Comparing flexi cap funds side-by-side reveals that different funds excel over different time frames and appeal to different risk appetites. While recent high-flyers like Quant Flexi Cap Fund offer explosive short-term growth, funds like Parag Parikh Flexi Cap Fund are often cited for more consistent long-term performance and lower risk due to their international equity exposure.
The best flexi cap fund for you will depend on your specific investment goals, risk tolerance, and investment horizon. The tables below compare several top-performing direct-growth flexi cap funds.
Comparison of key flexi cap funds
Metric | Parag Parikh Flexi Cap Fund | HDFC Flexi Cap Fund | Quant Flexi Cap Fund | Motilal Oswal Flexi Cap Fund | JM Flexicap Fund |
|---|---|---|---|---|---|
AUM (₹ Cr.) | 1,13,281 | 80,642 | 7,011 | 13,727 | 5,957 |
Risk | Very High | Very High | Very High | Very High | Very High |
3-Year Return (%) | 21.82 | 22.87 | 16.79 | 23.42 | 23.11 |
5-Year Return (%) | 23.51 | 28.77 | 27.87 | 20.83 | 26.48 |
10-Year Return (%) | 18.59 | 16.53 | 17.97 | 14.96 | 17.09 (SIP) |
Investment Style | Value-oriented, with up to 35% in international stocks | Stable, long-term approach; strong short-term performance recently | High-volatility, data-driven momentum strategy | Buy-and-hold strategy focused on high-quality businesses | Growth-oriented with a tactical approach across market caps |
Note: Return data can vary slightly across sources and specific dates. These figures provide a general guide based on recent research from the listed sources.
Analysis of the top contenders
- Parag Parikh Flexi Cap Fund: Known for its consistent long-term performance and lower volatility compared to peers, partly due to its exposure to international equities. It has a unique value-oriented approach and is often recommended for long-term investors.
- Quant Flexi Cap Fund: This fund is characterized by high-risk, high-return potential. While it can deliver explosive returns in strong markets, its performance can suffer significantly more than peers during market corrections. It uses a data-driven investment model and is suitable for aggressive investors.
- HDFC Flexi Cap Fund: A strong and established fund that has delivered impressive returns, especially over the last 5 years. It is well-managed and has a long history, making it a reliable option for investors seeking a balanced strategy.
- Motilal Oswal Flexi Cap Fund: Favored for its focused investment strategy and emphasis on a buy-and-hold approach for quality businesses. The fund has delivered competitive returns over the medium to long term.
- JM Flexicap Fund: This fund has shown strong 3- and 5-year performance, with a relatively high growth rate. It is suitable for investors comfortable with a moderately high-risk approach.
How to choose the right fund
To select the best fund for your portfolio, consider these factors:
- Risk Profile: Your risk tolerance is crucial. For a more balanced, less volatile experience, Parag Parikh Flexi Cap Fund is a solid choice. If you can handle greater market swings for potentially higher returns, Quant Flexi Cap Fund might be more suitable.
- Investment Horizon: Assess if your goal is long-term wealth creation or quicker gains. Funds with higher consistency and lower volatility like Parag Parikh and HDFC might be better for long-term growth, while aggressive funds like Quant can perform well in shorter bursts.
- Performance Metrics: Look beyond recent returns. Use risk-adjusted return measures like Alpha, Beta, and Sharpe Ratio, along with consistency of performance, to evaluate a fund’s quality. Consider a fund’s performance over various market cycles, both bull and bear.
- Fund Management: Research the fund house and the fund manager’s track record. A seasoned manager and a robust research process can add confidence in a fund’s ability to navigate market conditions effectively.
- Expense Ratio: A lower expense ratio can lead to higher net returns over the long term. Compare the expense ratios of the direct plans of the funds you are considering.