Best Flexi Cap Mutual Funds in India: There are basically three categories of equity funds in which one could contemplate investing. Large-cap, mid-cap, and small-cap funds fall into these categories. The market capitalization of the investments in question largely determines this classification of investments.
In this article, we will discuss the meaning of mutual funds, provide an overview of flexi cap mutual funds, their significance, and list the best flexi cap mutual funds in India. Find out by reading on!
What are Mutual Funds
A mutual fund is a type of collective investment that invests money in equities, bonds, government securities, and money market instruments by pooling funds from a variety of investors.
Professional fund managers invest the money that has been collected and entered into mutual fund schemes. In accordance with the investment objective of the scheme, they make investments in stocks, bonds, and other segments.
What Is a Flexi Cap Fund
On November 9, 2020, the Securities and Exchange Board of India (SEBI) made the debut of Flexi-cap funds. According to the prospectus of the fund, a Flexi-Cap fund is an investment that gives you access to investments in a variety of market capitalization categories.
By investing in high-quality companies regardless of market capitalization—large-cap, mid-cap, or small-cap—it provides fund managers with investment options and diversification opportunities.
During times of economic uncertainty, a Flexi-cap fund can offer the highest returns of any mutual fund. This is one of the most important factors that makes Flexi-cap funds attractive and the most popular among investors today.
They are funds that are well-balanced and could provide consistent returns even in bear markets. The more assorted the portfolio blend, the more ideal the harmony between the asset’s gamble and return perspectives guaranteeing appropriate returns.
Importance of Flexi Cap Funds
Flexi-cap funds automatically allocate their investments to the best opportunities to grow their investments when the markets restrict volatility. These funds work hard to prevent the portfolio of investments from experiencing a sharp decline, which typically occurs when stocks fail or perform poorly.
Features of Flexi Cap Funds
More than 65% of a flexible-cap fund’s assets are invested in stocks and other related instruments. They spend money on all kinds of capitalization without being constrained in any way. In the event that the fund is not performing as expected, it is possible to switch from one market capitalization to another in such mutual funds.
Because of its adaptability, the administration of the portfolio is conceivable wherein it can change among capital commercial center sections and put resources into partnerships that are performing great and leaving the failing to meet expectations choices.
The following list represents the top Flexi-Cap stocks in India, with an emphasis on assets under management (AUM), now that we have completed the industry’s fundamental overview and are familiar with its terms.
The following list is based on the funds’ “Direct” plan schemes, which require investors to invest directly with the AMC without the assistance of a distributor. Let’s examine each one separately.
Best Flexi Cap Mutual Funds in India #1 – Kotak Flexi Cap Fund
| Fund Company: Kotak Mahindra Asset Management Co Ltd | Size (AUM ): ₹ 35,775.03 Cr. |
| 3-yr returns (CAGR): 23.32% | 1-yr return: 1.47% |
| Expense ratio: 0.68% | Inception Date: 01/01/2013 |
| Exit Load (0 to 90 days): 1% for 0-1 year & 0% for more than 1 year | No. of Stocks Held: 50 |
The Kotak Flexi Cap Fund focuses on exposures to industries that are likely to perform well over the medium term. Long-term capital appreciation from a portfolio of equity and related securities is the fund’s investment objective. On the first of January 2013, the fund was established.
The fund operates with an expense ratio of 0.68 percent while maintaining an AUM base of approximately Rs 35,775 crores. The leave load for the organization is 1% for 0-1 year and 0 percent for a time of over 1 year. On a SIP basis, the minimum investment is Rs 500, while on a lump sum basis, it is Rs 5,000.
Allocation
Financial Services, Information Technology, and Automobile & Auto Components make up the majority of its investments. ICICI Bank accounts for 9.46 percent of its holdings, followed by Infosys (5.72%), L&T (5.42%), and HDFC Bank (5.14%).
Returns
The benchmark’s return of 27.97% is higher than the fund’s annualized return of 23.32 percent over three years. It has returned 10.37 percent annually over five years, which is lower than the benchmark’s 11.47 percent.
Fund Managers
Mr. Harsha Upadhyaya is a Chartered Financial Analyst, a BE (Mechanical) from the National Institute of Technology, Suratkal, and a Post Graduate in Management (Finance) from IIM Lucknow. He has been working in fund management and equity research for nearly two decades.
He has worked for companies like DSP BlackRock, UTI Asset Management, Reliance Group, and SG Asia Securities in the past.
