If you are planning to invest in a mutual fund scheme, it is recommend to examine the past returns of that scheme and compare the same with similar schemes in the same category. This gives a fair amount of idea of which schemes are doing well and also the future scope of growth in those schemes.
Here, we give a lowdown on the past five year returns delivered by flexi cap mutual funds. Those who are not aware, flexi cap mutual funds refer to the schemes which have complete a flexibility of investing across market capitalisation i.e., mid cap, small cap and large cap in any ratio.
These schemes are also supposed to invest a minimum of 65 percent of assets in equity and equity related instruments, per the Sebi’s categorisation of mutual fund schemes. There are a total of 39 schemes in the category of flexi cap mutual funds with a total asset size of ₹4.35 lakh crore.
Flexi cap funds
Out of these, a total of ten schemes have delivered more than 23 percent annualised returns in the past five years. As we can see from the table below, Quant Flexi Cap has deliverd 35.25 percent annualised return while HDFC Flexi Cap has given 31.32 percent return.Â
This means if someone had invested ₹1 lakh five years ago in Quant Flexi Cap Fund, it would have grown to ₹4.52 lakh and ₹3.90 lakh in HDFC Flexi Cap Fund.
Other schemes which have given exceptional returns include JM Flexi Cap Fund, PGIM Flexi Cap fund and Parag Parikh Flexi Cap Fund.
Meanwhile, it is important to note that the past returns are only indicative but not assure future returns. This means just because a scheme has given exceptional returns, it does not mean it will continue to give same returns in the future as well.
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Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.