While the markets have been gradually rising, new investors with a modest risk appetite and long-term financial goals can create wealth by investing in best-performing flexi cap mutual funds. According to SEBI, these equity funds are open-ended with dynamic in nature and are mandated to invest a minimum of 65 percent of their total assets in equity and equity-related securities. To enhance long-term returns, fund managers of these funds adjust market cap allocations depending on large, mid, or small-cap categories across multiple market sectors and best-performing companies.
These funds blend risk and return, and with a well-diversified portfolio, can provide risk-adjusted returns over the long term. Amid turbulent and negative market conditions, these funds allocate to best performing large caps regardless of the size of the companies to achieve consistent returns and during a bull market, these funds hold a strong diversification across alternative segments, allowing investors to initiate SIPs at any time.
In your portfolio, these funds can provide steady and inflation-beating returns and safety by minimizing risk and unpredictability in the long term, thanks to their flexible allocation approach. Based on CRISIL's ranking of 1 as of June 30, 2021, we've selected 2 best performing flexi cap funds that can be featured in your portfolio if you have a 5-year financial objective and wish to generate wealth through equity.
PGIM India Flexi Cap Fund Direct Growth
This fund is a multi-cap mutual fund scheme founded by the fund house PGIM India Mutual Fund in the year 2015. According to Value Research, PGIM India Flexi Cap Fund Direct-Growth returns over the previous year have been 74.19 percent, with an average annual return of 17.60 percent since its debut. The fund has a 0.22 percent expense ratio, which is lower than most other funds in the same category.
The fund has major equity sector allocation across Financial, Technology, Healthcare, Construction, Chemicals sectors. ICICI Bank Ltd., Infosys Ltd., Alkem Laboratories Ltd., State Bank of India, and Larsen & Toubro Ltd. are the fund's top five holdings. The fund's Net Asset Value (NAV) is Rs 28.95 as of September 21, 2021, and its Asset Under Management (AUM) is Rs 2,030.64 Cr. If you withdraw more than 10% of your investment within 90 days, the fund will charge you a 0.5 percent exit load. SIPs in this fund can be started with as little as Rs 1000 per month.
UTI Flexi Cap Fund Direct Growth
It is a multi-cap mutual fund scheme offered by UTI Mutual Fund, which has been in operation for the past eight years. According to Value Research, UTI Flexi Cap Fund Direct-Growth returns over the last year have been 73.71 percent, with an average annual return of 18.42 percent since its debut. The fund's expense ratio is 1.09 percent, which is higher than the expense ratio charged by most other funds in the same category. CRISIL has given UTI Flexi Cap Fund Direct-Growth a 1-star rating, whereas Value Research and Morningstar have given it a 5-star rating, indicating its potential to provide returns in the long term.
The major equity allocation of the fund is diversified across Financial, Healthcare, Technology, Services, Chemicals sectors. Bajaj Finance Ltd., HDFC Bank Ltd., Larsen & Toubro Infotech Ltd., Housing Development Finance Corpn. Ltd., and Kotak Mahindra Bank Ltd. are the fund's five best holdings. As of September 21, 2021, the fund's Net Asset Value (NAV) is Rs 277.01 and its Asset Under Management (AUM) is Rs 22,591.88 Cr. The fund charges an exit load of 1% if units more than 10% of the investments are liquidated within 1 year of the purchasing date. With a minimum monthly contribution of Rs 500, one can start SIP in this fund.
Best Performing Flexi Cap Funds In 2021
Based on earlier performance and ratings assigned by different leading agencies, we have selected the best performing flexi cap mutual funds based on our own analysis and research.
|Funds||1-month returns||6-month returns||1-year returns||3-year returns||5-year returns||Rating by CRISIL||Rating by Value Research||Rating by Morningstar|
|PGIM India Flexi Cap Fund||4.47%||31.65%||74.19%||29.12%||21.03%||1||5 star||5 star|
|UTI Flexi Cap Fund Direct Growth||7.55%||26.51%||73.71%||24.50%||19.71%||1||5 star||5 star|
The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice to buy or sell stocks, gold, currency, or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in