This Flexi-Cap Mutual Fund Ticked Return Upto 68%: Crisil Rated

Mutual funds are suitable for investors who are interested to step into the equity field, but they want to diversify their risk quotient. Here, the portfolio of a Flexi-cap mutual fund SIP, which was rated by Crisil, has been discussed.

Flexi-Cap mutual fund investment rationale

A Flexi-cap mutual fund invests its assets in multiple stocks, namely large-cap, mid-cap, and small-cap without any restriction of the market capitalization of the companies. Through this, a mutual fund house will diversify its risk factor and profitability. Large-cap stocks provide more security, and small-cap stocks provide more returns in the near term. On the other hand, a mid-cap stock will provide you with both security and good returns.

Large-cap stocks are the top 100 companies, with a market capitalization of Rs. 20,000 crore or more, in the equity market. The mid-cap stocks will have a market capitalization of Rs. 5,000 crore and less than Rs. 20,000 crore. The small-cap stocks will have a market capitalization of less than Rs. 5,000 crore.

LIC MF Flexi Cap Fund - Direct Plan

LIC MF Flexi Cap Fund - Direct Plan is a popular plan, that invests in large, mid and small-cap stocks. LIC MF Flexi Cap Fund - Direct Plan's NAV stood at Rs. 71.94; with a low unit price you can obtain good numbers of a unit of this fund. However, the fund size is Rs. 425.02 crore, while the Expense Ratio (ER) is 1.67%; while the category average is 0.94%. However, the ER is quite higher than the category average, so it can reduce your profitability marginally. The Expense Ratio (ER) is the percentage, the fund house will use your money for its official management expenses.

This mutual fund SIP has been rated with 2 Star by renowned rating agency Crisil.

Absolute and annualized returns

LIC MF Flexi Cap Fund - Direct Plan's SIP's absolute returns are most lucrative in the long term. In the last 1-year SIP return stood at 7.6%, in the last 2 years it has fetched 26.52% returns, in the last 3 years it has given a 33.21% returns, and in the last 5 years, it has fetched 43.17% returns. Annualized returns of this fund's SIP were 24.34% in the past 2 years, and 19.48% in the past 3 years.

LIC MF Flexi Cap Fund - Direct Plan's absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 17.24%, in the last 2 years it has fetched 31.99% returns, in the last 3 years it has given 53.71% returns, and in the last 5 years, it has given 68.32% returns. Additionally, in the past 1 year, the LIC MF Flexi Cap Fund - Direct Plan's annualized returns stood at 17.24%, however, the category average is 24.56%.

Portfolio

LIC MF Flexi Cap Fund - Direct Plan's equity holding is 97.63%, and the fund invests 2.33% in other sectors. The Fund's Large Cap Investments are 57.21%, Mid Cap Investments are 15.1%, Small Cap Investments are 12.54%, and 12.78% investments are allocated in other funds, among total of 54 stocks.

The top 10 equity holdings of the LIC MF Flexi Cap Fund - Direct Plan's are ICICI Bank, Infosys Ltd., HDFC Bank Ltd., Tata Consultancy Services Ltd., Bharti Airtel Ltd., Kotak Mahindra Bank Ltd., Hindustan Unilever Ltd., Coromandel International Ltd., and Biocon Ltd.

Other funds under this category are, PGIM India Flexi Cap Fund - Direct Plan, IDBI Flexi Cap Fund - Direct Plan, Franklin India Flexi Cap Fund - Direct, HSBC Flexi Cap Fund - Direct Plan, etc.

(Also read:  This Large and Mid-Cap Mutual Fund SIP Recorded Upto 64% Return: Crisil Rated)

Disclaimer

Investing in equities/mutual funds/SIPs 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.

(Data mentioned as on February 10, 2022)