5-star rated flexi cap funds: Monthly SIP of ₹10,000 turns over ₹10 lakh in 5 years

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Flexi cap funds are the most popular equity mutual funds when it comes to diversification and wealth creation because they are the only equity mutual funds that invest in large, mid, and small-cap companies. As a result, they are not limited to investing in companies across the market capitalization range, providing good diversification for investors in all market conditions. To invest in this category of equity mutual funds, investors must have an investment horizon of over five years and a moderate to high-risk profile. Flexi cap funds among equity funds had the highest positive inflow for the month of June 2022 at 2,511.74 Cr. According to AMFI data, flexi cap funds also achieved a net AUM of 2,10,682.47 Cr in the equity category for the month of June, ranking second after large-cap funds. Here are the two 5-star rated flexi cap funds by Value Research that have grown a long-term investment of 10,000 per month SIP to more than 10 lakh in only five years.

PGIM India Flexi Cap Fund – Direct Plan

The NIFTY 500 TRI serves as the benchmark index for the PGIM India Flexi Cap Fund, which was introduced on March 4th, 2015. Value Research has given the fund a 5-star rating. The fund’s AUM was 4241.13 Cr as of June 30, 2022, and as of July 29, 2022, its NAV was 27.45. Since its introduction, PGIM India Flexi Cap Fund Direct-Growth has generated returns of 14.60 per cent on an average annually and has given a 1-year return of 0.15 per cent. If a monthly SIP of 10,000 had been placed three years ago, it would have grown to around 5.22 lakh now thanks to the fund’s trailing returns of 26.65 per cent over the past three years. The fund has produced a trailing return of 15.76% over the past five years, meaning that a SIP of 10,000 established five years ago would have grown to around 10.07 Lakh at this time. 

Similar to that, the fund has achieved a return of 14.47 per cent over the past seven years, and if a SIP of 10,000 had been made then, it would currently be worth almost 16.30 lakh. The fund’s top 5 holdings are Reliance Industries Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., and Axis Bank Ltd. The fund’s asset allocation is split throughout the financial, capital goods, technology, automobile, and energy sectors. The fund has an expense ratio of 0.44 per cent and levies an exit load of 0.5 per cent for units redeemed within 90 days of allocation. The fund invests 95% of its assets in domestic equities, of which 46.07 % are large-cap companies, 10.32 % are mid-cap companies, and 13.21 % are small-cap companies.

Parag Parikh Flexi Cap Fund – Direct Plan

The fund was introduced on May 28, 2013, and it uses the NIFTY 500 TRI as its benchmark index. As of 30 June 2022, Parag Parikh Flexi Cap Fund Direct-Growth has assets under management (AUM) at 22,324 Crores, and the fund holds a 5-star rating from Value Research. The fund’s NAV as of July 29, 2022, is 49.98. Since its introduction, Parag Parikh Flexi Cap Fund Direct-Growth has generated returns of an average of 19.17 per cent per year and 3.16 per cent over the past year. 

The fund has produced a trailing return of 25.185 during the past three years, translating a SIP of 10,000 into almost 5.10 lakh. A monthly SIP of 10,000 that was begun five years ago would now have been turned to approximately 10.04 lakh thanks to the fund’s 18.20 per cent return over the previous five years. The fund has produced a return of 16.46 per cent over the past seven years, which indicates that a monthly interest SIP of 10,000 made seven years ago would have grown to around 16.66 lakh now. 

The fund has an expense ratio of 0.79% lower than the other funds in the same category and the fund has a sharpe ratio of 1.03 compared to 0.46 of the category average, resulting in better risk-adjusted returns generated by the fund in the category. The fund has its asset allocation diversified across Financial, Services, Technology, Consumer Staples, Automobile sectors and the fund’s top 5 holdings are in ITC Ltd., Bajaj Holdings & Investment Ltd., Housing Development Finance Corporation. Ltd., Alphabet Inc Class A, Microsoft Corporation (US). The fund invests 70.85% of its assets in domestic equities, of which 57.52% are large-cap companies, 2.75 % are mid-cap companies, and 9.71 % are small-cap companies. The fund’s overall stock holding is 93.51 per cent, which includes foreign equity holdings of 22.66 per cent.

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