Final Up to date on Dec 26, 2024 by Vanessa Sequeira
In case you are involved about market volatility and are not sure about which market capitalisation to wager on, flexi-cap funds could be your ally. Flexi-cap funds are comparatively new to the fairness funds pack. These funds could be invested in firms throughout market caps with none restrictions. You possibly can make investments one time or do the due diligence to decide on the most effective flexi cap fund for SIP, as these funds are identified to supply constant returns.
On this article, we’ll delve deeper into understanding flexi-cap funds and their advantages, and likewise, through the use of Tickertape Mutual Fund Screener, we’ll discover the most effective flexi-cap funds in 2024.
Checklist of the High 10 Flexi Cap Mutual Funds (2024)
| Title | AUM (in Cr.) | CAGR 3Y (%) | Expense Ratio | CAGR 5Y (%) |
| Quant Flexi Cap Fund | 7,331.43 | 21.91 | 0.59 | 33.46 |
| Parag Parikh Flexi Cap Fund | 84,640.59 | 18.55 | 0.63 | 26.65 |
| JM Flexicap Fund | 5,012.19 | 29.48 | 0.52 | 26.32 |
| ICICI Pru Retirement Fund-Pure Fairness Plan | 1,049.69 | 24.93 | 0.72 | 26.08 |
| HDFC Retirement Financial savings Fund-Fairness Plan | 6,009.36 | 22.30 | 0.71 | 25.65 |
| HDFC Flexi Cap Fund | 64,928.56 | 26.33 | 0.77 | 23.94 |
| Franklin India Flexi Cap Fund | 17,808.37 | 21.46 | 0.91 | 23.85 |
| PGIM India Flexi Cap Fund | 6,337.68 | 12.78 | 0.43 | 23.46 |
| Edelweiss Flexi Cap Fund | 2,445.93 | 22.20 | 0.43 | 23.15 |
| HSBC Flexi Cap Fund | 5,048.46 | 20.67 | 1.16 | 22.29 |
Notice: The above data is dated 18th December 2024. The parameters used to filter the checklist of prime flexi cap mutual funds on Tickertape’s Mutual Fund Screener are:
- Class > Fairness > Flexi cap funds
- Plan – Development
- 5Y CAGR: Set excessive to low
🚀 Professional Tip: Use Tickertape’s Mutual Fund Screener to filter and evaluate funds primarily based on efficiency, expense ratio, and danger. Discover funds that match your objectives and danger tolerance for smarter funding decisions.
Overview of the Finest Flexi Cap Mutual Funds
Quant Flexi Cap Fund
Quant Flexi Cap Fund, managed by Quant Cash Managers Restricted, focuses on a diversified strategy throughout market capitalizations. Established in December 1995, it was permitted by SEBI as an Asset Administration Firm in 2017. With a Sharpe Ratio of 1.10, the fund gives a balanced risk-return profile. It imposes a 1.00% exit load and requires a minimal lumpsum funding of ₹ 5,000, making it appropriate for traders in search of average returns with managed withdrawal restrictions. For traders in search of the most effective flexi cap fund for SIP, this might be an possibility value exploring
Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund, managed by PPFAS Asset Administration Personal Ltd., stands out with a Sharpe Ratio of two.04, reflecting superior risk-adjusted returns. Established in 2012, the fund adheres to SEBI license plate MF/069/12. It has a relatively low minimal lumpsum funding of ₹ 1,000 and imposes a 2.00% exit load, making it a beautiful possibility for long-term traders in search of excessive returns with flexibility. This fund is usually ranked among the many prime flexi cap funds for its efficiency and suppleness.
JM Flexicap Fund
JM Flexicap Fund, managed by JM Monetary Asset Administration Personal Restricted, has been working since 1993-94 as a subsidiary of the JM Monetary Group. It boasts a Sharpe Ratio of 1.86 and gives a 1.00% exit load with a minimal lumpsum funding of ₹ 1,000. This fund offers a balanced strategy to fairness investments throughout completely different market segments, interesting to each conservative and aggressive traders. For these trying to diversify their portfolio, this fund can be among the many prime 5 flexi cap fund decisions.
ICICI Pru Retirement Fund – Pure Fairness Plan
ICICI Pru Retirement Fund – Pure Fairness Plan, managed by ICICI Prudential Asset Administration Firm Ltd., is tailor-made for retirement-oriented fairness investments. With a Sharpe Ratio of 1.56, the fund emphasises long-term wealth creation with no exit load, and a minimal lumpsum requirement of ₹ 5,000. This makes it excellent for traders trying to construct a retirement corpus with minimal withdrawal constraints. It additionally earns a spot in discussions round the most effective flexi cap funds for retirement planning.
