Largecap mutual funds provide stable returns. Midcap and Smallcap funds outperform in specific cycles. However, if you are an investor who do not want to shift your funds between large cap and mid cap/Smallcap funds, then you can consider investing in flexicap mutual funds. These funds have the flexibility to invest across market capitalization or themes. What are Flexi Cap Mutual Funds? Which are the Best Flexi Cap Mutual Funds to invest in 2022 in India? Who can invest in these flexicap funds?
Also Read: The Best Balanced Mutual Funds for 2022
What are Flexi Cap Mutual Funds?
Flexi Cap Mutual Funds invests across market capitalizations. Fund manager can invest in large cap or mid cap or Smallcap without any boundaries.
Let me provide some insights as to how these funds can benefit investors.
Largecap – Nifty100 – This index has generated 17.7% returns since inception and 15% annualized returns in last 5 years. However, this index underperformed and generated minor returns during 2018 to mid of 2020.
Nifty Midcap 150 – This index has generated 17% returns since inception and 15% annualized returns in last 5 years. Again, this index underperformed and generated low returns during 2010 to 2014 and 2017 to mid of 2020.
Nifty Smallcap 250 – This index has generated 15% returns since inception and 12% annualized returns in last 5 years. Even this index underperformed and generated low returns during 2010 to 2014 and 2019 to mid of 2020.
If you are a mutual fund investor, after seeing above performance, you might think of shifting between large cap funds to mid cap or Small cap funds during those specific times. However, this is a painful process as you do not which segment might perform well. In this scenario, flexicap mutual funds can help you to some extent (while fund manager intervention is required).
Here are the benefits of investing in Flexi Cap Mutual Funds.
1) Fund Managers have a choice of investing across market capitalization like large cap, mid cap or Small cap stocks.
2) The portfolio is well diversified, which contains large cap companies, Midcap companies and smallcap companies. While large cap companies can provide stable returns, Midcap and Small cap stocks could be multibaggers. There are many Small cap stocks that tripled in the 3 time frame itself.
3) Beyond market capitalization, the fund can invest in any specific theme too. It could be infra theme, consumption theme etc., without any boundaries.
4) Investors would get benefited with risk and reward with such diversified portfolio.
Who can invest in Flexi Cap Mutual Funds?
Investors falling in below criteria can invest in these funds:
Who are looking for diversified portfolios with minimal count of mutual funds in their portfolio.
Investors with moderate to high risk appetite.
Investors who are willing to invest for 5+ years.
How we filtered these Top Flexicap Funds for 2022?
There are 32 pure flexicap mutual funds in India. We could see that in this bull run majority of the funds able to generate over 12% annualized returns in the last 3 to 5 years. Here is the criteria used to filter these funds.
1) Considered flexicap funds that generated consistent rolling returns in the last 3 to 5 years.
2) Funds that outperformed their peers in terms of annualized returns. However excluded funds which performed well in annualized returns, but failed in consistent rolling returns perspective.
3) MFs which have AUM of over Rs 500 Crores
4) Flexi-cap funds that have low expense ratios.
Best Flexi Cap Mutual Funds to invest in 2022
Here is the list of Top Flexi Cap Mutual Funds in India, which are consistent performers.
#1 – Parag Parikh Flexi Cap Fund
#2 – PGIM India Flexi Cap Fund
#3 – UTI Flexi Cap Fund
#4 – Canara Robeco Flexi Cap Fund
#5 – DSP Flexi Cap Fund
Top 5 Best Flexicap Funds for 2022 – Fund Performance and Metrics
#1 – Parag Parikh Flexi Cap Fund
Investment objective of the fund
The fund aims to achieve long-term capital appreciation by investing primarily in equity and equity related instruments.
Funds Performance and Risk Statistics
| Performance & Risk Metrics | Parag Parikh Flexi Cap Fund |
|---|---|
| Value Research Rating | 5 Star |
| 3 Years – SIP Returns | 32% |
| 5 Years – SIP Returns | 25% |
| 5 Years – Annualised Returns | 21% |
| AUM – Crores | 21,768 |
| Expense Ratio | 0.79% |
| Risk Grade | Low |
| Return Grade | High |
| Beta | 0.76 |
| Alpha | 10.90 |
This fund has a low beta of 0.76. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has a high alpha of 10.9. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
Currently it invests 95% in equity and balance holds in cash. Its majority of the portfolio is invested in stocks in the financial sector, services, industry, technology services, consumables and auto sector.
