Recently we reviewed a large cap mutual fund that generated highest SIP returns in 5 years. As indicated in our earlier article, there were many queries asking to write about highest SIP return funds from each category of mutual funds. Which is the Top Flexicap Fund generated highest SIP returns in last 5 years? If you think it could be Parag Parikh Flexicap fund or UTI Flexicap fund, then you are mistaken.
How we filtered this mutual fund scheme?
We considered all flexicap mutual fund schemes.
Filtered fund that generated highest SIP returns in the last 5 years among direct mutual funds.
Quant Flexicap Fund stands out 1st in the list after applying these filters.
This fund generated highest SIP returns of 28% in the last 5 years while next 5 Flexicap funds generated 19% to 21% SIP returns during a similar period.
About Quant Flexicap Fund
The investment objective of the mutual fund is to seek to generate consistent to generate consistent returns by investing in a portfolio of Large Cap, Mid Cap and Small Cap companies. The AMC will have the discretion to completely or partially invest in any of the type of securities stated above with a view to maximize the returns or on defensive considerations.
One can invest a minimum of Rs 5,000 in lump sum or Rs 1,000 per month through SIP for 6 months.
There is no entry load and exit load.
This fund allocates 65% to 100% in equity and related instruments, up to 35% in debt and money market instruments, Upto 35% in foreign securities and up to 10% in REITs and InvITs. Under equity portion it can invest in large cap stocks, mid cap stocks or small cap stocks without any restrictions.
Since this is a flexicap fund, this is categorized as very high risk fund.
Current AUM is Rs 640 Crores.
Its current expense ratio is 0.58%.
Where does this mutual fund invest now?
While this fund invests majorly in large cap/mid cap/small cap companies, here are the portfolio details.
Currently it has invested 99.6% in equity and balance holds in cash.
This fund majorly invests in sectors of consumer staples, services, financial, materials, energy, communication and construction.
Its concentration is on 41 companies now. Its top holdings are ITC, Ambuja Cements, Adani Ports, SBI, NTPC, The Indian Hotels, L&T etc.,
How is the performance of the fund?
Let us check the performance of SIP, lump sum and rolling returns.
A) SIP Performance
This fund generated 28% SIP returns in last 5 years and 39% SIP returns in last 3 years.
This fund is able to generate 8% to 9% higher SIP returns in last 5 years compared to other flexicap mutual fund schemes. Even in the last 3 years, this fund generated 9% to 14% higher SIP returns compared to its peers.
Investment of Rs 10,000 SIP per month, the investment value would have been Rs 6 Lacs (10,000 x 60 months) and the investment value would have now grown to Rs 12.2 Lacs in 5 years.
B) Annualised Performance
- 7 year annualized returns – 20%
- 5 year annualized returns – 19% (investment of 1 lac would have turned 2.5 lacs)
- 3 year annualized returns – 37%
- 1 year returns – 7%
C) Rolling Returns
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 59% of the times
- 1% to 12% returns – 31% of the times
- Negative returns – 10% of the times
From a 5 year rolling return perspective, this fund generated:
- Over 12% returns – 67% of the times
- 1% to 12% returns – 33% of the times
- Negative returns – Zero times
This fund generated 19% annualised returns since inception of the mutual fund scheme.
Who can invest in this Flexicap fund?
Earlier we analysed 10 mutual fund schemes that generated highest SIP returns in 10 years, which include various market cap categories. Recent analysis about a large cap mutual fund that generated high SIP returns in the last 5 years is also from the Quant mutual fund. Coincidentally, even in flexicap category too, the Quant mutual fund scheme came top fund that generated highest SIP returns in last 5 years.
Mutual funds can perform better in medium to long term. This mutual fund scheme is from flexicap category and is very high risk as it invests in midcap and smallcap stocks beyond largecap segment and foreign securities. Flexicap segment can outperform in medium to long term.
If you are a high risk investor and want to invest for a medium to long term, you can invest in such funds. Alternatively, you can invest in a diversified portfolio of mutual funds consisting of large cap, Midcap and smallcap funds so that underperformance of one segment should not affect your portfolio.
Have you liked our tips and analysis? Then share it on your Facebook, Twitter, Telegram and other social media, which might be useful to your friends too.
- 10.5% Muthoot Mercantile NCD December 2023 – Issue Details and Review - November 26, 2023
- 8.6% Cholamandalam Investment and Finance NCD Nov-2023 – Issue Details and Review - November 25, 2023
- 12.5% ICL Fincorp NCD November 2023 – Issue details and Review - November 24, 2023