HDFC Retirement Financial savings Fund – Fairness Plan
HDFC Retirement Financial savings Fund – Fairness Plan, managed by HDFC Asset Administration Firm, focuses on wealth accumulation for retirement by way of fairness investments. With a Sharpe Ratio of 1.55 and no exit load, it offers flexibility for traders. The minimal lumpsum funding is ₹ 100, making it accessible for a wider vary of traders planning for long-term monetary safety. As one of many prime flexi cap funds, it combines affordability with development potential.
What Are Flexi Cap Funds?
Flexi-cap funds have been launched by the Securities and Trade Board of India (SEBI) on eighth November 2020. These mutual funds are open-ended, dynamic investments that allocate not less than 65% to fairness and equity-related devices throughout market capitalisations.
Fund managers of flexi-cap funds can spend money on firms of all sizes with out restrictions on particular segments. For instance, large-cap funds can solely make investments as much as 20% in mid- and small-cap firms, whereas flexi-cap funds haven’t any such limits. This distinction highlights why many traders query, is flexi cap fund good in comparison with different fund classes.
Since fund managers can goal engaging segments, flexi-cap funds typically present higher returns. They are perfect for long-term wealth creation with a 5-7 yr horizon. Traders often embody these funds of their flexi cap fund checklist or think about them when exploring the highest 5 flexi cap mutual funds.
Options of Flexi Cap Funds
- Numerous Market Capitalisation: Flexi-cap funds make investments throughout giant, mid, and small-cap shares, making a well-balanced portfolio. This diversification reduces danger whereas seizing development alternatives, making them in style in prime 10 flexi cap fund rankings.
- Dynamic Allocation: Flexi-cap funds dynamically modify portfolios primarily based on market circumstances, bettering returns by shifting towards favorable alternatives. This flexibility helps determine which flexi cap fund is greatest for particular objectives.
- Potential For Enhanced Returns: With no constraints on market segments, flexi-cap funds capitalize on alternatives throughout the market spectrum. This broad strategy typically secures a spot among the many prime 5 flexi cap mutual funds.
- Efficient Danger Administration: By diversifying throughout sectors and market caps, flexi-cap funds mitigate market volatility and sector-specific dangers. This stability solutions the query, is flexi cap fund good for risk-conscious traders.
- Professional Fund Administration: Skilled fund managers analyze market developments and allocate property strategically. Their experience ensures funds rank excessive on any flexi cap fund checklist of constant performers.
- Suitability For Lengthy-Time period Funding Horizons: Flexi-cap funds are designed for long-term traders, with the potential to compound returns over time. Their adaptability to market adjustments makes them excellent for wealth constructing.
- Liquidity: Flexi-cap funds present liquidity, permitting traders to purchase or promote models usually. This flexibility ensures entry to funds when wanted with out delays.
Easy methods to Spend money on Flexi Cap Funds Utilizing Tickertape Mutual Fund Screener
Tickertape is a robust instrument for screening and evaluating numerous mutual funds. Right here’s how you should use it to spend money on Flexi Cap Funds:
- Go to Tickertape Web site: Go to the Tickertape web site and navigate to the Mutual Fund Screener part.
- Set Filters: Apply filters for Flexi Cap Funds to slender down your choices. You possibly can select from over 50 filters to create a customized filter tailor-made to your preferences.
- Evaluate Funds: Use the comparability characteristic to guage completely different funds facet by facet. This characteristic lets you see how every fund stacks up towards others by way of efficiency, danger, and different key metrics.
- Detailed Evaluation: Click on on particular person funds to see an in depth evaluation, together with historic efficiency, portfolio composition, and fund supervisor data. This detailed view will help you perceive the strengths and weaknesses of every fund.
- Make Knowledgeable Resolution: Based mostly on the evaluation, choose the fund that aligns along with your funding objectives and danger tolerance. Making an knowledgeable determination is essential to reaching your monetary goals.
Investing in Flexi Cap Funds could be a strategic solution to obtain a balanced and diversified funding portfolio. Through the use of instruments just like the Tickertape Mutual Fund Screener, you can also make knowledgeable selections and select the most effective funds that align along with your monetary objectives. At all times keep in mind to evaluate your danger tolerance and funding horizon earlier than making any funding selections.