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 80% of the times
- 8% to 12% returns – 14% of the times
- < 8% returns – 6% of the times
- Negative returns – Zero times
From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:
- Over 12% returns – 88% of the times
- 8% to 12% returns – 12% of the times
- < 8% returns – Zero times
- Negative returns – Zero times
This fund invests in overseas stocks too. However recently indicated it would invest fresh flows only in investments in Indian stock markets due to overseas limit restrictions. This should go away in next few months.
This fund generated 20.4% annualized return since inception in 2013 (direct fund). Considering its outstanding performance in the category and low expense ratio, it is one of the Best Flexi Cap Mutual Funds to invest in 2022 India.
#2 – PGIM India Flexi Cap Fund
Investment objective of the fund
The MF scheme seeks to generate income & capital appreciation by predominantly investing in an actively managed diversified portfolio of equity & equity related instruments including derivatives.
Funds Performance and Risk Statistics
| Performance & Risk Metrics | PGIM India Flexi Cap Fund |
|---|---|
| Value Research Rating | 5 Star |
| 3 Years – SIP Returns | 35% |
| 5 Years – SIP Returns | 25% |
| 5 Years – Annualised Returns | 19% |
| AUM – Crores | 4,083 |
| Expense Ratio | 0.43% |
| Risk Grade | Avg |
| Return Grade | High |
| Beta | 0.99 |
| Alpha | 8.23 |
This fund has a low beta of 0.99. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has a high alpha of 8.23. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
Currently it invests 98% in equity and balance holds in cash. Its majority of the portfolio is invested in stocks of financial services, technology, capital goods, chemicals, materials and healthcare.
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 60% of the times
- 8% to 12% returns – 17% of the times
- < 8% returns – 19% of the times
- Negative returns – 4% of the times
From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:
- Over 12% returns – 72% of the times
- 8% to 12% returns – 18% of the times
- < 8% returns – 10% of the times
- Negative returns – 0.5% of the times
This fund generated 16% annualized return since inception in 2013 (direct fund). Considering its outstanding performance in the category and low expense ratio, it is one of the Best Flexi Cap Funds in India.
#3 – UTI Flexi Cap Fund
Investment objective of the fund
The MF seeks to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across the market capitalization spectrum.
Funds Performance and Risk Statistics
| Performance & Risk Metrics | UTI Flexi Cap Fund |
|---|---|
| Value Research Rating | 5 Star |
| 3 Years – SIP Returns | 26% |
| 5 Years – SIP Returns | 20% |
| 5 Years – Annualised Returns | 17% |
| AUM – Crores | 24,899 |
| Expense Ratio | 0.93% |
| Risk Grade | Below Avg |
| Return Grade | High |
| Beta | 0.95 |
| Alpha | 3.32 |
This fund has a low beta of 0.95. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has a high alpha of 3.32. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
Currently it invests 97% in equity and balance holds in cash. Its majority of the portfolio is invested in stocks in financial services, technology, healthcare, services, materials and automobiles.
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 64% of the times
- 8% to 12% returns – 17% of the times
- < 8% returns – 18% of the times
- Negative returns – 1% of the times
From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:
- Over 12% returns – 71% of the times
- 8% to 12% returns – 14% of the times
- < 8% returns – 15% of the times
- Negative returns – Zero times
This fund generated 16.4% annualized return since inception in 2013 (direct fund). Considering its outstanding performance compared to its peers, it can be considered as one of the Top Flexi Cap Mutual Funds in India.
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#4 – Canara Robeco Flexi Cap Fund
Investment objective of the fund
The scheme aims to generate capital appreciation by investing in equity and equity related securities. The scheme would follow bottom-up investment style by identifying companies with strong competitive position in good business and having quality management. Being an open-ended scheme, some portion of the portfolio may be invested in money market instruments so as to meet the normal repurchase requirements.
