Rating agency Crisil has rated PGIM India Flexi Cap Fund and UTI Flexi Cap Fund as the No 1 funds in the flexi cap category. The rating agency uses a number of parameters to rate mutual funds.
How Crisil rates mutual funds?
Crisil Mutual Fund Rank covers various categories across equity, debt and hybrid asset classes. Unlike most other ranking models, which are based purely on returns or net asset value (NAV), Crisil Mutual Fund Rank uses a combination of NAV and portfolio-based attributes for evaluation. This provides a single point analysis of mutual funds, taking into consideration key parameters such as risk-adjusted returns, asset concentration, liquidity and asset quality.
The ranks are assigned on a scale of 1 to 5, with CRISIL Fund Rank 1 indicating ‘very good performance’. In any peer group, the top 10 percentile of funds are ranked as CRISIL Fund Rank 1 and the next 20 percentile as CRISIL Fund Rank.
PGIM India Flexi Cap Fund – ranked No 1 by Crisil
This fund has generated returns of 68% in the last 1-year. The 3-year returns are 31.26%, while the 5-year returns are 21.37%. This is pretty good and compares well with most other funds in its category. It must be noted that the returns are good, thanks to an upsurge in the Indian and the global stock markets over the last 1-year.
One can start a Systematic Investment Plan under the fund with a small sum of Rs 1,000 every month. This fund has invested as much as 97% in stocks and the balance in debt instruments. Flexi cap funds are funds that tend to invest across market capitalizations and hence offer the fund manager some dynamism in managing the portfolio. PGIM India Flexi Cap Fund has holdings in stocks like Infosys, ICICI Bank, L&T and HDFC.
UTI Flexi Cap Fund
This is another fund that is ranked NO 1 by Crisil. The returns are slightly lower than that of PGIM India Flexi Cap Fund and the 1-year returns are placed at around 58.67, while the annualized while the 3-year returns are around that 21% mark.
The fund has holdings in stocks like Bajaj Finance, HDFC Bank, L&T Infotech, Kotak Mahindra Bank, HDFC and Infosys. One can start an SIP with a small sum of Rs 500 each month in the UTI Flexi Cap Fund.
The fund has invested as much as 97.6% in equities and the balance is held in cash. We believe that investors who are looking at a long-term can invest in these funds.
Avoid lumpsum investment
We at goodreturns.in have been telling investors to stay cautious on the markets with the Sensex at 60,000 points. Most analysts believe that the markets are over priced at the current levels. In fact, according to one brokerage firm the markets are at a premium to long term averages by almost 15 to 20%. Therefore, please be careful even while investing in mutual funds.
Investors are advised caution as investing in mutual funds is risky. The report is for informational purposes and Greynium Information Technologies, the author and the brokerage would not be responsible for any losses incurred by investors based on the report above