Investing in mutual funds has gained popularity lately, with many investors eyeing the returns they can potentially generate.
Among various considerations when investing in mutual funds, like the reputation of the fund house and prevailing economic conditions, the return on investment often outweighs others.
Flexi cap mutual funds have performed better compared to others over the past year.
What are flexi cap mutual funds?
These are mutual fund schemes that allocate a minimum of 65% of their assets in equity and equity-related instruments.
They operate as open-ended dynamic equity schemes, investing across large-cap, mid-cap, and small-cap stocks, as outlined by Sebi’s circular on Nov 6, 2020.
The circular also allows fund houses to convert their existing schemes into flexi cap schemes, provided they adhere to the stipulated requirements.
Which mutual fund schemes have given the best returns?
According to Association of Mutual Funds in India (AMFI) data, as of April 30, 2024, there are 39 schemes in this category, collectively managing assets worth nearly Rs 3.65 lakh crore.
Among these, five flexi-cap mutual fund schemes have yielded returns exceeding 45% in the past year.
The highest return of 68.27% was achieved by the Bank of India Flexi Cap Fund, compounding a Rs 2 lakh investment into Rs 3.36 lakh.
It is followed by JM Flexicap Fund at 67.03%. This shows that an investment of Rs 2 lakh one year ago would have grown to Rs 3.34 lakh.
Quant Flexi Cap Fund achieved a return of 63.31%, compounding the Rs 2 lakh amount to Rs 3.26 lakh.
Motilal Oswal Flexi Cap Fund offered a 52.83% return, resulting in Rs 2 lakh having griown into Rs 3.05 lakh.
Similarly, ITI Flexi Cap Fund returned 52.27%, compounding the investment to Rs 3.04 lakh.
