (AUM) and a net asset value (NAV) of 199.52 as of 19th May 2022. Canara Robeco Flexi Cap Fund Direct-Growth has a low expense ratio of 0.48 per cent, and its 1-year returns are 6.34 per cent, 2-year returns are 32.56 per cent, and it has provided 13.74 per cent average annual returns since its inception. The fund invests in financial, technology, energy, healthcare, automobiles, and other sectors. ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., and Bajaj Finance are the fund's top five holdings. The fund's 5-Year annualized SIP return has been 14.76 per cent, 3 Year SIP return was 16.48 per cent, 2 Year SIP return was 12.34 per cent, and 1 Year SIP return was -13.07 per cent. The fund's 5-Year absolute return was 44.65 per cent, 3 Year absolute return was 27.57 per cent, 2 Year absolute return was 13.08 per cent, and 1 Year absolute return was -7.16 per cent.

IIFL Focused Equity Fund - Direct Plan - Growth

Value Research has given this fund a 5-star rating, and it was founded on October 24, 2014. As of 31/03/2022, the IIFL Focused Equity Fund Direct-Growth has 2,835 crores in assets under management (AUM) and a NAV of 28.63 as of 19th May 2022. The fund has a low expense ratio of 0.9 per cent, and its 1-year returns are 7.95 per cent, compared to 7.17 per cent for the BSE 500 TRI benchmark, and the fund has provided 14.90 per cent average annual returns since its inception. Financial, Technology, Automobile, Energy, and Healthcare sectors are all represented in the fund's sector allocation. ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., and State Bank of India are the fund's top five holdings. The fund's five-year annualised SIP return was 17.26%, three-year SIP return was 18.05%, two-year SIP return was 13.4 per cent, and one-year SIP return was -14.84 per cent. The fund's 5-year absolute return was 53.82 per cent, its 3-year absolute return was 30.43 per cent, its 2-year absolute return was 14.23%, and its 1-year absolute return was -8.16 per cent.

Parag Parikh Flexi Cap Fund Direct Growth

Value Research has given Parag Parikh Flexi Cap Fund Direct Growth a 5-star rating. The fund was established on May 24, 2013, and as of 31/03/2022, Parag Parikh Flexi Cap Fund Direct-Growth has 21,768 crores in assets under management (AUM) and as of MAY 19, 2022, the fund's current NAV is 47.55. The fund has a low expense ratio of 0.79 per cent, and its 1-year returns are 10.71 per cent, compared to 7.02 per cent for the Nifty 500 TRI benchmark, and it has provided 18.93 per cent average annual returns since its inception. The fund invests in financial, services, technology, consumer staples, automobiles, and other sectors. ITC Ltd., Bajaj Holdings & Investment Ltd., Alphabet Inc Class A, Microsoft Corporation (US), and Amazon.com Inc. are the fund's top five holdings (USA). Five-year annualised SIP returns were 19.97%, three-year SIP returns were 23.23 per cent, two-year SIP returns were 17.65 per cent, and one-year SIP returns were -9.52 per cent for the fund. The fund's 5-year absolute return was 64.31 per cent, its 3-year absolute return was 40.18 per cent, its 2-year absolute return was 18.89 %, and its 1-year absolute return was -5.19 per cent.

PGIM India Flexi Cap Fund Direct Growth

Value Research has given PGIM India Flexi Cap Fund Direct Growth a 5-star rating, and the fund was established on 04-Mar-15. As of 31/03/2022, PGIM India Flexi Cap Fund Direct-Growth had 4,179.77 crores in assets under management (AUM) and a NAV of 25.52 as of 19th May 2022. The fund has a low expense ratio of 0.44 per cent, and its 1-year direct-growth returns are 5.67 per cent, compared to 7.02 per cent for the Nifty 500 TRI benchmark, and it has provided 13.87 per cent average annual returns since its inception. The majority of the fund's assets are allocated to the financial, capital goods, technology, chemicals, and materials sectors. Infosys Ltd., HDFC Bank Ltd., Axis Bank Ltd., Mphasis Ltd., and Bharti Airtel Ltd. are the fund's top five holdings. The fund's annualised SIP return over five years was 19.12 per cent, three years was 23.65 percent, two years was 17.08 per cent, and one year was -15.67 per cent. The fund's 5-year absolute return was 60.96 per cent, its 3-year absolute return was 40.99 per cent, its 2-year absolute return was 18.26%, and its 1-year absolute return was -8.63 per cent.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout