Flexi Cap funds offer 8.31% in first half of 2023; Parag Parikh Flexi Cap Fund offers 16%

The flexi cap category offered an average return of 8.31% in the first half of the year (January to June). During the first six months of 2023, the benchmarks for the category -- NIFTY 500 - TRI, and S&P BSE 500-TRI —offered 6.84%,and 6.78% respectively.

There were 33 schemes in the flexi cap category. All the schemes in the category were in green. Parag Parikh Flexi Cap Fund, the topper in the category, offered 16.38%, followed by JM Flexicap Fund (12.08%). Quant Flexi Cap Fund offered the lowest return of 3.24%.

Quarterly performance

During April-June quarter in 2023, all the schemes in the flexi cap category managed to offer double-digit returns, except for Shriram Flexi Cap Fund. The scheme offered single-digit returns. The category offered an average return of around 12.95%. During the same period, the benchmark indices, NIFTY 500 - TRI, and S&P BSE 500 - TRI, offered around 13.25%, and 13.18% respectively.

During the quarter that ended in June, ITI Flexi Cap Fund, the topper in the category, offered around 16.19% returns, followed by JM Flexicap Fund which offered 15.80%. Shriram Flexi Cap Fund offered the lowest return of around 9.04%. Out of 35 schemes, 34 schemes offered more than 10% returns in the quarter that ended in June.

During January-June 2023, out of 33 schemes, 25 schemes outperformed their respective benchmarks. During April-June, out of 35 schemes, 15 flexi cap schemes managed to beat their respective benchmarks. However, 13 schemes outperformed their respective benchmarks in both the horizons.

As per AMFI data, during January-May 2023 (last available data), the flexi cap category received a total inflow of Rs 4,097.39 crore. The asset under management for flexi cap category as on May 31,2023 was Rs 2.62 lakh crore, the highest among all equity categories..

Note, the above exercise is not a recommendation. The main purpose of this exercise is just to find out how flexi cap schemes performed in the first half of 2023. One should not make investment or redemption decisions based on the above exercise. One should always choose schemes based on risk appetite, investment horizon and goal.

We considered the regular and growth options. The returns for January to June 2023 were calculated from January 2,2023 to June 30,2023. The quarterly returns for the quarter that ended in June 2023 were calculated from April 3, 2023 to June 30, 2023.

Flexi cap schemes are typically recommended to moderate investors to create wealth over a long period of time. Ideally, one should invest in these schemes with an investment horizon of five to seven years. Flexi cap mutual funds offer the fund managers the freedom to invest across market capitalisations and sectors/themes. It means the fund managers can invest anywhere based on his outlook on the market.

If you are looking for recommendations, see: Best flexi cap mutual funds to invest in 2023