Best Flexi Cap Mutual Funds in India #2 – HDFC Flexi Cap Fund
| Fund Company: HDFC Asset Management Company Limited | Size (AUM): ₹ 31,673 Cr |
| 3-yr returns (CAGR): 33.45% | 1-yr return: 10.34% |
| Expense ratio: 1.00% | Inception Date: 01/01/2013 |
| Exit Load (0 to 90 days): 1% for 0-1 year & 0% for more than 1 year | No. of Stocks Held: 52 |
The fund is an open-ended dynamic equity scheme that invests in businesses with superior financial strength, distinct competitive advantages, and a likelihood of exceeding average growth. On the first of January 2013, the fund was established.
The plan follows a value methodology to construct a portfolio that addresses a cross-part of organizations enhanced across significant businesses, financial areas, and market capitalization that offers an OK gamble reward balance.
With an AUM base of roughly Rs 31,673 crores, the asset plays out its tasks while keeping a cost proportion of 1.00 percent. The leave load for the organization is 1% for 0-1 year and 0 percent for a time of over 1 year. On a SIP basis, the minimum investment is Rs 500, while on a lump sum basis, it is Rs 5,000.
Allocation
It has most of its cash put resources into the Monetary, Energy, Innovation, and Medical services area. Its main four property are ICICI Bank (9.53%), HDFC Bank (6.06%), Infosys (5.78%), and State Bank Of India (5.53%).
Returns
The asset has given 3-year annualized returns of 33.45 percent which is higher than the benchmark’s arrival of 27.97 percent. It has outperformed the benchmark’s returns of 11.47 percent over the course of five years with annualized returns of 13.14 percent.
Ms. Roshi Jain, a fund manager, is a Chartered Financial Analyst who also earned her CA and PGDM degrees from IIM Ahmedabad. She previously worked for Franklin Templeton Investments, Goldman Sachs (London), Goldman Sachs (Singapore), Wipro Ltd., and S. R. Batliboi & Co. before joining HDFC Asset Management Company Limited.
Best Flexi Cap Mutual Funds in India #3 – Parag Parikh Flexi Cap Fund
| Fund Company: PPFAS Asset Management Pvt. Ltd | Size (AUM): ₹ 29,953 Cr |
| 3-yr returns (CAGR): 33.53% | 1-yr return: 2.47% |
| Expense ratio: 0.75% | Inception Date: 13/05/2013 |
| Exit Load (0 to 90 days): 2% for 0-1 year, 1% for 1-2 years & 0% for more than 2 years | No. of Stocks Held: 38 |
The fund has a straightforward investment procedure. The fund managers attempt to capitalize on a variety of market participants’ cognitive and emotional biases. To put it another way, the investigation of human emotions will be interwoven with the examination of financial statements.
It only provides investors with the “Growth” Option despite its firm belief in the concept of compounding. On May 13, 2013, the fund was set up.
The fund operates at an expense ratio of 0.75% while maintaining an AUM base of approximately Rs 29,953 crores. The company has an exit load of 2% for one to one year, 1% for one to two years, and 0% for more than two years. The base venture esteem on a Taste premise is Rs 1,000 and on a lumpsum premise too it is Rs 1,000.
Allocation
The Consumer Staples, Financial, Services, Technology, and Technology sectors make up the majority of its investments. HDFC (7.81 percent), ITC (7.63 percent), Bajaj Holdings & Investment (7.53 percent), and ICICI Bank (5.57 percent) are its top four holdings.
Returns
The fund has outperformed the benchmark’s return of 27.69 percent over the course of three years with annualized returns of 33.53 percent. It has outperformed the benchmark’s returns of 11.40 percent over the course of five years with annualized returns of 17.53 percent.
Fund Managers
Mr. Raj Mehta, is a Commerce Graduate from the University of Mumbai, a fellow Member of ICAI, and a CFA charter holder. Beginning his career as an intern with PPFAS Mutual Fund in 2012, he swiftly moved up the ranks and is currently part of the Fund Management team.
Mr. Rajeev Thakkar is a CA, Cost Accountant, CFA, and CFP and has been associated with PPFAS AMC since 2013.
Mr. Rukun Tarachandani has done B Tech (Information Technology), PGPM (Finance), CFA, and CQF. Prior to joining PPFAS Mutual Fund, he was associated with Kotak Mutual Fund, Goldman Sachs, and Unnati Investment Management & Research Group.
