Prior to investing in a mutual fund scheme, retail investors tend to compare the returns delivered by one scheme vis-à-vis other schemes in the same category.
Although there are a number of other factors which influence the decision of an investor of investing in a mutual fund, the past returns are typically too important to be overlooked.
Here we list out the top-performing schemes in the category of flexi cap and multi cap mutual funds:
Flexi cap mutual funds
These refer to the mutual fund schemes which have a minimum of 65 percent investment in equity and equity-related instruments.
These are open-ended dynamic equity schemes which invest across large cap, mid cap and small cap stocks, as per a Sebi circular issued on Nov 6, 2020.
There are 39 flexi cap schemes with total assets under management (AUMs) amounting to ₹4.01 lakh crore, revealed the AMFI (Association of Mutual funds in India) data as on June 30, 2024.
(Source: AMFI; regular returns as on Aug 7, 2024)
As one can see in the table above, there are six flexi-cap mutual schemes which delivered over 22 percent annualised returns in the past five years.
Multi cap mutual funds
These mutual funds refer to the schemes which invest in the stocks across the market capitalisation spectrum. These mutual funds are meant to invest at least 75 percent in equity and equity-related instruments, as per the Sebi’s guidelines issued in Oct 2017 on categorisation and rationalisation of schemes.
There are 25 multi-cap schemes with total assets under management (AUMs) amounting to ₹1.54 lakh crore, revealed the AMFI data as on June 30, 2024.
(Source: AMFI; regular returns as on Aug 7, 2024)
As one can see in the table above, six schemes in the category of multi cap funds gave over 20 percent annualised return in the past five years.
However, it is important to note that the past returns of a scheme do not guarantee its future returns, which may or may not replicate the historical performance.
(Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.)