Best Flexi Cap Funds: Top Performing Schemes In 2023

Flexi cap funds are diversified equity mutual funds investing across the entire market cap spectrum. There are six schemes that have given returns upto 40.25%. Flexi cap category was introduced in 2019 and SEBI mandated that the portfolio can freely invests in small cap, mid cap and large cap stocks.

Among the equity mutual funds, flexi cap mutual funds are considered to be risky, but it invests across the market cap and diverse sectors, so the risk is highly mitigated. Fund managers choose stocks of companies that have a growth potential, irrespective of the size. Usually they are market and sector agnostic. Large caps are stable, mid caps and small caps are for extra growth are held in the portfolio.

Flexi cap equity mutual funds are known to deliver stable returns even in bear market conditions, as the fund manager tries to balance the risk and returns in the portfolio. He assess the fund allocation and switches between different companies and sectors depending on the performance from time to time.

Investing in an equity fund means investing in risk, as the returns are market driven involving volatility. It is suitable for investors who want to bet on equity with less risk and for a minimum investment period of 3 to 5 years.

In the last 3-years the average category has generated 19.26% returns. Top 6 schemes have given higher returns than the average category returns over the same period. Following are the details given below.

Scheme Name	6-month returns (%)	1-year returns (%)	3-year retruns (%)	5-year returns (%)	Crisil Ranking
HDFC Flexi Cap Fund	01.69	17.70	27.11	14.19	Rank 1
J M Flexi Cap Fund	00.19	13.79	19.85	14.03	Rank 1
Franklin India Flexi Cap Fund	-02.01	07.83	23.80	12.30	Rank 2
PGIM India Flexi Cap Fund	-04.49	00.80	26.73	15.95	Rank 3
Parag Parikh Flexi Cap Fund	00.12	05.80	26.43	17.11	Unrated
Quant Flexi Cap Fund	-02.39	13.48	40.25	18.36	Unrated
Benchmark (S&P BSE 500 TRI)	-04.85	05.00	21.09	11.81	-

HDFC Flexi Cap Fund and JM Flexi Cap Fund are the only two schemes in the list that have got Rank 1 because they have been consistently performing well, giving positive returns over the years, as seen from the table above. Parag Parikh Flexi Cap Fund and Quant Flexi Cap Fund are not rated by Crisil rating agency. Parag Parikh Flexi Cap Fund is the only scheme that has exposure to foreign equity holdings in its portfolio.

All the funds considered are growth direct plans, the returns are taken from ValueResearch and ratings are from Crisil.

Disclaimer
Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.