Best Flexi Cap Mutual Funds in India #4 – Franklin India Flexi Cap Fund
| Fund Company: Franklin Templeton Asst Mgmt(IND)Pvt Ltd | Size (AUM ): ₹ 9,989 Cr |
| 3-yr returns (CAGR): 29.95% | 1-yr return: 1.21% |
| Expense ratio: 1.10% | Inception Date: 01/01/2013 |
| Exit Load (0 to 90 days): 1% for 0-1 year & 0% for more than 1 year | No. of Stocks Held: 54 |
The scheme mainly aims to provide growth of capital and regular dividend from a portfolio of equity, debt, and money market instruments and focus on wealth-creating companies across all sectors and market cap ranges. The fund was established on January 1st, 2013.
With an AUM base of approximately Rs 9,989 crores, the fund performs its operations while maintaining an expense ratio of 1.10 percent. The exit load for the company is 1 percent for 0-1 year and 0 percent for a period of more than 1 year. The minimum investment value on a SIP basis is Rs 500 and on a lumpsum basis, it is Rs 5,000.
Allocation
It has the majority of its money invested in the Financial, Technology, Consumer Staples, and Energy sector. Its top four holdings are HDFC Bank (8.81%), ICICI Bank (8.56%), Infosys (6.11%), and Axis Bank (5.49%).
Returns
The fund has provided 3-year annualized returns of 29.95 percent which is higher than the benchmark’s return of 27.97 percent. It has provided 5-year annualized returns of 11.13 percent which is lower than the benchmark’s returns of 11.47 percent.
Fund Managers
Mr. R Janakiraman is a B.E and PGDM (Business Management). Prior to joining Franklin Templeton Investments, he worked with Indian Syntans Inv. Pvt. Ltd., Citicorp Information Tech Ltd., and UTI Securities Exchange Ltd.
Mr. Anand Radhakrishnan is a B.Tech, CFA, and PGDM from IIM Ahmedabad. Prior to joining Franklin Templeton Investments, he worked with Sundaram Asset Management Ltd., SBI Funds Management, and Asian Convertible and Income Fund.
Best Flexi Cap Mutual Funds In India #5 – Quant Flexi Cap Fund
| Fund Company: Quant Money Managers Limited | Size (AUM ): ₹ 1,045 Cr |
| 3-yr returns (CAGR): 46.23% | 1-yr return: 4.36% |
| Expense ratio: 0.58% | Inception Date: 01/01/2013 |
| Exit Load (0 to 90 days): 0% | No. of Stocks Held: 38 |
The primary investment objective of the scheme is to seek to generate consistent returns by investing in a portfolio of Large Cap, Mid Cap, and Small Cap companies. The fund has the discretion to completely or partially invest in any of the securities stated above with a view to maximizing the returns or on defensive considerations. The fund was established on January 1st, 2013.
With an AUM base of approximately Rs 1,045 crores, the fund performs its operations while maintaining an expense ratio of 0.58 percent. The exit load for the company is constant at 0 percent. The minimum investment value on a SIP basis is Rs 1000 and on a lumpsum basis, it is Rs 5,000.
Allocation
It has the majority of its money invested in the Financial, Energy, Consumer Staples, and Metals & Mining sector. Its top four holdings are Reliance Industries (9.17%), ITC (8.67%), State Bank Of India (7.02%), and HDFC Bank (6.07%).
Returns
The fund has provided 3-year annualized returns of 46.23 percent which is way higher than the benchmark’s return of 27.69 percent. It has provided 5-year annualized returns of 17.09 percent which is higher than the benchmark’s returns of 11.40 percent.
Fund Managers
Mr. Sandeep Tandon has 23 years of experience in the financial services industry. Associated with the industry for more than 2 decades, some of his roles include playing a key role in setting up the equity derivatives desk at ICICI Securities as vice president. He started his career with the Economic Times Research Bureau, a research wing of the leading financial daily of India, The Economic Times.
Mr. Sanjeev Sharma is a Commerce Graduate and PGDBA (Finance) from Symbiosis, Pune. He has a total work experience of 17 years including 13 years of experience in the financial market. He specializes in identifying crucial inflection points in securities.
Mr Ankit A Pande has done CFA and MBA. Prior to joining Quant Mutual Fund, he was associated with Infosys Finacle.
Mr. Vasav Sahgal pursued his B.Com. and CFA. Prior to joining Quant Mutual Fund, he worked with Eqestar capital as Equity Research Analyst.
In Closing
We looked at some of India’s best Flexi Cap mutual funds in this article. Before making any investment decisions in the schemes, we looked at their annualized returns, top holdings, expense ratio, exit load, and a slew of other relevant factors. It is crucial to point out and warn that mutual funds are vulnerable to market risks.
Before making a decision, it is essential to carefully read all documents pertaining to the scheme. One can consider different protections for making an enhanced portfolio.
That’s all from me. I hope you found the article interesting and learned something new from it. Happy investing and have a wonderful day!
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