Best mutual funds: These flexi caps gave over 20% annualised returns in the past 5 years, should you invest?

Are you planning to invest in a mutual fund scheme? The chances are that you would have examined the returns delivered by that scheme and compared the same with its peers in the same category to get a fair assessment.

Here, we try to compare the past five-year returns of flexi cap mutual funds, and sort the ones that rose by more than 20 percent in the past five years.

Before we proceed further, let us first understand what are flexi cap mutual funds?

Flexi-cap mutual funds

These refer to the mutual fund schemes which invest across small cap, mid cap and large cap stocks.

These funds must invest a minimum of 65 percent in equity and equity-related instruments. As per a Sebi circular on Nov 6, 2020, flexi cap mutual funds were introduced as a new category under the equity schemes.

They are similar to multi cap schemes on several counts but offer more flexibility than the latter since there is no restriction on the proportion of allocation to stocks belonging to one category of market capitalisation i.e., small cap, mid cap or large cap.

Here, we list out the returns given by flexi cap mutual funds in the past five years and shortlist the ones which gave more than 20 percent.

There are 39 schemes in the category of flexi cap funds with total assets under management (AUM) of ₹4.20 lakh crore as on July 31, 2024. Out of this, an inflow of ₹3,053 crore was witnessed in July alone.

At the same time, the number of multi cap schemes on July 31, 2024 stood at 26 (against 39 in flexi cap) with total AUM of ₹1.68 lakh crore.

(Source: AMFI, returns as on Sept 5, 2024)

As one can see the table above, the highest annualised return of 36.98 percent was delivered by Quant Flexi Cap Fund followed by JM Flexicap Fund which spiked by 28.61 percent during this period.

Other mutual fund schemes which gave over 20 percent return in the past half a decade include Aditya Birla Sun Life Flexi Cap Fund, DSP Flexi Cap Fund, Franklin India Flexi Cap Fund, HSBC Flexi Cap Fund and Parag Parikh Flexi Cap Fund.

It is important to note that the past returns of a scheme do not guarantee its future returns. In other words, the high returns delivered by one scheme (or a set of schemes) do not necessarily mean that they will continue to perform well in the future as well.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.