Having initiated a discussion on how the sub-category of Flexi-Cap Funds came into being well after the initial categorisation 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 time frames of 3 and 5 years.
These Flexi-Cap funds that we have randomly selected to place under the spotlight include Parag Parikh Flexi Cap Fund, Kotak Flexi Cap Fund, Franklin India Flexi Cap Fund, DSP Flexi Cap Fund and SBI Flexi Cap Fund.
Parag Parikh Flexi Cap Fund has an AUM of R71,700 crore. It holds 71% in Equity, 14%Overseas Securities, 4 % in Debt instruments and has a Cash Holding of 11%.
Its primary portfolio holdings are in the Banks, Computer Software and Power industries. This fund has delivered CAGR returns of 19.61% over 3 years and 25.2% over 5 years.
Kotak Flexi Cap Fund has an AUM of R51,094 crore. It holds 99.4% in Equity, 0.1% in Debt instruments and has a Cash Holding of 0.5 %. Its primary portfolio holdings are in the Banks, Cement and Cement Products and IT-Software industries.
This fund has delivered CAGR returns of 18.85% over 3 years and 18.45% over 5 years.
Franklin India Flexi Cap Fund has an AUM of R16,677 core. It holds 93.5% in Equity and has a Cash Holding of 6.5%. Its primary portfolio holdings are in the Banks, IT-Software and Telecom Services industries.
This fund has delivered CAGR returns of 23.08% over 3 years and 22.45% over 5 years. DSP Flexi Cap Fund has an AUM of R11,391 crore. It holds 98.5% in Equity and the remainder 1.5% in Debt instruments and Cash Holding. Its primary portfolio holdings are in the Banks, Finance and Auto Components industries. This fund has delivered CAGR returns of 17.16% over 3 years and 20.94% over 5 years.
SBI Flexi Cap Fund has an AUM of R21,989 crore. It holds 90% in Equity, 5%in Overseas Securities and has a Cash Holding of 5%. Its primary portfolio holdings are in the Financial Services, Information Technology and Oil, Gas & Consumable Fuels industries. This fund has delivered CAGR returns of 15.51% over 3 years and 17.25% over 5 years.
It is noteworthy that the above funds not only have varying AUM sizes, but also have a diverse allocation mix across market capitalisations and accord higher weightages to different sectors, thus varying their risk-reward ratios.
Given that comparability of performance might require some additional sifting and calibration, it would be prudent for investors to seek professional advice before making an investment in these funds.
That might help to select the right funds in one’s portfolio and optimize its returns.
Ashok Kumar
Head of LKW-India.
He can be reached at ceolotus@hotmail.com
(Views expressed here are personal)