Top Flexi Cap and Multi Cap Mutual Funds with Over 20% Returns in the Last 5 Years
When you’re thinking about where to invest your money, it’s natural to look at how well a mutual fund has done in the past. While many factors can influence your decision, the returns a fund has delivered over time often play a big role. Let’s know some of the best-performing flexi-cap and multi-cap mutual funds that have given over 20% annualized returns in the last five years.
Flexi Cap Mutual Funds
Flexi-cap mutual funds stand out because of their flexible investment strategy. These funds are required to invest at least 65% of their money in stocks or similar investments. What makes them particularly appealing is the ability to invest across different types of stocks. These include big medium-sized, or small companies. This adaptable approach lets fund managers move investments based on market trends. This plan can result in higher profits. These funds are open-ended. This means you can purchase or sell your shares at any time. It gives you the choice to shift your money as you need. As of June 30, 2024, India has 39 flexi cap funds. They oversee a total of Rs.4.01 lakh crore according to the Association of Mutual Funds in India (AMFI).
This large pool of funds highlights the popularity and trust investors place in flexi cap schemes.
Multi Cap Mutual Funds
Multi-cap mutual funds have a lot in common with flexi-cap funds. They share a diversified approach to investing. However, they have a specific requirement: they must invest at least 75% of their assets in stocks and related instruments. This ensures that most of the fund’s money is always working in the stock market. The aim is to provide strong returns over the long term.
As of June 30, 2024, the Indian market had 25 multi-cap mutual funds. They manage a total of Rs.1.54 lakh crore, according to AMFI data. Notably, six of these funds have delivered more than 20% annualized returns over the past five years.
Top Performing Multi Cap Mutual Fund
One of the biggest advantages of both flexi-cap and multi-cap funds is a diversified investment approach. This helps reduce risk. They offer potentially higher returns. This diversification is especially valuable during different market cycles. Some stocks may perform better than others.
The strong past returns of flexi-cap and multi-cap mutual funds are certainly impressive. Keep in mind that how investments did before doesn’t mean they’ll do the same later. Markets keep changing. Returns in the future might shift. Think about what you want to achieve with your money. Figure out how much risk you’re okay with. Talk to a money expert before you decide where to put your cash.
