Among the equity schemes those investors who want to diversify their portfolio across large-cap, mid-cap, and small-cap stocks can invest in Flexi Cap mutual funds for the long-term in order to get risk-adjusted steady returns only through our preferred mode Systematic Investment Plan (SIP). Flexi Cap mutual funds that invest in different market capitalization such as large-cap, mid-cap, and small-cap have consistently beaten other funds in the category, returning up to 71.43 percent in the previous year.
By reducing their exposure to risk, investors can invest in Flexi cap funds where the fund managers manage risk and return quite effectively for which Flexi cap funds are considered most suitable for investing during falling stock prices. By keeping all these factors in mind, here we have picked up best performing Flexi cap mutual funds that are not only rated high by Value Research and Morningstar but also have performed well based on the past returns of 1 to 5 years.
PGIM India Flexi Cap Fund Direct Growth
This fund has been in existence for the last 6 years, as it was launched by the fund house PGIM India Mutual Fund in February 2015. PGIM India Flexi Cap Fund Direct-Growth gains over the past year were 71.43 percent and it has generated an average yearly return of 16.74 percent since its inception, according to Value Research. The financial, technology, healthcare, chemicals, and construction sectors account for the majority of the fund's holdings. Infosys Ltd., ICICI Bank Ltd., Tata Consultancy Services Ltd., State Bank of India, and Axis Bank Ltd. are among the top five holdings of the fund.
One of the key benefits of the fund is it has a low expense ratio of 0.30% which is lower than other funds in the same category. The fund has Rs 1,371 Crore in assets under management (AUM) and a current NAV of Rs 26.88 as of July 22, 2021. A minimum monthly contribution of Rs 1000 is required to start a SIP in this fund, and the fund imposes an exit fee of 0.5 percent if units exceeding 10% are redeemed within 90 days of the investment.
Parag Parikh Flexi Cap Fund Direct Growth
PPFAS Mutual Fund's Parag Parikh Flexi Cap Fund Direct-Growth is a multi-cap mutual fund scheme that has been around for eight years, having been established in May of 2013. The 1-year returns of Parag Parikh Flexi Cap Fund Direct-Growth are 58.89 percent. According to Value Research, it has provided an average yearly return of 21.14 percent since its inception. The fund has its equity sector allocation across technology, financial, services, automobile, and fast-moving consumer goods sectors.
Alphabet Inc Class A, Bajaj Holdings & Investment Ltd., ITC Ltd., Microsoft Corporation (US), and Facebook Co. are the fund's top five holdings. The fund has a 0.89 percent expense ratio, which is comparable to other funds in the same category. As of July 22, 2021, the fund has Rs 11,360 crore in assets under management (AUM) and a current NAV of Rs 47.78. To commence a SIP in this fund, a minimum monthly contribution of Rs 1000 is required. If redeemed within 365 days, the fund imposes a 2% exit load; if redeemed after 365 days but on or before 730 days, the fund levies a 1% exit load.
UTI Flexi Cap Fund Direct Growth
UTI Flexi Cap Fund Direct-Growth is a multi-cap mutual fund strategy introduced by UTI Mutual Fund in January 2013. According to Value Research, UTI Flexi Cap Fund Direct-Growth returns for the previous year were 64.93 percent, and from its inception, it has generated an average yearly return of 17.23 percent. The Financial, Healthcare, Technology, Services, and Chemicals sectors account for the bulk of the fund's holdings. HDFC Bank Ltd., Bajaj Finance Ltd., Larsen & Toubro Infotech Ltd., Housing Development Finance Corpn. Ltd., and Kotak Mahindra Bank Ltd. are the fund's top five holdings.
The fund's expense ratio is 1.2 percent, which is much higher than that of other funds in the same category. The fund has Rs 19,579 crore in assets under management (AUM) and a current NAV of Rs 246.99 as of July 22, 2021. A minimum monthly investment of Rs 500 is required to start a SIP in this fund. If more than 10% of the fund's investments are redeemed within one year, the fund levies a 1% exit load.
Canara Robeco Flexi Cap Fund Direct Growth
Canara Robeco Flexi Cap Fund Direct-Growth is a multi cap mutual fund scheme launched by the fund house Canara Robeco Mutual Fund. This fund has been around for eight years, having started in January of 2013. According to Value Research, Canara Robeco Flexi Cap Fund Direct-Growth returns for the previous year were 50.85%, and it has generated 15.48 percent average annual returns since inception. The fund has its equity sector allocation across the Financial, Technology, Automobile, Energy, Healthcare sectors. Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Tata Consultancy Services Ltd., and Reliance Industries Ltd. are the fund's top five holdings as of now.
The major reason you should choose this fund is that it has a low expense ratio of 0.6 percent, which is lower than most other funds in the same category. As of July 22, 2021, the fund has Rs 4,813 crore in assets under management (AUM) and a current NAV of Rs 220.65. The fund charges an exit load of 1% if units are redeemed within 1 year of investment. One can start SIP in this fund with a minimum amount of Rs 1000.
Top Performing Flexi Cap Mutual Funds In 2021
Based on the historical returns and ratings given by the two leading agencies i.e. Value Research and Morningstar, here are the best flexi cap mutual funds to start SIP in 2021.
|Funds||1-Year Returns||3-Year Returns||5-Year Returns||Rating by Value Research||Rating by Morningstar|
|PGIM India Flexi Cap Fund Direct Growth||71.43%||25.23%||20.47%||5 star||5 star|
|Parag Parikh Flexi Cap Fund Direct Growth||58.89%||23.29%||21.48%||5 star||5 star|
|UTI Flexi Cap Fund Direct Growth||64.93%||19.02%||17.76%||5 star||5 star|
|Canara Robeco Flexi Cap Fund Direct Growth||50.85%||18.63%||18.00%||4 star||4 star|
Should You Invest?
We at Goodreturns always suggest our readers to invest in mutual funds only through SIP mode to maximize returns. By keeping this factor in mind we would like to make you clear that, across the last 3 to 5 years Flexi Cap mutual funds have really performed well. According to Value Research, flexi cap mutual funds have provided average SIP returns of 25.71 percent over the previous three years and 16.85 percent over the last five years. If we look at the previous 1-year returns of flexi cap funds, we can see that they have the potential to outperform the top-performing large-cap funds in the long run.
Having any of the above-discussed flexi cap funds in your portfolio can proactively adjust to a blend of market conditions, as it is well known for excelling over market movements. In comparison to a mid-cap or small-cap fund, putting money in a flexi cap fund is less volatile. Considering the current market scenario, Flexi Cap fund is an attractive bet to invest in through SIP if you have a financial goal of 5 years or more.
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