Mutual fund investments are considered the safest among those that fetch high returns. They also offer investors a lot of options to choose from on the basis of their market capitalisation, sector allocation, and value.
A company’s stock can be large-, mid- or small-cap, based on market capitalisation. Thus, a retail investor can invest in a basket of stocks created by a mutual fund, and minimise his/her risk exposure in comparison to directly investing in the stock market.
A flexi-cap fund offers the flexibility of investing in stocks with different market capitalisation, and can invest in large-, mid- and small-cap funds, whichever they think will generate the highest return with a low risk exposure.
Here are the five best flexi-cap mutual funds based on a three-year return
Top-5 Flexi Cap Funds
1] Quant Flexi-cap Fund
The fund started in 2013, and it has a net asset value (NAV) of Rs 62.26 as of August 22, 2022. The total fund size is Rs 475.41 crore. This fund has outperformed the NIFTY 50 index by 21.02 per cent on a 3-year basis. The fund has invested 99.32 per cent of its assets in domestic equities, with 71.22 per cent in large-cap stocks, 17.79 per cent in mid-cap stocks, and 6.73 per cent in small-cap stocks. They have invested 8.6 per cent of their funds in ITC, which is their largest holding.
2] PGIM India Flexi-Cap Fund
The fund was introduced in 2015, and its NAV stands at Rs 28.01, at present. Its assets under management (AUM) is Rs 4,761.35 crore. This fund has outperformed NIFTY 50 by 11.29 per cent on a 3-year basis. The fund has invested 94.15 per cent of its assets in domestic equities, with 40.33 per cent in large-cap stocks, 11.28 per cent in mid-cap stocks, and 17.27 per cent in small-cap stocks. Their largest holding is in ICICI Bank; they have invested 8.6 per cent of their assets in it.
3] Parag Parikh Flexi-Cap Fund - Direct Plan - Growth
This fund was first introduced in 2013, and its AUM currently stands at Rs. 24,594.84 crore. Its NAV is Rs 51.43, at present. This fund has outperformed NIFTY 50 by 8.55 per cent. The fund has invested 68.92 per cent of its assets in domestic equities, with 56.21 per cent, 2.66 per cent and 9.12 per cent in large-, mid- and small-cap stocks, respectively. Their largest investment is in Housing Development Finance Corporation Ltd, with 8.1 per cent asset allocation.
4] IDBI Flexi-Cap Fund - Direct Plan - Growth
This fund was first introduced in 2014, and its AUM is Rs. 386.69 crore. Its NAV is Rs. 39.03. This fund has outperformed the NIFTY 50 index by 5.5 per cent. The fund has invested 98.78 per cent of its assets in domestic equities, with 63.93 per cent in large-cap stocks. Its mid- and small-cap allocation stands at 9.69 per cent and 9.04 per cent, respectively. Its largest holding is HDFC Bank, with 6.8 per cent asset allocation.
5] UTI Flexi-Cap Fund - Direct Plan - Growth
The fund was started in 2014 and currently holds Rs. 25,448 crore worth of AUM. Its NAV is Rs. 252.04. The fund has outperformed NIFTY 50 by 5.05 per cent. The fund has invested 98.78 per cent of its assets in domestic equities, with 63.93 per cent in large-cap stocks, 9.69 per cent in mid-cap and 9.04 per cent in small-cap stocks. Their largest holding is in Bajaj Finance, with 6.1 per cent of their investment allocated to it.
