Top 5 funds of Flexi Cap, 1 lakh can make 3 lakhs; A profitable option to invest in market fluctuations?

Top-5 Flexi Cap Funds: The ongoing fluctuations in the market have increased concern among investors. In such a situation, investors are looking for such options which can not only handle the ups and downs of the market, but also give better returns in the long term. Experts say that at present, flexi cap funds can become a great option for investors due to their flexibility and diversification. There was an investment of Rs 4,730.71 crore in these funds in December. In the last five years, flexi cap funds have given excellent returns of 20-30% to investors, that is, these funds have more than doubled the investors’ money.

Flexi Cap: Investors’ money increased more than double, got returns up to 30%

Talking about the performance of flexi cap funds, in the last five years the top-5 flexi caps have given returns of around 20-30% to investors. Among these, Quant Flexi Cap Fund Scheme has given the highest return of 30.43%. If someone had invested a lump sum of Rs 1 lakh in this scheme five years ago, then today its value would have increased to more than Rs 3.71 lakh. In this way the investor would have got a profit of more than Rs 2.71 lakh.

The average return of flexi cap funds on an annual basis has been 14%. The average return of these funds in the last three years has been 13% and in the last five years it has been 16.5%.

Let us understand through mutual fund calculations that if an investor had invested a lump sum of Rs 1 lakh in these top-5 flexi cap funds five years ago, what would have been its value today….

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Source- AMFI (Based on NAV as of January 20, 2025)

Note- Past performance of mutual fund schemes is not a guarantee of future returns.

According to market regulator SEBI rules, flexi cap mutual funds are equity funds that are mandated to invest at least 65% of their corpus in equities and equity-related instruments. The specialty of flexi cap funds is that they can invest in equities between large-cap, mid-cap and small-cap, without any particular limit.

These equity mutual fund schemes are open-ended and give the fund manager the freedom to choose companies with different market capitalizations across different sectors.

There is no restriction on the size or type of company on investment in Flexi Cap Mutual Funds. The versatile approach of this fund makes it an attractive investment option for investors.

Mohit Gang, CEO and CFA, Moneyfront, says that given the current market volatility, fund managers should be allowed to decide whether large, mid or small caps are a safe option. Flexi cap funds are better in this case as it gives the fund managers the freedom to invest in any market cap, sector or style.

Flexi cap fund is more beneficial than multi cap fund. According to the rule in multi cap fund, it is necessary to invest 25% of the money in large, mid and small caps. This reduces the freedom of fund managers and makes it more risky.

Currently, flexi cap funds are mostly moving towards large caps, making them less volatile and attractive for investors.

There are many benefits of investing in flexi cap mutual funds. Here are some of the major benefits:

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Diversification: Through flexi cap funds, your money is divided among stocks with different risks and returns.

Flexibility: These funds have the freedom to invest in companies of any size and across different sectors and market capitalisations. Due to wider investment options, fund managers have the flexibility to buy and sell more stocks to get better returns.

Dynamic Asset Allocation: In flexi cap mutual funds, fund managers can adjust the allocation between large, mid and small-cap stocks depending on the current market conditions. This adaptive approach helps the fund to maximize returns according to changing market conditions.

Professional Management: By investing in flexi cap mutual funds you can benefit from the experience and knowledge of professional fund managers.

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