by | Mar 29, 2023 | Beginner’s guide, Mutual Funds | 0 comments
Best Flexi Cap Mutual Funds in India: When it comes to investing in equity funds, there are basically 3 categories that one could think about investing in. These categories are large-cap, mid-cap, and small-cap funds. This categorization of investment mainly depends on the market capitalization wherein these funds are invested.
Herein the article we will go through what Mutual Funds mean, an introduction to Flexi Cap mutual funds, the importance & features of the same, and thereby list the Best Flexi Cap mutual funds in India. Keep reading to find out!
Table of Contents
Mutual Fund is a collective investment vehicle that collects & pools money from various investors and invests it in equities, bonds, government securities, and money market instruments.
Money that has been collected and flows into the Mutual Fund schemes is invested by professional fund managers. They invest in segments like stocks and bonds etc in alignment with the scheme’s investment objective.
The Securities and Exchange Board of India (SEBI), on 9th November 2020, announced the introduction of Flexi-cap funds. A Flexi-Cap fund meaning is an investment that allows you to tap into investments in various fields of market capitalization and the same is specified in the fund’s prospectus.
It offers investment options and diversification opportunities to fund managers by investing in high-quality companies regardless of market capitalization, whether large-cap, mid-cap, or small-cap.
One of the most important factors that make Flexi-cap funds attractive and the most favored by investors these days is during a situation of economic uncertainty, a Flexi-cap fund can provide the best returns of any mutual fund.
They are well-balanced funds that could generate stable returns even in bear markets. The more diverse the portfolio mix, the more optimal the balance of the fund’s risk and return aspects ensuring suitable returns.
In the cases where the markets inhibit volatility, Flexi-cap funds automatically allocate their investments to the best opportunities available to grow their investments. These funds strive hard to safeguard the portfolio of investments from witnessing a sharp downfall which generally takes place with dead/underperforming stocks.
Flexi-cap finances make investments greater than 65 percent of the property in equities and other associated instruments. They spend money on all spectrums of capitalization without limiting themselves. Transferring from one market capitalization to another is possible in such kind of Mutual Funds in case the fund is not performing as expected.
Due to its flexibility, the management of the portfolio is possible wherein it can adjust among capital marketplace segments and invest in corporations that are performing well and exiting the underperforming options.
Now that we are done with the basic overview of the industry and equipped ourselves with the terminologies, the below list represents the top Flexi-Cap stocks in India with the main focus on the assets under management (AUM).
The following list is based on the ‘Direct’ Plan schemes of the funds which means an investor has to invest directly with the AMC with no distributor facilitating the transaction. Let us have a look one by one.
Kotak Flexi Cap Fund is keen to identify sectors that are likely to perform well over the medium term and takes focus exposures to the same. The investment objective of the fund is the generation of long-term capital appreciation from a portfolio of equity and related securities. The fund was established on January 1st, 2013.
With an AUM base of approximately Rs 35,775 crores, the fund performs its operations while maintaining an expense ratio of 0.68 percent. The exit load for the company is 1 percent for 0-1 year and 0 percent for a period of more than 1 year. The minimum investment value on a SIP basis is Rs 500 and on a lumpsum basis, it is Rs 5,000.
It has the majority of its money invested in the Financial Services, Information Technology, and Automobile & Auto Components sectors. Its top four holdings are ICICI Bank (9.46%), Infosys (5.82%), L&T (5.42%), and HDFC Bank (5.14%).
The fund has provided 3-year annualized returns of 23.32 percent which is lower than the benchmark’s return of 27.97 percent. It has provided 5-year annualized returns of 10.37 percent which is lower than the benchmark’s returns of 11.47 percent.
Mr. Harsha Upadhyaya is a BE (Mechanical) from the National Institute of Technology, Suratkal, a Post Graduate in Management (Finance) from IIM Lucknow, and a Chartered Financial Analyst. He has nearly two decades of experience which is spread over Equity Research and Fund Management.
In his prior experiences, he has been associated with companies such as DSP BlackRock, UTI Asset Management, Reliance Group, and SG Asia Securities.
The fund is an open-ended dynamic equity scheme investing in companies that are likely to achieve above-average growth, enjoy distinct competitive advantages, and have superior financial strength. The fund was established on January 1st, 2013.
The scheme follows an equity strategy to build a portfolio that represents a cross-section of companies diversified across major industries, economic sectors, and market capitalization that offers an acceptable risk-reward balance.
With an AUM base of approximately Rs 31,673 crores, the fund performs its operations while maintaining an expense ratio of 1.00 percent. The exit load for the company is 1 percent for 0-1 year and 0 percent for a period of more than 1 year. The minimum investment value on a SIP basis is Rs 500 and on a lumpsum basis, it is Rs 5,000.
It has the majority of its money invested in the Financial, Energy, Technology, and Healthcare sector. Its top four holdings are ICICI Bank (9.53%), HDFC Bank (6.06%), Infosys (5.78%), and State Bank Of India (5.53%).
The fund has provided 3-year annualized returns of 33.45 percent which is higher than the benchmark’s return of 27.97 percent. It has provided 5-year annualized returns of 13.14 percent which is higher than the benchmark’s returns of 11.47 percent.
Ms. Roshi Jain is a Chartered Financial Analyst and has also completed her CA and PGDM courses from IIM Ahmedabad. Prior to joining HDFC Asset Management Company Limited, she was associated with Franklin Templeton Investments, Goldman Sachs (London), Goldman Sachs (Singapore), Wipro Ltd., and S. R. Batliboi & Co.