Funds Performance and Risk Statistics
| Performance & Risk Metrics | Canara Robeco Flexi Cap Fund |
|---|---|
| Value Research Rating | 5 Star |
| 3 Years – SIP Returns | 25% |
| 5 Years – SIP Returns | 20% |
| 5 Years – Annualised Returns | 17% |
| AUM – Crores | 7,256 |
| Expense Ratio | 0.57% |
| Risk Grade | Low |
| Return Grade | Above Average |
| Beta | 0.85 |
| Alpha | 3.68 |
This fund has a low beta of 0.85. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has a high alpha of 3.68. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
Currently it invests 94% in equity and balance holds in cash. Its majority of the portfolio is invested in stocks in financial services, technology, healthcare, energy, automobile and construction.
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 67% of the times
- 8% to 12% returns – 17% of the times
- < 8% returns – 16% of the times
- Negative returns – Zero times
From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:
- Over 12% returns – 71% of the times
- 8% to 12% returns – 16% of the times
- < 8% returns – 13% of the times
- Negative returns – Zero times
This fund generated 15.2% annualized return since inception in 2013 (direct fund). Considering its outstanding performance in the category and low expense ratio, it is one of the Best Flexi Cap Funds in India for 2022.
#5 – DSP Flexi Cap Fund
Investment objective of the fund
The mutual fund scheme seeks to generate long-term capital appreciation, from a portfolio which is substantially constituted of equity and equity related securities and may also invest a certain portion of its corpus in debt and money market securities, in order to meet liquidity requirements from time to time. In Picking out individual investment opportunities for the portfolio, the investment manager will seek both value & growth.
Funds Performance and Risk Statistics
| Performance & Risk Metrics | DSP Flexi Cap Fund |
|---|---|
| Value Research Rating | 4 Star |
| 3 Years – SIP Returns | 23% |
| 5 Years – SIP Returns | 18% |
| 5 Years – Annualised Returns | 15% |
| AUM – Crores | 7,661 |
| Expense Ratio | 0.81% |
| Risk Grade | Avg |
| Return Grade | Above Average |
| Beta | 0.95 |
| Alpha | 1.97 |
This fund has a beta of 0.95. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has a high alpha of 1.97. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
Currently it invests 98.8% in equity and balance holds in cash. Its majority of the portfolio is invested in stocks in the services industry, financial, technology, materials, automotive, healthcare and chemicals.
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 60% of the times
- 8% to 12% returns – 17% of the times
- < 8% returns – 22% of the times
- Negative returns – 1% of the times
From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:
- Over 12% returns – 69% of the times
- 8% to 12% returns – 17% of the times
- < 8% returns – 14% of the times
- Negative returns – Zero times
This fund generated 15.4% annualized return since inception in 2013 (direct fund). Considering its outstanding performance in the category and low expense ratio, it can be considered as one of the Best Flexi Cap Mutual Funds in 2022 in India.
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Flexicap Funds with annualized returns in last 1 to 5 years
Here is the annualized returns of these funds.
| Mutual Fund Name | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| Parag Parikh Flexi Cap Fund | 28% | 26% | 21% |
| PGIM India Flexi Cap Fund | 30% | 28% | 19% |
| UTI Flexi Cap Fund | 19% | 21% | 17% |
| Canara Robeco Flexi Cap Fund | 24% | 20% | 17% |
| DSP Flexi Cap Fund | 20% | 19% | 15% |
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Hi Suresh,
Which category of fund can be considered along with flexicap fund to build a long term portfolio for moderate investor, aggressive investor. Is single flexi cap fund portfolio is sufficient?
