The flexi cap mutual fund category had a solid positive inflow in September 2021, despite the benchmark indexes trading at record highs, with the BSE Sensex hovering over 60,300 and the Nifty exceeding the 18,000 level. Flexi Cap Funds have seen a positive inflow of Rs 2,008.67 Cr among Growth/Equity Oriented Schemes. Flexi Cap Funds have also achieved a number of portfolios of 1,02,21,008, Net Assets Under Management of Rs 2,15,352.51 Cr and Average Net Assets Under Management of Rs 2,13,143.84 Cr as of 30th September 2021 according to the data of AMFI.
Why should you invest in flexi cap mutual funds in the bull market phase?
Flexi cap funds have had a strong inflow due to their asset allocation technique throughout the bull market. Flexi-cap funds invest in companies with a range of market capitalizations, such as large-cap, mid-cap, and small-cap equities. When it comes to the well-diversification of your portfolio across companies with varying market capitalizations, commencing a Systematic Investment Plan (SIP) in Flexi cap funds can be a good bet where the market is soaring at a record high.
According to the guidelines of SEBI, Flexi cap mutual funds are open-ended dynamic equity funds having a minimum of 65 percent of total assets across equity and equity-related securities. Flexi cap funds can be a suitable investment approach for investors with a moderate to high-risk appetite and a 5-year investment horizon seeking to diversify their portfolio across different market cap categories.
Investing in Flexi cap funds will make your equity portfolio well hedged between risk and return, resulting in wealth growth and inflation-beating returns to investors by making their equity allocation across large-cap, mid-cap, and small-cap market segments.
When the market is at a record high, equity investors may expect volatility and a bear market phase as a consequence, it is advisable to start a SIP in the top-performing flexi cap funds for higher risk-adjusted returns in the long run, than investing directly in pure big cap or mid-cap funds. So based on the rating of 5-star assigned by Value Research, here we have selected 5 flexi cap funds you can consider to start SIP in 2021.
Canara Robeco Flexi Cap Fund Direct Growth
It is a multi-cap mutual fund scheme from Canara Robeco Mutual Fund that was launched in 2003. The product has a 0.55 percent expense ratio, which is lower than most other funds in the same category. The 1-year returns for Canara Robeco Flexi Cap Fund Direct-Growth are 58.93 percent.
It has generated a CAGR of 16.38 percent since its inception. The financial, technology, automobile, construction, and healthcare sectors are all represented in the fund’s equity allocation. HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Reliance Industries Ltd., and Housing Development Finance Corpn. Ltd. are the fund’s top five holdings. The fund’s Net Asset Value (NAV) is Rs 247.83 crore, and its Asset Under Management (AUM) is Rs 6,063.79 crore as of October 8, 2021.
Value Research has given the fund a 5-star rating, and you may start a SIP with a minimum of Rs 1000. If purchased units are redeemed within one year of the investment date, the fund imposes a 1% exit load.
|Period||Canara Robeco Flexi Cap Fund – Dir – Growth||Scheme Benchmark (S&P BSE 500 TRI)||Additional Benchmark (S&P BSE Sensex TRI)|
|CAGR since Inception||16.38 %||15.35 %||14.90 %|
|1 Year||58.93 %||63.10 %||56.96 %|
|3 Year||23.49 %||19.73 %||19.03 %|
|5 Year||19.23 %||16.80 %||17.60 %|
|Comparative performance of Canara Robeco Flexi Cap Fund – Dir – Growth as of Sep 30, 2021. Source: canararobeco.com|
IIFL Focused Equity Fund Direct Growth
IIFL Focused Equity Fund Direct-Growth is a multi-cap mutual fund scheme launched by the fund house IIFL Mutual Fund in the year 2014. The fund’s expense ratio is 0.9 percent, which is comparable to the expense ratios charged by most other flexi cap funds. According to ETMoney, the IIFL Focused Equity Fund Direct-Growth returns over the last year have been 64.76 percent, with an average annual return of 18.90 percent since its introduction.
The equity allocation of the fund is spread throughout the financial, technology, automobile, construction, and communication sectors. ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Axis Bank Ltd., and Larsen & Toubro Ltd. are the fund’s top five holdings. Value Research has given the fund a five-star rating, reflecting its past performance in terms of providing returns in both bull and bear market phases.
As of October 8, 2021, the fund’s Net Asset Value (NAV) is Rs 33.28 crore, and its Asset Under Management (AUM) is Rs 2,366.02 crore. You may start a SIP with as little as Rs 1000, and the fund has a 1% exit load which investors need to consider before investing.
