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Business News/ Mutual Funds / These 8 flexi cap mutual fund schemes gave over 16 percent annualised returns in 10 years
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These 8 flexi cap mutual fund schemes gave over 16 percent annualised returns in 10 years

The annualised returns given by flexi cap funds hover in the range of 16-23 percent per annum. The highest returns of 23.85% were delivered by Quant Flexi Cap fund. So, if someone invested ₹one lakh 10 years ago, it would have grown to ₹8.49 lakh.

Returns for a year may not matter much, but when compounding comes into play, the returns over a number of years increase substantiallyPremium
Returns for a year may not matter much, but when compounding comes into play, the returns over a number of years increase substantially

Before investing in a mutual fund scheme, retail investors tend to compare the returns given by one scheme vis-à-vis other schemes in the same category in order to maximise their wealth creation.

Although historical returns are no guarantee of any scheme’s future returns, still investors prioritise them over an interplay of several factors such as the reputation of fund house, macroeconomic factors and the category of scheme.

Compounding works

Returns for a year may not matter much, but when compounding comes into play, the returns over a number of years increase substantially. As they say ‘proof of the pudding is in the eating’. So, we demonstrate the power of compounding by examining the returns delivered by flexi cap funds over a 10-year-period. 

ALSO READ: These ELSS mutual funds gave over 20 percent annualised returns in the past five years. Check details

Here, we assess the returns delivered by flexi-cap mutual funds in the past 10 years and see how the investment sum appreciates in a 10-year period when the compound annual growth rate (CAGR) returns are over 16 percent.

Flexi cap funds                            10-year-returns (%)  one lakh becomes (Rs)
Quant Flexi Cap Fund                                              23.858.49
Parag Parikh Flexi Cap Fund                                       19.565.96
JM Flexicap Fund                                                            19.475.92
Franklin India Flexi Cap Fund                                     17.294.92
HDFC Flexi Cap Fund                                                    17.444.99
Aditya Birla Sun Life Flexi Cap Fund                               16.904.76
SBI Flexicap Fund                                                        16.754.70
DSP Flexi Cap Fund                                                       16.524.61

(Source: AMFI, returns as on May 21, 2024)

As we can see in the table above, the annualised returns given by flexi cap funds hover in the range of 16-23 percent. The highest returns of 23.85 percent were given by Quant Flexi Cap fund. This means if someone had invested one lakh 10 years ago, it would have grown to 8.49 lakh.

Investment in other schemes would have swelled to 5.92 lakh (Parag Parikh flexi cap), 5.96 (JM Flexi Cap), 4.92 (Franklin India Flexi cap) and 4.99 lakh (HDFC Flexi cap).

On the other extreme, the lowest returns (among the top performing schemes only) of 16.52 percent were delivered by DSP Flexi Cap Fund. This means an investment of one lakh would have grown to 4.61 lakh.

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 Mar 2024, 06:10 PM IST
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