Hello Savaee
1) Flexicap – This category invest in largecap, midcap and smallcap. Since it has midcap and smallcap component, this is high risk. Only aggressive investors can invest in such funds
2) Moderate risk investors can invest in balanced mutual funds. Moderate to high risk investors can invest in largecap funds
3) Yes, one can invest in single flexicap category, however the discretion of midcap/smallcap component is left to fund manager. If you are willing to have higher / lower allocation to this segment based on your need or based on market cycles, you can stick to mutual funds from respective categories (largecap, midcap or smallcap)
Hi Suresh Sir,
Please review the portfolio of 7000 rs. SIP each in following funds for wealth creation purpose over a long period with aggressive approach
PGIM opportunities Mid Cap
Quant Active Multi Cap
Parag parikh flexi cap
Savee, These are consistent performing funds, you can continue to invest for medium to long term
Thanks for review. Please suggest suitable debt fund for 2-3 years of investment horizon.
In next 3 to 6 months RBI would increase repo rate and interest rates would increase. Debt funds (which invests in bonds) would see downfall in returns. I would suggest you to invest in ultra short term funds (like ICICI Pru ultra short term fund or HDFC ultra short term fund) which this process is completed. Post those rate hikes you can invest in medium term debt funds like HDFC Medium term fund etc.,
Hi Suresh Sir, Please review the following portfolio choosen for wealth creation purpose on long term basis with agressive investing strategy. Currently monthly SIP of 7000 rs.in each fund.
PGIM Opportunities Mid Cap Fund
Parag Parikh flexible cap fund
Quant Active Plan
Savee, These are consistent performing funds, you can continue to invest for medium to long term
Sir, thanks for the good info, please clarify why Quant Flexi cap fund is not included
Hello Satish, These funds filtered based on consistent rolling returns.
e.g. DSP Flexicap fund generated 3 year rolling returns of
negative returns for 2% of times and
Just check other funds which has outperformed this fund, hence it is not in our top list.
Sir thanks, but my question was about Quant flexi cap not DSP Flexi cap. I think Quant flexi cap is very aggressive and have delivered higher returns than the funds what you have listed, but I would like to know the downside of Quant Flexi cap fund.
Regards
Oops sorry. Quant Flexicap fund
3 years rolling returns\
28% of times negative returns
16% times 0% to 8% returns
5 years rolling returns
33% of times it generated< 12% returns Hence this is not in our top funds list
Hi Suresh Sir
For a period of 6 months to 2 years where we can invest apart from FDs to get reasonable returns with low risk to capital. Please suggest if any mutual funds available alternative to FDs. May be 1 or 2 funds sufficient.
Currently debt funds are generating low returns compared to FDs. I would advice you to invest in simple FDs only as of now.
Hi Suresh Sir
Please suggest in how many funds shall we invest through SIP for 25000 per month amount. I am aggressive risk taker investor and want to invest for medium and long term goals.
You can invest in 5 to 7 mutual funds across various categories
Hi Suresh Sir,
Please suggest me good 3-4 mutual funds to invest for longer horizon and high returns. I am ok with high risk funds. I would like to understand the best combination for investing across 3-4 funds.
You can invest in the following
1) Canara Robecco blue chip fund
2) Parag Parikh flexicap fund
3) Quant midcap fund
4) Quant smallcap fund
Remember 3 and 4 are high risk funds and can provide high returns too
Hello Sir
Big fan of yours. Need some guidance.
Currently, I started Monthly SIP in below mutual funds through my ICICI-Direct Account totaling Rs. 5000 per month.
(1) SBI SMALL CAP FUND REGULAR GROWTH— Rs. 2000/month
(2) UTI NIFTY NEXT 50 INDEX FUND REGULAR GROWTH PLAN— Rs. 1500/month
(3) UTI-NIFTY INDEX FUND – GROWTH PLAN— Rs. 1500/month
I can still invest additional 10,000 more per month. So, deciding to start a monthly SIP of Rs. 10,000 in your #1 suggested:
(4) Parag Parikh Flexi Cap Fund
I don’t have any immediate need of money, so, can remain invested through SIP for like 5-6 years or even more if performance remains good.
Please suggest if this diversification is good or not. Or should I remove or add any other funds.
Looking forward to your reply, sir.
Thank you again.
Saurabh
Good to hear about you. Invest in smallcap/midcap only if you can invest for 8-10 years and beyond. Otherwise stay away. You can go with index funds + parag parikh for 5-7 years.
Hi Sir
I am always like & being inspired by your articles and response.
