These 10 flexi cap schemes delivered over 15% annualised return in the past 10 years

If you are toying with the idea of investing in a mutual fund scheme, there are a number of factors that could be playing in your head which may influence your choice. These include the category of scheme, reputation of fund house and the size of fund, among others. What, however, swings the odds in favour or against the scheme is the past performance delivered by it.

We have shortlisted the best performing mutual fund schemes in the flexi-cap category based on their past 10-year performance. We discovered that there are around 10 mutual fund schemes which have given an annualised return of over 15 percent in the past one decade.

This category was announced not too long ago via a Sebi circular dated Nov 6, 2020. There are 39 schemes in this category with total assets under management (AUM) amounting to ₹4.29 lakh crore, which is second-highest among equity oriented funds after sectoral/thematic funds which have a total AUM of ₹4.449 lakh crore.

This means if someone had invested ₹one lakh in any of these schemes, it would have swelled to over ₹4.04 lakh (based on 15 percent return) by now. For the unversed, a flexi cap scheme is an open-ended dynamic equity scheme which is mandated to invest a minimum of 65 percent in equity and equity-related instruments across large cap, mid cap and small cap stocks.

There are over 1.56 crore folios in this category of mutual funds, reveals the AMFI data as on Aug 31, 2024.

Following the launch of this category in Nov 2020, mutual fund houses were even given an option to convert existing schemes into a flexi cap fund. So, the following schemes must be these converted schemes whose 10-year returns are listed below.

Based on the size of assets, the largest schemes are Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Fund. Meanwhile, it is vital to realise for retail investors that the past performance of mutual funds does not guarantee their future results. 

Two mutual fund houses roll out new schemes on tech theme; should you invest?

A couple of mutual fund houses have recently rolled out new fund offers (NFOs) on the information technology (IT) and software theme. These schemes are Motilal Oswal Digital India Fund and White Oak Capital Digital Bharat Fund. The former will be launched for public subscription on October 11 and close on October 25.

Similarly, White Oak AMC's Capital Digital Bharat Fund was launched on September 20 and closed on Friday, October 4.

What is the main objective of investing in this fund?

The primary investment objective of the scheme is to generate long-term capital growth by predominantly investing in digital and technology-dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce, and other companies engaged in or leveraging digitisation.

How can you invest in this scheme?

You can invest ₹500 in the new fund offer and in multiples of Re 1 thereafter. For lumpsum, you can invest ₹500 and in multiples of Re 1 thereafter. Those who want to invest via a systematic investment plan (SIP) can invest ₹100 daily, ₹500 weekly, fortnightly or monthly and ₹1,500 quarterly.

Are there similar mutual funds in the market?

Tata Mutual Fund runs a similar scheme called Tata Digital India Fund. As mentioned above, White Oak Mutual Fund has launched Capital Digital Bharat Fund.

Where will the scheme invest?

The scheme will invest a minimum of 80 per cent in equity and equity-related instruments of technology-driven companies engaged in the digitisation space and a maximum of up to 100 per cent. The allocation to equity of companies other than these would be anywhere between 0 and 20 per cent.

Are there any entry or exit loads to this scheme?

The scheme has an exit load of 1 per cent if redeemed on or before 3 months from the date of allotment. There will be nil exit load if redeemed after 3 months from the date of allotment.

Who will manage this scheme?

The scheme will be managed by fund managers Ajay Khandelwal, Niket Shah, Santosh Singh, Atul Mehra, Rakesh Shetty and Sunil Sawant.

Does the fund contain any inherent risk?

According to its risk-o-metre, the scheme carries very high risk and is, therefore, suitable for investors seeking long-term capital appreciation.