Flexi-cap mutual fund schemes have emerged as the most popular mutual category given the market volatility and concern over valuation across sectors.
The inflows into flexi-cap funds have been increasing steadily and increased 48 per cent to ₹22,362 crore against ₹15,116 crore in the June quarter.
In the same period, the asset under management of the industry has jumped 5 per cent to ₹5.08 lakh crore against ₹4.83 lakh crore, according to the Association of Mutual Funds of India data.
In fact, flexi cap has become the largest category in terms of asset management size.
Among individual fund houses, HDFC Flexi Cap has given an absolute 5-year return of 255 per cent and close to 350 per cent in the last ten years and leads the flexi-cap performance.
HDFC Flexi Cap, one of the oldest in this category, has given an absolute return of a whopping 206 times since its inception about 30 years ago.
JM Flexi Cap Fund clocked in a return of 217 per cent and Edelweiss Flexi Cap returned 165 per cent.
The strong performance has made newer entrants such as JioBlackRock MF, Capital Mind MF and the Wealth Company MF to chase the flexi-cap category.
Since flexi cap mutual funds invest across market caps, they have the capability to manoeuvre the market to deliver better returns for investors and showcase fund house’s expertise.
DD Sharma, Managing Director, MF King said while there is no shortage of flexi-cap funds in the industry, investors should opt for funds with a proven track record with a long history of performance.
Just like any other category of mutual funds, investment in flexi cap funds comes with a word of caution, he said.
Kapil Holkar, Founder & CEO, Equations said while technology driven investment strategies are fast emerging, there are no performance benchmarks for them and in the long run nothing can replace the experience and performance of a fund manager.