Components to Contemplate Earlier than Investing in Flexi Cap Funds
Earlier than investing in flexi funds, it’s essential to guage these key components:
- Funding Goal: Decide whether or not a flexi cap mutual fund matches your monetary objectives, resembling wealth creation, retirement planning, or reaching a particular milestone. These funds present development alternatives by way of a diversified portfolio of enormous, mid, and small-cap shares. Aligning the fund’s goal along with your objectives is important when selecting the most effective flexi cap mutual funds.
- Danger Tolerance: Flexi funds contain publicity to completely different market segments, together with the unstable small-cap sector. Assess your danger tolerance to determine when you can deal with market fluctuations. This step is significant to make sure your investments align along with your monetary well-being.
- Fund Efficiency Historical past: Reviewing the previous efficiency of a flexi cap mutual fund can supply insights into its monitor file throughout completely different market circumstances. Search for constant long-term efficiency to guage how properly the fund supervisor navigates volatility. This evaluation is useful when evaluating funds within the flexi cap mutual fund checklist.
- Fund Administration Experience: The experience of the fund supervisor performs a major position within the efficiency of flexi funds. Analysis the supervisor’s expertise, technique, and adaptableness. A talented supervisor with a confirmed monitor file enhances the possibilities of sturdy returns, making it simpler to determine the most effective flexicap mutual fund.
- Expense Ratio and Charges: Consider the prices of investing in flexi cap funds, together with the expense ratio and extra charges. Increased charges can cut back your returns, so evaluate bills throughout funds. Be sure that the charges are justified by the potential returns, particularly when investing in the most effective flexi cap fund India gives.
4 Advantages of Investing in Flexi Cap Funds
- Portfolio Diversification: Flexi cap funds make investments throughout numerous industries, serving to cut back dangers related to a single sector. Diversification ensures larger stability throughout market volatility, making them a staple in any flexi cap mutual fund checklist.
- Managed by Seasoned Fund Managers: Skilled fund managers dynamically modify portfolios to minimise publicity to dangerous segments. This experience ensures your funding is protected throughout market corrections, making flexi funds a dependable selection for long-term stability.
- Funding Throughout Market Capitalisations: In contrast to large-cap funds, flexi cap funds can make investments freely in giant, mid, and small-cap firms. This flexibility permits fund managers to faucet into high-performing market segments, typically incomes these funds a spot among the many greatest flexi cap mutual funds.
- Publicity to International Markets: Flexi cap funds additionally spend money on overseas markets, providing international diversification. This publicity reduces reliance on home markets and unlocks extra development alternatives, making them a powerful contender for the most effective flexicap mutual fund in your portfolio.
Now that you simply perceive the advantages and issues, discover a flexi cap mutual fund checklist to search out the most effective flexi cap fund India has to supply. Analysis totally earlier than investing to make sure the fund aligns along with your objectives.
What Are the Dangers of Investing in Flexi-Cap Funds?
Whereas investing in the most effective flexi cap funds can supply important benefits, it’s equally vital to know the related dangers. Beneath are some key dangers to think about when evaluating the highest flexi cap funds to your portfolio:
- Market Danger: Flexi-cap funds are topic to market danger as a result of they spend money on fairness and equity-related devices. Market danger refers to the potential for losses on account of components affecting total market efficiency, resembling financial downturns, geopolitical occasions, or adjustments in sentiment.
- Volatility Danger: Since flexi-cap funds make investments throughout large-cap, mid-cap, and small-cap firms, they face volatility danger. These segments are usually extra unstable in comparison with large-cap shares, impacting the NAV of even the highest 5 flexi cap fund choices. Whereas diversification is a key benefit of the most effective flexi cap funds, it doesn’t fully get rid of the influence of market volatility.
- Administration Danger: The success of flexi-cap funds relies upon closely on fund managers’ selections. Poor funding decisions or failure to adapt to market adjustments can negatively have an effect on efficiency, even among the many prime flexi cap funds. Administration danger is a key issue to think about when selecting the right flexi cap funds to your portfolio.
- Focus Danger: Regardless of the flexibleness to speculate throughout sectors and market caps, flexi-cap funds should face focus danger. Over-allocating to a particular sector or a couple of shares may result in important losses if these sectors or shares underperform. Even the highest 5 flexi cap fund choices should stability their portfolios to mitigate this danger successfully.
- International Funding Danger: Flexi-cap funds investing in overseas markets face dangers resembling forex fluctuations, geopolitical instability, and differing market rules. This overseas funding danger can have an effect on returns, even in the most effective flexi cap funds that embody worldwide publicity.
