In the previous column, we had initiated a discussion on how the sub-category of Flexi-Cap Funds came into being well after the intital categorization of Equity Mutual Funds by SEBI, their characteristics and points of differentiation with Multi-cap Funds. In this column, we shall cast a glance at some of the funds on offer in this category for investors and how they have performed over different time frames up to five years.
These Flexi-Cap funds that we have randomly selected to place under the spotlight include Edelweiss Flexi Cap Fund, L&T Flexi Cap Fund, Kotak Flexi Cap Fund, DSP Flexi-Cap Fund and SBI Flexi Cap Fund.
Edelweiss Flexi Cap Fund has an AUM of Rs 926 Crore and its current Asset allocation mix is nearly 72% in Large Cap, 22% in Mid Cap and 6% in Small Cap. Its top equity holdings are in the Financial Services, IT and Consumer Goods Sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 8.35%, 13.66% and 10.61% respectively.
L&T Flexi Cap Fund has an AUM of Rs 2,797 Crore and its current Asset allocation mix is nearly 67% in Large Cap, 21% in Mid Cap and 12% in Small Cap. Its top equity holdings are in the Banking, Software and Finance Sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 4.94%, 11.19% and 7.84% respectively.
Kotak Flexi Cap Fund has an AUM of `36,463 Crore and its current Asset allocation mix is nearly 78% in Large Cap, 20% in Mid Cap and 2% in Small Cap. Its top equity holdings are in the Financial, IT and Oil & Gas Sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 5.56%, 11.69% and 9.57% respectively.
DSP Flexi Cap Fund has an AUM of `7,538 Crore and its current Asset allocation mix is nearly 60% in Large Cap, 24% in Mid Cap and 12% in Small Cap. Its top equity holdings are in the Banking, Software and Finance Sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 1.62%, 14.84% and 10.46% respectively.
SBI Flexi Cap Fund has an AUM of `15,449 Crore and its current Asset allocation mix is nearly 63% in Large Cap, 14% in Mid Cap and 13% in Small Cap and others. Its top equity holdings are in the Financial Services, IT and Consumer Goods Sectors.
The performances of this fund over a 1-year, 3-year and 5-year time period are 8.85%, 14.01% and 10.69% respectively. What is interesting to note is that the above funds not only have varying AUM sizes but also have a diverse allocation mix across market capitalizations and accord higher weightages to different sectors, thus varying their risk-reward ratios.
Investors would do well to study these patterns well or seek professional advise before making an investment.
Ashok Kumar
Head of LKW-India. He can be reached at ceolotus@hotmail.com