This is my portfolio as follows… for long term investment plan
Please review and provide your inputs…
MIRAE ASSET EMERG. BLUECHIP FUND-DIRECT-(GROWTH) – Rs. 1000
SBI BANKING & FINAN. SERVICES -DIRECT PLAN (GROWTH) – Rs.1000
AXIS FOCUSED 25 FUND- DIRECT PLAN (GROWTH) – Rs.2000
ADITYA BIRLA SUNFILE DIGI. IND. FUND-DIRECT (GR.) – Rs. 2000
NIPPON INDIA PHARMA FUND- DIRECT-(GROWTH) – Rs. 1000
ICICI PRUDENTIAL TECHNOLOGY- DIRECT – (GROWTH) – Rs. 1000
UTI FLEXI CAP FUND- DIRECT-(GROWTH) – Rs. 1000
KOTAK BLUECHIP FUND-DIRECT-GROWTH– Rs. 1000
PARAG PARIKH LONG TERM EQUITY FUND- DIRECT (GR.) – Rs. 1000
MOTILAL OSWAL MULTICAP-35 FUND -DIRECT (GR.) – Rs. 1000
FRANKLIN INDIA FEEDER-US OPPOR. FUND – DIRECT (GR.) – Rs. 1000
INVESCO INDIA GROW. OPPORTUNITY. FUND- DIRECT (GR.) – Rs. 1000
SBI FOCUSED EQUITY FUND-DIRECT-(GROWTH) – Rs. 1000
L&T MIDCAP FUND-DIRECT-(GROWTH) – Rs. 1000
PGIM INDIA MIDCAP OPPOR. FUND-DIRECT (GR.) – Rs. 1000
TATA DIGITAL INDIA FUND- DIRECT-GROWTH– Rs. 1000
AXIS LONG TERM EQUITY FUND – GROWTH– Rs. 1000
ADITYA BIRLA SUNLIFE TAX RELIEF 96 FUND- GROWTH– Rs. 1000
DSP BLACKROCK N.R.N.E. Fund – Reg.- Growth – Rs. 4000
ICICI PRUD. BLUECHIP FUND-DIRECT PLAN (GR.) – Rs. 2000
AXIS BLUE CHIP FUND – DIRECT PLAN (GROWTH) – Rs. 5000
SBI BLUE CHIP FUND -DIRECT PLAN (GROWTH) – Rs. 5000
HDFC TOP 100 FUND – DIRECT PLAN (GROWTH) – Rs. 2000
CANARA ROBECO BLUECHIP-DIRECT PLAN (GR.) – Rs. 2000
Please Guide me any fund to be changed / remove/modify..
Regards
RKS
Oh my good. Not sure why are you investing in so many funds. You may only hold below funds and exit remaining. You can still fine tune by considering max 2 funds from each category i.e. Largecap, midcap, smallcap, flexicap and global category
MIRAE ASSET EMERG. BLUECHIP FUND-DIRECT-(GROWTH) – Rs. 1000
ICICI PRUDENTIAL TECHNOLOGY- DIRECT – (GROWTH) – Rs. 1000
UTI FLEXI CAP FUND- DIRECT-(GROWTH) – Rs. 1000
PARAG PARIKH LONG TERM EQUITY FUND- DIRECT (GR.) – Rs. 1000
PGIM INDIA MIDCAP OPPOR. FUND-DIRECT (GR.) – Rs. 1000
AXIS BLUE CHIP FUND – DIRECT PLAN (GROWTH) – Rs. 5000
SBI BLUE CHIP FUND -DIRECT PLAN (GROWTH) – Rs. 5000
HDFC TOP 100 FUND – DIRECT PLAN (GROWTH) – Rs. 2000
CANARA ROBECO BLUECHIP-DIRECT PLAN (GR.) – Rs. 2000
Thanks for your review… I will follow it..
Hi Suresh
Please suggest best mutual fund investment platform for direct investment.
Hello Savaisinh, You can opt for kuvera, Groww or ET money. All these offer free investments in direct mutual funds. I personally use Kuvera as it is very simple to use and simple dashboard that reflects profits / losses from mutual funds.