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Business News/ Mutual Funds / These six flexi-cap mutual funds beat benchmark index in past three years: Should you invest?
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These six flexi-cap mutual funds beat benchmark index in past three years: Should you invest?

Flexi-cap mutual funds are completely flexible in determining the proportion of their asset allocation between large, mid and small-cap stocks. These schemes also invest a minimum of 65 per cent of assets in equity and equity-related instruments.

Quant Flexi Cap gave a 32.96 per cent annualised return followed by JM Flexi cap which delivered a 27 per cent return.Premium
Quant Flexi Cap gave a 32.96 per cent annualised return followed by JM Flexi cap which delivered a 27 per cent return.

When retail investors decide to invest in a mutual fund scheme, they consider a slew of factors ranging from the past performance of fund managers to the reputation of the fund house, and from the macro-economic scenario to the category of the scheme.

However, one key concern that can swing an investor's decision in one direction or another is the historical returns given by the fund scheme, compared to similar schemes in the same mutual fund category.

Here, we examine the past three years' returns given by flexi-cap mutual funds and shortlist the ones that managed to beat the benchmark index returns.

At the outset, let us understand what exactly are flexi-cap funds.

Flexi-cap mutual funds

These mutual funds are totally flexible in determining the proportion of their asset allocation between large, mid and small-cap stocks. These are schemes which invest a minimum of 65 per cent of assets in equity and equity-related instruments. Unlike multi-cap mutual funds, they are not meant to allocate a minimum of 25 per cent of assets to each of the three categories of market capitalisation: large, mid and small-cap stocks.

These are the top-performing flexi-cap schemes which have given exceptionally high annualised returns for the past three years.

Flexi cap funds                                                                   Returns (%) Benchmark (%)
Quant Flexi Cap Fund                                              32.9619.62
JM Flexicap Fund                                                          27.1119.59
HDFC Flexi Cap Fund                                                         26.7319.62
Parag Parikh Flexi Cap Fund                                        21.6619.62
Edelweiss Flexi Cap Fund                         20.46 119.62
Edelweiss Flexi Cap Fund                                                    20.4619.62

(Source: AMFI; returns as on April 8, 2024)

As we can see in the table above, Quant Flexi Cap gave a 32.96 per cent annualised return followed by JM Flexi cap which delivered a 27 per cent return.

HDFC Flexi Cap gave a 26 per cent annualised return, followed by Parag Parikh Flexi Cap, which gave a 21 per cent return.

However, it is vital to note that the past returns do not guarantee the future returns. So, even if a scheme gave impressive returns in the past one, two or even three years, it might not perform in the subsequent years. Similarly, a scheme that did not deliver good returns in the past few years may start delivering in the immediate or medium-term future.

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: 09 Apr 2024, 06:00 PM IST
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