Top 7 Flexi Cap Mutual Funds That Doubled Investments in 5 Years

Flexi Cap Mutual Funds have become increasingly popular among investors due to their ability to invest in market capitalizations of any size, from large-cap, mid-cap, to small-cap stocks. Flexi Cap Mutual Funds provide flexibility to adapt to changing market conditions, allowing investors to generate wealth in the long run. Over the past five years, certain top-performing Flexi Cap Mutual Funds have provided brilliant returns, turning an initial investment of Rs.1 lakh into Rs.2.5-3.8 lakhs.

Flexi Cap Mutual Funds

Flexi Cap Mutual Funds invest in companies across different market caps, balancing the stability of large-cap stocks with the high-growth potential of mid-cap and small-cap stocks. While big-cap investment offers stable but modest returns, mid-cap and small-cap shares carry greater risk but superior growth opportunities over the medium to long term.

How Investments Grew Over Five Years?

An investor who had put Rs.1 lakh in one of the best-performing Flexi Cap funds five years ago would have seen significant appreciation in their wealth. Below is a closer look at the top seven Flexi Cap Mutual Funds that have given remarkable returns over the years.

Top 7 Flexi Cap Mutual Funds and Their Performance

1. Quant Flexi Cap Fund

• Investment Approach: Follows an aggressive approach with focused investments in high-growth stocks across market caps.
• Compounded Returns:
  • 1 Year: -2%
  • 3 Years: 17.3%
  • 5 Years: 31.03%
  • 10 Years: 19.1%
• Key Insights: This fund has mirrored the highest returns in the last five years with its aggressive investment strategy and decent exposure to small-cap and mid-cap stocks. However, most funds under this management have underperformed over the past year due to regulatory issues, leading to negative returns. Investors should exercise caution.

2. Parag Parikh Flexi Cap Fund

• Investment Approach: A diversified fund that also invests in foreign equities to provide international exposure.
• Compounded Returns:
  • 1 Year: 18.0%
  • 3 Years: 18.7%
  • 5 Years: 24.7%
  • 10 Years: 18.5%
• Most Important Points: This is most suitable for long-term investment aiming at diversification in stocks of the global universe such as Alphabet, Amazon, and Meta.

3. JM Flexi Cap Fund

• Investment Style: A relatively lesser-known but high-performing fund with an impressive track record.
• Annual Returns:
  • 1 Year: 18%
  • 3 Years: 25%
  • 5 Years: 23%
  • 10 Years: 18%
• Key Insights: Though not very popular, this fund has had an excellent track record and is therefore an excellent investment for investors.

4. HDFC Flexi Cap Fund

• Investment Strategy: Diversified portfolio with the best mix of risk and return across market caps.
• Annualized Returns:
  • 1 Year: 19%
  • 3 Years: 23%
  • 5 Years: 23%
  • 10 Years: 15%
• Key Insights: A suitable option for risk-averse investors seeking stable returns with moderate risk exposure.

5. Franklin India Flexi Cap Fund

• Investment Approach: Invests in quality companies with good earning prospects.
• Average Annual Returns:
  • 1 Year: 14%
  • 3 Years: 18%
  • 5 Years: 21%
  • 10 Years: 15%
• Important Highlights: Best suited for investors looking for a mix of quality and growth stocks.

6. PGIM India Flexi Cap Fund

• Investment Strategy: Long-term growth of capital with high exposure to small-cap and mid-cap stocks.
• Annualized Returns:
  • 1 Year: 13%
  • 3 Years: 11%
  • 5 Years: 20%
• Key Insights: Most appropriate for those investors with a more aggressive investment style looking for high-growth prospects.

7. Edelweiss Flexi Cap Fund

• Investment Strategy: Follows a flexible strategy with dynamic asset allocation by market cap.
• Annualized Returns:
  • 1 Year: 16%
  • 3 Years: 18%
  • 5 Years: 20%
  • 10 Years: 15%
• Key Insights: A reliable choice for those seeking stability with reasonable risk exposure.

Are Flexi Cap Funds a Good Investment Option?

Flexi Cap Mutual Funds deliver the optimal risk-return trade-off by dynamically investing across various segments of the market. The funds mentioned above have delivered impressive returns over the past five years, growing investments significantly.

For those looking for high growth opportunities, Quant Flexi Cap Fund (excluding its recent one-year performance) and Parag Parikh Flexi Cap Fund are notable. Or, if stability and consistent long-term growth are the priorities, the HDFC Flexi Cap Fund and Franklin India Flexi Cap Fund can be the preferred ones.

Before investing, the risk tolerance, investment horizon, and diversification strategy must be established. Consulting a financial advisor is advisable for personalized investment decisions.