The fund follows a simple investment process. The fund managers attempt to profit from various cognitive and emotional biases displayed by companies and market participants. In other words, along with the dissection of financial statements, there will be an overlay of the study of human emotions.
Having strong conviction in the principle of compounding, it offers investors just the “Growth” Option. The fund was established on May 13th, 2013.
With an AUM base of approximately Rs 29,953 crores, the fund performs its operations while maintaining an expense ratio of 0.75 percent. The exit load for the company is 2 percent for 0-1 year, 1 percent for 1-2 years, and 0 percent for a period of more than 2 years. The minimum investment value on a SIP basis is Rs 1,000 and on a lumpsum basis as well it is Rs 1,000.
It has the majority of its money invested in the Financial, Services, Technology, and Consumer Staples sector. Its top four holdings are HDFC (7.81%), ITC (7.63%), Bajaj Holdings & Investment (7.53%), and ICICI Bank (5.57%).
The fund has provided 3-year annualized returns of 33.53 percent which is higher than the benchmark’s return of 27.69 percent. It has provided 5-year annualized returns of 17.53 percent which is higher than the benchmark’s returns of 11.40 percent.
Mr. Raj Mehta, is a Commerce Graduate from the University of Mumbai, a fellow Member of ICAI, and a CFA charter holder. Beginning his career as an intern with PPFAS Mutual Fund in 2012, he swiftly moved up the ranks and is currently part of the Fund Management team.
Mr. Rajeev Thakkar is a CA, Cost Accountant, CFA, and CFP and has been associated with PPFAS AMC since 2013.
Mr. Rukun Tarachandani has done B Tech (Information Technology), PGPM (Finance), CFA, and CQF. Prior to joining PPFAS Mutual Fund, he was associated with Kotak Mutual Fund, Goldman Sachs, and Unnati Investment Management & Research Group.
The scheme mainly aims to provide growth of capital and regular dividend from a portfolio of equity, debt, and money market instruments and focus on wealth-creating companies across all sectors and market cap ranges. The fund was established on January 1st, 2013.
With an AUM base of approximately Rs 9,989 crores, the fund performs its operations while maintaining an expense ratio of 1.10 percent. The exit load for the company is 1 percent for 0-1 year and 0 percent for a period of more than 1 year. The minimum investment value on a SIP basis is Rs 500 and on a lumpsum basis, it is Rs 5,000.
It has the majority of its money invested in the Financial, Technology, Consumer Staples, and Energy sector. Its top four holdings are HDFC Bank (8.81%), ICICI Bank (8.56%), Infosys (6.11%), and Axis Bank (5.49%).
The fund has provided 3-year annualized returns of 29.95 percent which is higher than the benchmark’s return of 27.97 percent. It has provided 5-year annualized returns of 11.13 percent which is lower than the benchmark’s returns of 11.47 percent.
Mr. R Janakiraman is a B.E and PGDM (Business Management). Prior to joining Franklin Templeton Investments, he worked with Indian Syntans Inv. Pvt. Ltd., Citicorp Information Tech Ltd., and UTI Securities Exchange Ltd.
Mr. Anand Radhakrishnan is a B.Tech, CFA, and PGDM from IIM Ahmedabad. Prior to joining Franklin Templeton Investments, he worked with Sundaram Asset Management Ltd., SBI Funds Management, and Asian Convertible and Income Fund.
The primary investment objective of the scheme is to seek to generate consistent returns by investing in a portfolio of Large Cap, Mid Cap, and Small Cap companies. The fund has the discretion to completely or partially invest in any of the securities stated above with a view to maximizing the returns or on defensive considerations. The fund was established on January 1st, 2013.
With an AUM base of approximately Rs 1,045 crores, the fund performs its operations while maintaining an expense ratio of 0.58 percent. The exit load for the company is constant at 0 percent. The minimum investment value on a SIP basis is Rs 1000 and on a lumpsum basis, it is Rs 5,000.
It has the majority of its money invested in the Financial, Energy, Consumer Staples, and Metals & Mining sector. Its top four holdings are Reliance Industries (9.17%), ITC (8.67%), State Bank Of India (7.02%), and HDFC Bank (6.07%).
The fund has provided 3-year annualized returns of 46.23 percent which is way higher than the benchmark’s return of 27.69 percent. It has provided 5-year annualized returns of 17.09 percent which is higher than the benchmark’s returns of 11.40 percent.
Mr. Sandeep Tandon has 23 years of experience in the financial services industry. Associated with the industry for more than 2 decades, some of his roles include playing a key role in setting up the equity derivatives desk at ICICI Securities as vice president. He started his career with the Economic Times Research Bureau, a research wing of the leading financial daily of India, The Economic Times.
Mr. Sanjeev Sharma is a Commerce Graduate and PGDBA (Finance) from Symbiosis, Pune. He has a total work experience of 17 years including 13 years of experience in the financial market. He specializes in identifying crucial inflection points in securities.
Mr Ankit A Pande has done CFA and MBA. Prior to joining Quant Mutual Fund, he was associated with Infosys Finacle.
Mr. Vasav Sahgal pursued his B.Com. and CFA. Prior to joining Quant Mutual Fund, he worked with Eqestar capital as Equity Research Analyst.
In this article, we took a look at some of the best Flexi Cap mutual funds in India. We took a look at their annualized returns, top holdings, expense ratio, exit load, and many more factors which are relevant before making any investment decision into the schemes. It is essential to mention and give a heads-up that mutual funds are subject to market risks.
It is important to read all scheme-related documents carefully before any decision is made. One can consider other securities for creating a diversified portfolio.
That is all from my side, hope you enjoyed reading the article and were able to get some observations on your end. Have a great day, and happy investing!
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