Flexi cap funds have emerged as a popular choice among investors looking for diversified investment options within the mutual fund space. Flexi cap funds have become a preferred choice for retail investors, in particular, as most funds under this category have delivered amazing returns across time horizons. If we see the Amfi’s December data, 79.49% flexi cap schemes outperformed the benchmark in December 2024. At present, there are around 44 flexi cap funds offered by mutual fund houses.
In this write-up, we will analyse two top-performing flexi cap funds — Quant Flexi Cap Fund (Regular) and Parag Parikh Flexi Cap Fund (Regular). Here, we will be comparing their performance over 1-year, 5-year and 10-year periods. These funds have consistently ranked as the top two performers based on their long-term returns.
Notably, Parag Parikh Flexi Cap Fund has also delivered strong returns over the past one year. In contrast, Quant Flexi Cap Fund has posted a negative return over the same period.
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Let’s take a closer look at their 1-year, 5-year and 10-year performances, along with key details for comparison.
Quant Flexi Cap Fund Regular
1-year return on lump sum: -2.39%
1-year SIP return: -15.96%
5-year annualised return on lump sum investment: 30.19%
5-year SIP return: 24.84%
10-year annualised return on lump sum investment: 18.05%
10-year SIP return: 21.13%
Launch date: 15 October 2008
Return since launch: 14.60%
Benchmark: NIFTY 500 TRI
Assets under management (AUM): Rs 7,185 crore
Expense Ratio: 1.80%
Riskometer: Very High
Quant Flexi Cap Fund top holdings:
In Quant Flexi Cap Fund, Reliance Industries holds the highest weight at 9.27%, followed by ITC at 9.05%. Bajaj Finance accounts for 6.64%. Samvardhana Motherson and Adani Power have allocations of 5.95% and 5.53%, respectively. Other key holdings include LIC (4.48%), Swan Energy (4.22%), Jio Financial (4.09%), and Aurobindo Pharma (3.89%).
Parag Parikh Flexi Cap Fund Regular
1-year return on lump sum investment: 18.44%
1-year SIP return: 13.81%
5-year annualised returns on lump sum investment: 23.73%
5-year SIP returns: 23.43%
10-year annualised returns on lump sum investment: 17.55%
10-year SIP returns: 20.13%
Launch date: 24 May 2013
Returns since launch: 19.52%
Benchmark: NIFTY 500 TRI
Assets under management (AUM): Rs 87,539 crore
Expense Ratio: 1.33%
Riskometer: Very High
Top holdings of Parag Parikh Flexi Cap Fund:
HDFC Bank holds the highest allocation at 8.04%, followed by Bajaj Holdings at 7.22%. Power Grid and Coal India have significant weightages of 6.54% and 5.76%, respectively. ITC holds 5.47%, while ICICI Bank has 4.93% and HCL Technologies 4.10%. Maruti Suzuki holds a 3.77% share.
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Where should you invest?
Both Quant Flexi Cap Fund and Parag Parikh Flexi Cap Fund, mandated to invest a minimum of 65% in equity stocks, give investors flexibility to navigate under varied market conditions. Both these funds have invested in a diversified portfolio across largecap, midcap and smallcap companies.
When it comes to investment decisions, there would be many who would feel that the lower expense ratio of Parag Parikh Flexi Cap makes it an attractive option, especially for cost-conscious investors. On the other hand, some may prefer Quant Flexi Cap Fund as the fund has given better returns over mid to long-term horizons.
Here one thing as an investor you need to understand is the investment decision should be based on factors like investment horizon, risk tolerance and portfolio composition. After analysing both funds’ returns, we have seen that Quant may have performed well on 5 and 10-year horizons but Parag Parikh Flexi Cap Fund has been a consistent performer in short term (1 year) and medium to long term (5-year and 10-year periods).
Flexi cap funds risks:
Flexi cap funds are a high-risk investment option that can be volatile and subject to market fluctuations. They can be a good choice for investors with a moderate to high-risk tolerance who want to diversify their portfolios. However, the risk depends on the fund manager’s decisions and the fund’s allocation to different market caps.
Flexi cap funds suit long-term investors who can stay invested to benefit from market trends and compounding returns. With their dynamic asset allocation, these funds are best for those with moderate to high-risk tolerance looking for capital growth.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.