Morningstar Rated Flexicap Mutual Fund SIP Given Upto 64% Return In 2 Yrs: Is It Beneficial?

The Indian equity markets have started to recover in the past few days, after staying marginally bearish for a long time. Investors are again focusing on the mutual fund and SIPs for good returns. Here a Flexi cap fund has been discussed which has given high returns even in the short term. Flexi-cap mutual funds are known as open-ended and dynamic equity funds that will invest across various market capitalizations, like large-cap, mid-cap, and small-cap stocks.

Edelweiss Flexi Cap Fund - Direct Plan-Growth

This Flexi cap fund has performed significantly well in the long term for SIPs. In the last 1-year SIP return (absolute return) stood at -7.57%, in the last 2 years it has fetched 11.31% returns, in the last 3 years it has given 26.25% returns, and in the last 5 years, it has fetched 38.42% returns. Annualized returns from Edelweiss Flexi Cap Fund's SIP were 10.68% in the past 2 years, and 15.75% in the past 3 years. However, the Indian equity market has not been very bullish in the last year, so, this fund's annualized return has fallen 13.75% in the past 1 year.

Edelweiss Flexi Cap Fund's absolute mutual fund returns have been significantly high in the last two years. In the last 1 year return stood at 1.26%, in the last 2 years it has fetched 64.60% returns, in the last 3 years it has given 44.11% returns, and in the last 5 years, it has given 81.15% returns. In the past 2 years, the Edelweiss Flexi Cap Fund's annualized returns stood at 28.30%, higher than the category average at 25.48%. Additionally, in the past 3 years, its annualized return has been quoted at 12.94%, marginally higher than the category average at 12.85%.

(Data till July 1, 2022)

NAV and AUM

It is a Flexi-cap mutual fund SIP investment option that has a NAV of Rs. 22.49. The Assets Under Management (AUM) of this fund is Rs. 911.68 crore, which is not significantly high. However, the Expense Ratio (ER) of the fund is 0.56%. The ER is marginally lower than the category average at 0.91%. So, this will be able to increase your profitability compared to other funds with higher ER. The Expense Ratio (ER) is the cost of owning a mutual fund or SIP, which will be charged by a mutual fund house from the retail investors for managing the fund. Hence, a lower than the category average ER can increase your profitability and vice versa.

This above-mentioned mutual fund SIP has been best rated with 3 Star by rating agency Morningstar.

Portfolio

Edelweiss Flexi Cap Fund's total equity holding is 96.11%, and the rest of the 3.89% is invested in other sectors. Among a total of 57 stocks, the fund's Large Cap Investments are 59.31%, Mid Cap Investments are 9.05%; Small Cap Investments are 15.30%, and 12.45% investments are allocated to other funds.

The top 10 equity holdings of the fund are ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Reliance Industries Ltd., State Bank Of India, Housing Development Finance Corporation Ltd., Axis Bank Ltd., Bharti Airtel Ltd., Tata Motors Ltd., Larsen & Toubro Ltd.

Other funds under this category are, IDBI Flexi Cap Fund - Direct Plan - Growth, Franklin India Flexi Cap Fund - Direct - Growth, Union Flexi Cap Fund - Direct Plan - Growth, and etc.

Disclaimer

Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.