MF Tracker: This flexicap fund turns Rs 10,000 SIP to Rs 1.35 crore in over 2 decades

HSBC Flexi Cap Fund which completed 22 years last month turned Rs 10,000 monthly SIP to Rs 1.35 crore in more than two decades, an analysis by ETMutualFunds showed.

Launched on February 24, 2004, this flexi cap fund is given four star ratings by Value Research and three star rating by Morningstar.

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How your SIPs and lumpsum investments performed

If an investor invested in this fund 10 years ago through SIP, the value of this Rs 10,000 monthly investment would have been Rs 23.25 lakh with an XIRR of 12.78%. If the same SIP investment was made five years ago, the value would have been Rs 7.91 lakh with an XIRR of 11.18%. And lastly, if an investor made SIP three years ago, the value of investment would have been Rs 3.97 lakh with an XIRR of 6.66%.

A lumpsum investment of Rs 1 lakh in this fund at the time of its inception would have been Rs 20.54 lakh now with a CAGR of 14.67%. If the same investment was made five and 10 years ago, the value of the investment would have been Rs 1.92 lakh (13.98%) and Rs 3.47 lakh (13.26%) respectively.

If the investor made lumpsum investment in this fund three years ago, the value of that investment would have been Rs 1.63 lakh with a CAGR of 17.80%.

Performance scorecard

In the last 10 calendar years, the fund has offered negative returns in 2018 and 2022. In 2018, the fund lost 10.60%. In 2022, the fund lost 4.62%. In the last 10 calendar years, the fund has delivered the highest return in 2017 of around 40.27%.

This flexi cap fund lost the most in 2018 among the flexi cap funds present in the said calendar year. Except for this, the fund has not had the highest or lowest return in any other calendar year.

On the basis of trailing returns, the fund has outperformed its category average and benchmark in the last three months, one year, three years, and five years.

Despite being down 5.66% in the last three months, the fund has managed to outperform its benchmark and category average. The benchmark (Nifty 500 - TRI) lost 6.58% and the category average was a negative of 6.50% in the last three months.

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In the last one year, the fund gained 8.17% compared to 7.10% by benchmark and 5.61% as the category average. In the last three years, the fund posted a return of 17.76% compared to 16.05% by the benchmark and 15.50% as the category average. The fund posted a return of 14.23% in the last five years against a return of 13.61% by the benchmark and 13.07% as the category average.

In the last 10 years, the fund delivered a return of 13.26% against 14.48% by the benchmark and 13.98% as the category average.

In the last six months, the fund lost 8.16% against a loss of 6.57% by the benchmark and 7.89% as the category average. Since its inception, the fund has delivered a CAGR of 14.67%.

How an expert analyse this fund

Nikunj Saraf, CEO at Choice Wealth shared with ETMutualFunds that since its launch, HSBC Flexi Cap has been a wealth creator, turning a Rs 10,000 monthly SIP into Rs 1.33 crore over 22 years at 15.14% XIRR, beating Nifty 500 TRI’s 14.97%.

Saraf further said that this shines through consistent outperformance: 17% over three years, 13-14% over five, thanks to a nimble strategy blending large-cap stability (HDFC Bank, ICICI, Reliance top holdings) with mid/small-cap growth, focusing on quality businesses, earnings momentum, strong governance, and ESG integration amid market cycles.

Consistency score

According to a report by Share.market, HSBC Flexi Cap Fund had a performance consistency score of 62% in the last five years. The risk compared to its peers has been within acceptable range.

In the investment style of the portfolio, the momentum based is high, value based is medium, and quality based is low. In the last five years, the fund gave 17.02% CAGR and had an AUM of Rs 5,227 crore.

Saraf said that long-term holders (7+ years) should stick with it—its track record rewards patience despite recent market dips mirroring broader corrections and keep SIPs running, but rebalance if overweight; it’s ideal for diversified equity exposure without chasing highs.

Portfolio allocation

Being a flexi cap fund, the fund holds 54.69% in large caps, 20.81% in mid caps, 4.35% in others, and 20.14% in small caps as on February 2026. On a broader term, the fund holds 98.03% in equity and 1.99% in others.

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The PE and PBV ratio of the large cap fund were recorded at 40.26 times and 7.30 times respectively whereas the dividend yield ratio was recorded at 1.33 times as of February 2026.

ETMutualFunds analysed the other key ratios of the fund in a three year period. Based on the last three years, the scheme has offered a Treynor ratio of 1.14 and an alpha of 0.05. The sortino ratio of the scheme was recorded at 0.55. The return due to net selectivity was recorded at 0.00 and return due to improper diversification was recorded at 0.05 in the last three years.

Time to pick flexi cap funds?

The expert firmly said that yes, dive into flexi caps—they capture India’s growth across market caps when valuations vary, especially with mid/small recovery ahead. Choose SIP for rupee-cost averaging in volatile times like now; lumpsum fits only high-conviction surplus cash, not timing guesses.

Flexi cap basket

Apart from HSBC Flexi Cap Fund, 18 other funds have completed 10 years of existence in the market. Quant Flexi Cap Fund gave the highest return of 19.03% in the last 10 years, followed by Parag Parikh Flexi Cap Fund which posted a return of 17.41%.

Taurus Flexi Cap Fund delivered the lowest return in the last 10 years of around 10.09%, ACE MF data showed.

Saraf said that bright for 2026, fueled by earnings revival, capex upcycle, and domestic flows—the inherent flexibility of leverage across large, mid & small is a blessing here for investors , though global headwinds may spark bouts of volatility.

One should always invest based on their risk appetite, investment horizon, and goals.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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