Flexi Cap vs Hybrid Mutual Funds: What Is The Difference, Which Gives You Better Three-Year Returns?

Flexi Cap vs Hybrid Mutual Funds: Mutual fund investment is considered a favourable option for risk-averse investors planning to bring exposure into their portfolio. To further minimise volatility, mutual fund categories like flexi cap and hybrid provide diversified investment options.

As the name suggests, flexi cap and hybrid mutual funds work on the principle of diversification to offer better returns without compromising on risk and volatility. But both types of mutual funds operate differently in separate categories. Here are the key differences between flexi cap and hybrid mutual funds, and the history of top mutual funds in both categories.

What is a Flexi Cap Mutual Fund?

Flexi-cap mutual funds offer a diversified investment in equities. The mutual fund invests all the fund in equities, but the allocation includes large cap, small cap and mid-cap. The mutual fund covers the entire market spectrum, offering broad diversification.

What is A Hybrid Mutual Fund?

A hybrid mutual fund also focuses on diversification, but unlike flexi cap MF, this category is not just limited to equities. The MF category includes a mix of asset classes, including equity (stocks), debt (bonds), and even gold and cash equivalents.

Top Performing Flexi Cap Mutual Funds In 3 Years

Scheme Name	Benchmark	3-Year Return (%) Regular	3-Year Return (%) Direct	3-Year Return (%) Benchmark
Motilal Oswal Flexi Cap Fund	Nifty 500 TRI	22.57	23.61	16.48
Invesco India Flexi Cap Fund	BSE 500 TRI	21.96	23.76	16.15
HDFC Flexi Cap Fund	Nifty 500 TRI	21.81	22.61	16.48
Bank of India Flexi Cap Fund	BSE 500 TRI	21.5	23.26	16.15
JM Flexi Cap Fund	BSE 500 TRI	21.17	22.72	16.15

Top Performing Hybrid Mutual Funds in 3 Years

Scheme Name	Benchmark	3-Year Return – Regular (%)	3-Year Return – Direct (%)	3-Year Return – Benchmark (%)
ICICI Prudential Equity & Debt Fund	CRISIL Hybrid 35+65 – Aggressive Index	19.33	20.03	13.02
JM Aggressive Hybrid Fund	CRISIL Hybrid 35+65 – Aggressive Index	19.21	21.03	13.02
Bank of India Mid & Small Cap Equity & Debt Fund	70% Nifty MidSmallcap 400 TRI Index & 30% CRISIL Short Term Bond Index	18.84	20.22	19.24
Edelweiss Aggressive Hybrid Fund	CRISIL Hybrid 35+65 – Aggressive Index	17.01	18.00	13.02
Mahindra Manulife Aggressive Hybrid Fund	CRISIL Hybrid 35+65 – Aggressive Index	16.58	18.53	13.02

Hybrid Mutual Fund vs Flexi Cap Mutual Fund

While the top flexi cap mutual funds have given around 22% returns in three years, the flexi cap's 'Aggressive Hybrid' category has given around 20% returns in three years. The percentage of returns in three year duration for hybrid fund may also depend on MF provider and its sub categories like conservative, aggressive, multi allocation, etc.

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