MUMBAI: A recent analysis has identified ten flexi cap mutual fund schemes that have achieved impressive annualised returns exceeding 15 per cent over the past decade.
This means that an investment of Rs1 lakh in any of these funds would have grown to more than Rs4.04 lakh, assuming a consistent return of 15 per cent.
For those unfamiliar, a flexi cap scheme is an open-ended dynamic equity fund required to invest at least 65 per cent of its assets in equity and equity-related instruments across large, mid, and small-cap stocks.
The flexi cap category was introduced by the Securities and Exchange Board of India (SEBI) via a circular on November 6, 2020. Currently, there are 39 schemes in this category, with a total assets under management (AUM) of Rs4.29 lakh crore, making it the second-largest category of equity-oriented funds, just behind sectoral/thematic funds, which have an AUM of Rs4.449 lakh crore.
Caution critical
Following the establishment of this category, mutual fund houses were allowed to convert existing schemes into flexi cap funds. Notably, the largest schemes by asset size include the Parag Parikh Flexi Cap Fund and the HDFC Flexi Cap Fund.
However, retail investors should exercise caution. It’s important to remember that past performance does not guarantee future results. The historical returns of mutual fund schemes may or may not continue in the near future, so investors are advised to consider various factors before making investment decisions
