Introduction
Most mutual fund investors are concerned about the uncertainties of the market. It is difficult to determine which is better - large caps, mid caps, or small caps. Moreover, when the market sentiment changes, understanding if it is the right time to switch from one category to another isn’t easy. If you’re struggling with the same investing problems, make flexi-cap mutual funds your ally.
What are flexi-cap funds?
Flexi-cap funds are a distinct type of mutual funds that allow you to explore different market sizes. Due to this flexibility, you can make switches in the portfolio based on market mood changes. You can invest in stocks across market capitalisation.
Flexi-cap funds aim to achieve long-term capital appreciation by maintaining a diversified portfolio. They are attractive for investors seeking higher returns than large-cap funds but safer than the fluctuations of small-cap and mid-cap funds.
Advantages of flexi-cap funds
Some benefits of investing in flexi-cap funds are:
- You have exposure to stocks of different sizes and sectors. As a result, you can diversify your holdings, mitigate risks, and make returns less volatile.
- Flexi-cap mutual fund schemes can adjust to short and long-term changes in market trends.
- With investments in all kinds of securities, the level of risk reduces, and the level of returns over the years balances out.
- They are suitable for long-term goals with an investment tenure of 5 to 7 years.
6 top-performing flexi-cap funds for 2024
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1. Quant Flexi Cap Fund Growth Direct Plan
Quant Money Managers Limited was established on December 12, 1995, as the Asset Management Company (AMC) for Quant Mutual Funds. The fund has 27 schemes, with assets under management (AUM) worth Rs. 3,540 crore as of January 31, 2024. The fund has allocated 87.21% of investments in domestic equities, comprising 27.38% in small-cap, 16.81% in mid-cap, and 29.63% in large-cap stocks.
2. Parag Parikh Flexi Cap Fund
The PPFAS mutual fund introduced the Parag Parikh Flexi Cap Fund on October 10, 2012. Most of its holdings are spread across the IT, banking, manufacturing, consumer goods, and services industries. Its portfolio comprises Coal India, HCL Technologies, Bajaj Holdings & Investment, HDFC Bank, Power Grid Corporation of India, etc. As of January 31, 2024, it had an AUM worth Rs. 55,034 crore.
3. JM Flexi Cap Fund - Direct Growth
JM Flexi Cap Fund has an investment of 98.19% in domestic equities. These comprise 22.7% in small-cap, 13.86% in mid-cap, and 39.12% in large-cap stocks. The scheme’s allocation is spread across sectors, including banks, construction, IT, power, and automobile. Its AUM was Rs. 1,438 crore as of January 31, 2024.
4. Bank of India Flexi Cap Fund - Direct-Growth
As of January 31, 2024, the fund had an AUM worth Rs. 630 crore and a portfolio turnover ratio of 87%. Its top holdings include HDFC Bank, Reliance, State Bank of India, Hindustan Aeronautics, Nippon India ETF PSU Bank BEES, etc. You need a minimum SIP of Rs. 1,000 and a minimum lump sum of Rs. 5,000 to start investing in the fund.
5. HDFC Flexi Cap Fund
Launched in January 2015, the HDFC Flexi Cap Fund is a pure equity scheme with a minimum investment of 64% in equity-related investments. Of its 91.54% investment in domestic equities, 4.93% belongs to small-cap, 4.48% to mid-cap, and 71.54% to large-cap stocks. Its AUM was worth Rs. 47,642 crore as of January 31, 2024, and its portfolio turnover ratio is 33.23%.
6. Edelweiss Flexi Cap Fund
The Edelweiss Flexi Cap Fund was launched on February 3, 2015. It has 97.51% allocation in equity schemes and 2.6% in reverse repos. As of January 31, 2024, the fund had an AUM of Rs. 1,598 crore. Its top holdings include Bajaj Auto, Reliance, ICICI Bank, HDFC Bank, etc. You can invest in the fund with a minimum SIP of Rs. 100 and also a minimum lump sum of Rs. 100.
Conclusion
Flexi-cap funds are a relatively newer entrant in the equity funds pack. The Securities and Exchange Board of India (SEBI) reg