Flexi cap mutual funds offered average return of 31% in 2021

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The flexi cap mutual funds category has given an average return of around 31.44% in 2021. The category has offered 29.69% returns in this year till date. According to Value Research, there are around 55 schemes that have completed a year in the category.

The topper in the category – Parag Parikh Flexi Cap Fund – offered around 47% in 2021, according to Value Research. Around 13 flexi cap schemes managed to offer more than 40% returns in this calendar year. Around 38 schemes have managed to offer around 30% returns in the year.

S&P BSE 500 TRI benchmark offered around 29% returns in the year. Around 40 flexi cap schemes managed to beat the benchmark return.

The toppers in the category were:

Scheme name 1-year returns (%)
Parag Parikh Flexi Cap Fund 47.43
BOI AXA Flexi Cap Fund 47.40
PGIM Ind Flexi Cap Fund 45.98

Source: value researchThe laggards in the category were:

Scheme name 1-year returns (%)
Motilal Oswal Flexi Cap Fund 14.64
LIC MF Flexi Cap Fund 19.41
Shriram Flexi Cap Fund 19.87

Source: value researchFlexi cap mutual funds became a hot favourite of many investors lately. The scheme has attracted Rs 2,14,649.76
crore in 2021. According to mutual fund advisors, most investors like the flexibility these offer to the fund managers. Fund managers have the freedom to invest across market capitalisations and sectors in these schemes.

However, investors should pay attention to the details of the scheme before choosing one. A cursory glance at the category reveals that apart from plain vanilla flexi cap schemes, there are also retirement schemes, focused schemes, fund of funds, index schemes and so on that are part of the category.

According to advisors, investors should also focus on the investing style of the scheme. Though these schemes have been around hardly a year ago, investors should pay attention to the investing strategy of the scheme. Sebi introduced the flexi cap category in November 2020.

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