When selecting mutual fund schemes, investors often scrutinize past performance to gauge potential returns. While historical returns are just one aspect of a fund’s evaluation, they play a crucial role in investment decisions. Here, we highlight the top-performing flexi cap and multi cap mutual funds that have delivered impressive annualised returns over the past five years.
Flexi Cap Mutual Funds
Flexi cap mutual funds are equity schemes that invest a minimum of 65% of their assets in equity and equity-related instruments. These open-ended dynamic funds have the flexibility to invest across large cap, mid cap, and small cap stocks, following guidelines set by the Securities and Exchange Board of India (SEBI) as of November 6, 2020. According to the Association of Mutual Funds in India (AMFI) data as of June 30, 2024, there are 39 flexi cap schemes with a combined total assets under management (AUM) of ₹4.01 lakh crore.
Among these, six flexi cap mutual funds have delivered over 22% annualised returns over the past five years. These schemes stand out for their consistent performance in a dynamic market environment.
Multi Cap Mutual Funds
Multi cap mutual funds are designed to invest across the entire market capitalisation spectrum, including large cap, mid cap, and small cap stocks. As per SEBI’s October 2017 guidelines, these funds must allocate at least 75% of their assets to equity and equity-related instruments. As of June 30, 2024, there are 25 multi cap schemes with a total AUM of ₹1.54 lakh crore.
In this category, six multi cap funds have achieved annualised returns exceeding 20% over the last five years, showcasing their ability to deliver robust performance across various market conditions.
Key Considerations
While past performance is a valuable metric, it is important to remember that it does not guarantee future results. Investors should consider a range of factors, including market conditions, fund management strategies, and their own investment goals before making decisions.
These top-performing flexi cap and multi cap mutual funds offer a strong track record, but potential investors should conduct thorough research and consider consulting with a financial advisor to ensure alignment with their investment objectives.
Related topics: