What Are Flexicap & Multicap Mutual Funds? Top Performing MF In Last 5 Yrs With Returns Of Up To 28%

When it comes to investing in mutual funds, retail investors often prioritize historical performance as a key factor in their decision-making process. While a variety of elements such as fund management quality, expense ratios, and risk levels should influence the investment decision, past returns frequently take centre stage. In this article, we delve into the top-performing schemes within the categories of Flexi Cap and Multi Cap mutual funds, offering investors a clearer perspective on potential investment opportunities.

Flexicap Mutual Funds

Flexicap mutual funds are a popular choice among investors due to their dynamic investment strategy. According to a circular issued by the Securities and Exchange Board of India (SEBI) on November 6, 2020, Flexi Cap schemes must invest at least 65% of their portfolio in equity and equity-related instruments. These schemes are not restricted by market capitalization and have the flexibility to allocate assets across largecap, midcap, and smallcap stocks, depending on market conditions and opportunities.

As of June 30, 2024, data from the Association of Mutual Funds in India (AMFI) reveals that there are 39 Flexicap schemes with total assets under management (AUM) amounting to Rs 4.01 lakh crore. This category has seen significant interest from investors due to its potential for high returns and diversified risk.

Top-Performing Flexicap Mutual Funds

For investors seeking to maximize their returns, the following Flexi Cap schemes have delivered impressive annualized returns over the past five years:
Franklin India Flexicap Fund: 24% returns
HDFC Flexicap Fund: 24.02% returns
JM Flexicap Fund: 27.72% returns
Parag Parikh Flexicap Fund: 25.96% returns
Edelweiss Flexicap Fund: 22.12% returns
PGIM India Flexicap Fund: 22.43% returns

As evident, these six Flexicap schemes have provided over 22% annualized returns in the last five years, making them strong contenders for investors looking to grow their wealth through diversified equity exposure. The JM Flexicap Fund stands out with a 27.72% return.

Multicap Mutual Funds

Multicap mutual funds, like Flexi Cap funds, invest across the market capitalization spectrum. However, SEBI's guidelines issued in October 2017 mandate that these funds must invest at least 75% of their assets in equity and equity-related instruments. This ensures a balanced approach, allowing investors to benefit from exposure to largecap stability while also capturing the growth potential of midcap and smallcap stocks.

As of June 30, 2024, the AMFI reports that there are 25 Multicap schemes with a total AUM of Rs 1.54 lakh crore. This category has gained popularity for its ability to navigate various market phases and offer diversified returns.

Top-Performing Multicap Mutual Funds

The following Multicap schemes have delivered noteworthy annualized returns over the past five years:
Mahindra Manulife Multicap Fund: 27.55% returns
Invesco India Multicap Fund: 23.71% returns
Baroda BNP Paribas Multicap Fund: 23.84% returns
Nippon India Multicap Fund: 26.60% returns
ICICI Prudential Multicap Fund: 23.20% returns
Sundaram Multicap Fund: 21.67% returns

These six Multicap schemes have generated over 21% annualized returns in the last five years, offering investors a robust option for long-term wealth accumulation. The Mahindra Manulife Multi Cap Fund leads the pack with a 27.55% return, highlighting its strong performance across different market conditions.

While past returns provide valuable insight into a fund's historical performance, it is crucial to understand that they do not guarantee future results. Market dynamics, economic conditions, and changes in fund management can all impact future returns, which may or may not replicate the historical performance.

Investors should consider other factors such as the fund manager's track record, the fund's investment philosophy, and its expense ratio before making an investment decision. Diversification across different fund categories can also help mitigate risks and ensure a more balanced portfolio.

Flexi Cap and Multi Cap mutual funds offer investors the opportunity to diversify their equity investments and potentially achieve high returns. The top-performing funds in these categories have demonstrated strong annualized returns over the past five years, making them attractive options for long-term investors. However, as with any investment, it is essential to conduct thorough research and consider all relevant factors before committing your hard-earned money. By doing so, investors can make informed decisions that align with their financial goals and risk tolerance.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies or GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.