mutual fund schemes that are mandated to invest their assets across large cap, mid cap and small cap stocks with a minimum of 65 percent of assets in equity and equity-related instruments. This is a category introduced by the capital markets regulator Sebi in November 2020. The idea behind the introduction of this category was to offer more flexibility to the mutual funds in the pursuit of recommendations made by the mutual fund advisory committee (MFAC).
The markets regulator even permitted fund houses to convert their existing schemes into flexi cap in pursuance of the prescribed norms. There are 37 schemes in this category with total assets under management (AUMs) of ₹2.90 lakh crore, reveals AMFI (Association of Mutual Funds in India) data as on Sep 30, 2023. These flexi cap mutual funds delivered maximum returns in the past three years: (Source: AMFI, data as on Oct 23, 2023) As one can see in the table above, nearly half a dozen flexi cap schemes have managed to beat the benchmark indices in the past three years.
The top performing schemes gave annualised returns in the range of 28-30 percent, while others have delivered a return in the range of 22-26 percent per annum. These are the top-performing flexi cap funds: HDFC Flexi Cap Fund: It was launched on Jan 1, 1995 and has delivered an annualised return of 18.5 percent since inception. The key constituent stocks in the scheme are HDFC Bank, ICICI Bank, Treps, NTPC and Cipla.
It is a large fund with an asset size of ₹38,668 crore. Quant Flexi Cap Fund: It was launched on Aug 28, 2008 and has delivered an annualised return of 13.95 percent since inception. The key constituent stocks are Treps, HDFC Bank, Future on Tata Steel, RIL and Jio Financial Services.
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