Parag Parikh Flexi Cap Fund Direct-Growth
Parag Parikh Flexi Cap Fund Direct-Growth is a multi-cap fund and the returns of the fund during the last year have been 60.58 percent and it has returned an average of 22.12% each year since its inception according to ETMoney. The fund’s expense ratio is 0.87 percent, which is comparable to the expense ratios charged by most other funds in the same category. The fund invests heavily in the Technology, Financial, Services, FMCG, and Automobile sectors. Bajaj Holdings & Investment Ltd., ITC Ltd., Alphabet Inc Class A, Amazon.com Inc. (USA), and Microsoft Corporation are the fund’s top five holdings (US).
Value Research has given the fund a 5-star rating and it has a Net Asset Value (NAV) of Rs 53.27 crore as of 8th October 2021. Parag Parikh Flexi Cap Fund Direct-Growth has an Asset Under Management (AUM) of Rs 16,075.87 Cr. If units are redeemed or transferred within one year, the fund charges a 2% exit load; if units are redeemed after one year, the fund charges a 1% exit load. With a minimum amount of Rs 1000, you can start SIP in this fund.
PGIM India Flexi Cap Fund Direct-Growth
In the year 2015, the fund company PGIM India Mutual Fund introduced the PGIM India Flexi Cap Fund Direct-Growth, a Multi Cap mutual fund plan. According to ETMoney statistics, PGIM India Flexi Cap Fund Direct-Growth returns for the previous year were 77.12 percent, and since its debut, it has generated an average annual return of 18.13 percent.
The fund’s equity allocation is split across the financial, construction, technology, healthcare, and engineering industries. Infosys Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., State Bank of India, and Tata Consultancy Services Ltd. are the fund’s top five holdings. The fund has a 5-star rating from Value Research with a Net Asset Value (NAV) of Rs 30.04 crore as of October 8, 2021. The Asset Under Management (AUM) of PGIM India Flexi Cap Fund Direct-Growth is Rs 2,416.35 crore.
The fund charges an exit load of 0.5 percent if units of more than 10% are redeemed within 90 days of the purchased date. SIP in this fund can be started from Rs 1000 per month.
UTI Flexi Cap Fund Direct-Growth
UTI Flexi Cap Fund Direct-Growth is a multi-cap scheme from the fund house UTI Mutual Fund that has been performing for the past 8 years. According to ETMoney, UTI Flexi Cap Fund Direct-Growth returns over the last year have been 67.33 percent, with an average annual return of 18.52 percent since its debut.
The fund’s expense ratio is 1.09 percent, which is much higher than most other funds in the same category. The fund’s equity allocation is balanced across the financial, technology, healthcare, services, and chemical industries. Bajaj Finance Ltd., HDFC Bank Ltd., Larsen & Toubro Infotech Ltd., Kotak Mahindra Bank Ltd., and Housing Development Finance Corpn. Ltd. are the fund’s top five holdings. Value Research has given the fund a five-star rating, indicating the fund’s high performance.
The fund’s Net Asset Value (NAV) as of October 8, 2021 is Rs 281.11. The fund’s Asset Under Management (AUM) is Rs 23,598.72 Cr. If more than 10% of acquired units are redeemed within one year of the purchase date, the fund imposes a 1% exit load. With a minimum monthly contribution of Rs 500, you can start SIP in UTI Flexi Cap Fund.
Best Flexi Cap Funds In 2021
Based on Value Research’s 5-star rating, historical performance, low expense ratio, and NAV, we’ve compiled a list of the top Flexi cap mutual funds to start SIP in 2021.
|Fund||1 mth returns||6 mth returns||1 Yr returns||3 Yr returns||5 Yr returns|
|Canara Robeco Flexi Cap Fund Direct-Growth||2.30%||25.18%||56.39%||26.77%||19.31%|
|IIFL Focused Equity Fund Direct-Growth||3.19%||27.02%||64.76%||32.99%||20.25%|
|Parag Parikh Flexi Cap Fund Direct-Growth||3.41%||28.57%||60.58%||30.33%||22.73%|
|PGIM India Flexi Cap Fund Direct-Growth||3.12%||29.99%||77.12%||34.63%||21.74%|
|UTI Flexi Cap Fund Direct-Growth||3.27%||24.59%||67.33%||28.85%||20.07%|
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