- Liquidity Danger: Liquidity danger arises when flexi-cap funds, particularly these investing in mid-cap and small-cap shares, face challenges in promoting holdings at a good value on account of a scarcity of market consumers. This danger is extra evident throughout market stress, probably delaying redemption in a few of the prime flexi cap funds.
How Are Flexi-Cap Funds Taxed?
While you spend money on flexi-cap funds, it’s essential to know how they’re taxed. Flexi-cap funds are handled like different fairness mutual funds underneath Indian tax legal guidelines.
The Union Finances 2024 has launched important adjustments to the taxation of fairness mutual funds, simplifying the tax construction whereas altering charges and advantages. Here’s a detailed breakdown of the brand new tax guidelines:
- Tax-Free Restrict: Positive aspects as much as Rs. 1.25 lakh in a monetary yr stay tax-free. This restrict has been elevated from the earlier threshold of Rs. 1 lakh.
- Tax Price: Any positive aspects above Rs. 1.25 lakh are taxed at a flat fee of 12.5%. It was beforehand taxed at 10%.
- Indexation: It’s vital to notice that the advantage of indexation, which beforehand allowed traders to regulate the acquisition value of their property for inflation, has been eliminated for all asset courses, together with fairness mutual funds.
| Capital Positive aspects Tax | Holding Interval | Previous Price | New Price |
| Brief-Time period Capital Positive aspects (STCG) | Lower than 12 months | 15% | 20% |
| Lengthy-Time period Capital Positive aspects (LTCG) | Greater than 12 months | 10% | 12.50% |
Applicability of Fairness Funds Tax Guidelines
It’s vital to notice that these tax guidelines apply to flexi-cap funds as a result of they’re categorised as fairness funds. In response to the rules, a mutual fund scheme should make investments not less than 65% of its property in fairness or equity-related devices to be categorized as an fairness fund. Flexi-cap funds meet this requirement by investing in a mixture of large-cap, mid-cap, and small-cap shares, offering the flexibleness to regulate the portfolio in accordance with market circumstances.
Who Ought to Contemplate Investing in Flexi Cap Funds?
- Average Danger Tolerance: When you have a average danger urge for food, flexi cap funds could also be appropriate for you. These funds purpose to stability danger and reward by investing throughout numerous market caps.
- Lengthy-Time period Funding Horizon: Traders in search of long-term development may discover flexi cap funds interesting. The power to spend money on high-growth mid and small-cap shares, together with the steadiness of large-cap shares, could be helpful over the long run.
- Looking for Diversification: If you wish to diversify your portfolio, flexi cap funds is likely to be a good selection. These funds spend money on quite a lot of sectors and market caps, which can assist unfold danger.
- Lively Administration Choice: When you desire actively managed funds the place the fund supervisor makes dynamic funding selections, flexi cap funds could be a good match. The fund supervisor’s experience in shifting allocations primarily based on market circumstances can probably improve returns.
To Wrap Up
Flexi-cap funds could be a wonderful possibility for traders who search constant returns with none restrictions on market capitalisation. And when you’re contemplating investing in flexi cap funds, selecting the right plan to your SIP funding is essential. Subsequently, we extremely advocate that you simply do your due diligence earlier than selecting the most effective flexi cap fund for SIP.
Select the scheme that aligns along with your danger tolerance and funding objectives. Then, whether or not you need to go for a one-time funding or take the SIP route, both method, you may be certain that your funding portfolio is well-diversified and optimised for long-term wealth creation.
FAQs about the most effective flexi cap mutual funds
Do you have to spend money on flexi cap funds?
Which index do flexi cap funds monitor?
Flexi cap funds usually monitor Nifty 500 TRI and Nifty 50 TRI. These indices present a broad illustration of the market, capturing each large-cap and broader market efficiency.
What are the variations between a flexi-cap fund and a multi-cap fund?
Multi-cap funds managers should make investments a minimal of 25% in all three market capitalisations – large-cap, mid-cap, and small-cap. In distinction, flexi-cap funds haven’t any such restrict throughout the segments. This offers the fund managers flexibility to speculate throughout the market segments with none bias in direction of a specific market cap section.
Which is the most effective flexi cap fund to spend money on for the long run in India?
Since flexi-cap funds haven’t any restrictions available on the market section, traders with average to high-risk tolerance and an funding horizon of 5-7 yrs can discover these.
What’s the minimal funding required in flexi cap funds?
The minimal funding quantities for Flexi-cap Funds range by scheme. It will probably vary from Rs. 500 to Rs. 5,000.
