After commencing a discussion on Flexi Cap Funds in the last column, let us now turn the spotlight on some of the larger funds from this category and how they have performed over time frames of 6 months, 1 year, 3 years and 5 years. These include HDFC Flexi Cap Fund, Parag Parikh Flexi Cap Fund, Kotak Flexi Cap Fund and SBI Flexi Cap Fund.
HDFC Flexi Cap Fund has an AUM of Rs. 66,124 crore. It holds 88% in Equity, 4% in Debt, REITs & InvITs and has a Cash Holding of 8%. Its primary portfolio holdings are in the Banks, Automobiles & Pharmaceuticals & Biotechnology industries. This fund has delivered CAGR returns of 34.94% over 5-years, 22.87% over 3-years and 16.48% over a 1-year time period. Over the last 6 months when the market has been on a downtrend, this fund has generated returns of (-5.38)%.
Parag Parikh Flexi Cap Fund has an AUM of Rs. 88,004 crore. It holds 66% in Equity, 13% in Overseas Securities and 21% in Debt. Its primary portfolio holdings are in the Banks, Computer Software and Finance industries. This fund has delivered CAGR returns of 29.99% over 5-years, 17.59% over 3-years and 14.46% over a 1-year time period. Over the last 6 months when the market has been on a downtrend, this fund has generated returns of (-3.56)%.
Kotak Flexi Cap Fund has an AUM of Rs. 45,433 crore. It holds 97% in Equity and has a Cash Holding of 3%. Its primary portfolio holdings are in the Banks, IT–Software and Chemicals and Petrochemicals industries. This fund has delivered CAGR returns of 25.82% over 5-years, 15.04% over 3-years and 10.10% over a 1-year time period. Over the last 6 months when the market has been on a downtrend, this fund has generated returns of (-9.10)%.
SBI Flexi Cap Fund has an AUM of Rs. 20,034 crore. It holds 86% in Equity, 6% in Overseas Securities and 8% in Debt & Cash. Its primary portfolio holdings are in the Financial Services, Information Technology and Automobile & Auto Components industries. This fund has delivered CAGR returns of 21.34% over 5-years, 10.64% over 3-years and 6.57% over a 1-year time period. Over the last 6 months when the market has been on a downtrend, this fund has generated returns of (-11.60)%.
These four funds put under the spotlight above 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.
It would thus be prudent for investors to seek professional advice before making any investment in these funds. That might help to select the right funds that fit into one’s portfolio and optimize returns.
(Ashok Kumar heads LKW India. The views expressed here are his own)
