Top 3 flexi cap mutual funds with the highest SIP returns over 10 years
The no. 1 fund in the list turned a Rs 15,000 monthly SIP into Rs 73.43 lakh
Flexi-cap mutual funds offer a dynamic investment approach, allowing fund managers to allocate assets across large, mid, and Small-Cap stocks in any proportion.
According to the Securities and Exchange Board of India (SEBI), these funds must invest at least 65 per cent of their assets in equities. The flexibility of this investment strategy enables fund managers to adapt to market conditions by shifting investments between different market capitalisations. For instance, if small-cap stocks are underperforming, the fund manager can pivot to large or Mid-Cap stocks and vice versa.
As per data from Value Research as of August 28, 2024, the flexi cap mutual fund category has delivered impressive returns, with a 40.94 per cent annualised return over 1 year, 18.84 per cent over 3 years, 20.96 per cent over 5 years, and 14.68 per cent over 10 years.
This article highlights the top 3 flexi cap mutual funds based on 10-year annualized SIP returns, demonstrating how a Rs 15,000 monthly SIP has grown in each of these funds over the decade.
Top 3 best-performing Flexi Cap Funds over a 10-year period
|
Rank
|
Fund Name
|
Annualized SIP Returns (10 Years)
|
CAGR Since Inception
|
AUM (Rs crore)
|
NAV (Rs)
|
Total SIP Value (Rs 15,000/month for 10 years)
|
|
1
|
Quant Flexi Cap Fund
|
26.51%
|
21.91%
|
7,436
|
119.6816
|
Rs 73,42,601
|
|
2
|
JM Flexicap Fund
|
23.95%
|
20.47%
|
3,855
|
121.7387
|
Rs 63,93,054
|
|
3
|
Parag Parikh Flexi Cap Fund - Direct Plan
|
21.85%
|
21.03%
|
75,956
|
85.5251
|
Rs 57,04,763
|
*Data as of August 30, 2024.
Key Features and Benefits
- Diversification: By investing across different market capitalizations, Flexi Cap Funds reduce the risk associated with any single market segment. This broad diversification helps in cushioning the portfolio during market volatility.
- Flexibility: Fund managers can shift their allocation between large, mid, and small-cap stocks based on market opportunities and economic outlook, potentially enhancing returns.
- Balanced Risk-Reward: These funds offer a balanced risk-reward proposition, combining the stability of Large-Cap stocks with the growth potential of mid and small-cap stocks.
Who should invest in flexi-cap funds?
For investors looking to build a robust portfolio with the flexibility to adapt to market changes, Flexi Cap Funds stands out as a compelling choice.
Conclusion
Flexi Cap Funds are an excellent investment option for those seeking long-term wealth creation through equity markets. Their ability to invest across market capitalizations offers a balanced approach to risk and reward. The top-performing funds in this category have demonstrated the potential to generate substantial wealth over the long term. A systematic investment plan (SIP) of Rs 15,000 in these funds over the last 10 years could have grown into a sizeable corpus, reflecting the power of compounding and disciplined investing.
Disclaimer: The article is for informational purposes only and not investment advice.