5 flexi-cap mutual funds that have given more than 40% return in period of 1 year

Mutual fund investment diversification is a strategy that involves spreading one's investment across different types of mutual funds. In the realm of mutual fund investments, diversification entails allocating funds across various asset classes, industries, and geographic locations. This approach allows investors to mitigate risks associated with any specific asset or market. In essence, diversification embodies the well-known adage 'Do not place all your eggs in one basket'.

Flexi-cap mutual funds, which are considered to be an excellent tool for diversification, are schemes that allocate investments across small-cap, mid-cap, and large-cap stocks. These funds are required to invest a minimum of 65 percent in equity and equity-related instruments. In line with a Securities and Exchange Board of India (Sebi) circular issued on November 6, 2020, flexi-cap mutual funds were introduced as a new category within the equity schemes.

Here are 5 flexi cap MF schemes that have given 30% in 3 years

Bank of India Flexi Cap Fund - Regular Plan:

The Bank of India Flexi Cap Fund - Regular Plan is a mutual fund with net assets totaling Rs 1,700.33 crore. The fund has a strong performance track record over various time periods. It has 96.11% of its investments in domestic equities, with allocations of 30.7% in Large Cap stocks, 19.51% in Mid Cap stocks, and 20.89% in Small Cap stocks. Over the last 1-year period, the fund has yielded returns of 58.32%. Since its launch, it has provided an average annual return of 38.14%. The fund has a track record of doubling the invested amount every 2 years. Its top 5 holdings include HDFC Bank Ltd., State Bank of India, Vedanta Ltd., Rail Vikas Nigam Ltd., and Hindustan Aeronautics Ltd.

ICICI Prudential Retirement Fund - Pure Equity Plan:

ICICI Prudential's Pure Equity Plan has assets valued at Rs 944.04 crore. The fund primarily focuses on domestic equities, with a notable 97.04% investment in this sector. Within the domestic equities category, the fund allocates 48.38% to Large Cap stocks, 22.45% to Mid Cap stocks, and 15.62% to Small Cap stocks. In terms of performance, the fund has demonstrated impressive results, achieving a return of 47.69% in the last year and delivering an average annual return of 24.45% since its inception. One of the key highlights of this fund is its ability to double the invested amount every 3 years. Additionally, the fund's top 5 holdings include Bharti Airtel Ltd., Ambuja Cements Ltd., Ultratech Cement Ltd., DLF Ltd., and Interglobe Aviation Ltd.

HDFC Flexi Cap Fund:

HDFC Flexi Cap Fund is ranked among the largest funds in terms of assets, currently overseeing a substantial Rs 61,571.57 crore. This fund has a strong focus on domestic equities, with 87.81% of its investments allocated to this sector. Within the domestic equities, it holds 60.68% in Large Cap stocks, 5.77% in Mid Cap stocks, and 4.19% in Small Cap stocks. The HDFC Flexi Cap Fund, specifically the Direct Plan-Growth option, has showcased impressive returns in the past year, standing at 41.94%. Since its launch, the fund has maintained an average annual return rate of 17.97%. The current expense ratio for this fund is set at 1.45%. Its top 5 holdings include ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., Cipla Ltd., and HCL Technologies Ltd.

HDFC Focused 30 Fund:

The HDFC Focused 30 Fund, one of the renowned funds in the market, has garnered assets totaling an impressive Rs 13,794.80 crores. Its returns are notably robust with a 3-year return of 28.80% and a 1-year return of 41.96%. The fund maintains a competitive expense ratio of 1.68%, making it an attractive investment option for investors. In terms of its portfolio composition, the fund features a substantial 85.64% investment in domestic equities, with diversification across different market capitalizations. Notably, it has 52.72% in Large Cap stocks, 6.62% in Mid Cap stocks, and 5.07% in small caps.

Furthermore, the HDFC Focused 30 Fund Direct Plan-Growth has demonstrated strong performance with an impressive 1-year return of 42.57%. Since its inception, it has delivered solid average annual returns of 16.65%, showcasing its consistency and reliability as an investment vehicle. The fund's top 5 holdings include prominent companies like ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., HCL Technologies Ltd., and SBI Life Insurance Company Ltd., reflecting a well-rounded and diverse portfolio.

JM Flexicap Fund

JM Flexicap Fund distinguishes itself with an impressive 3-year return of 31.28% while managing Rs 3,855.23 crores. The fund has 97.99% investment in domestic equities of which 32.44% is in Large Cap stocks, 15.14% is in Mid Cap stocks, 28.1% in Small Cap stocks. JM Flexicap Fund Direct Plan-Growth has shown impressive performance with returns of 59.90% in the last 1 year. Since its launch, the fund has maintained an average annual return of 20.34%. Furthermore, it has a track record of doubling the invested amount every 2 years.

The fund primarily invests in sectors such as Financial, Capital Goods, Services, Healthcare, and Materials. It maintains a strategic allocation with less exposure in Financial and Capital Goods sectors compared to its counterparts in the same category.

The top 5 holdings of the JM Flexicap Fund Direct Plan-Growth include REC Ltd., HDFC Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., and ICICI Bank Ltd. This diversified portfolio reflects the fund's investment strategy and provides stability while aiming for growth.