Many mutual fund investors, especially the new and inexperienced investors, are extremely concerned about the current volatility and uncertainties in the market. They don’t know whether to bet on the large caps or mid cap or some others. Also, they wonder how they will know when to switch from one category to another when the market mood changes. Are you in the same boat? Here is an easy way out. You can consider investing in .
Flexi cap mutual funds offer the fund managers the freedom to invest across market capitalisations and sectors/themes. It means the fund managers can invest anywhere based on his outlook on the market. Flexi cap schemes are typically recommended to moderate investors to create wealth over a long period of time. Ideally, one should invest in these schemes with an investment horizon of five to seven years.
As said earlier, these schemes have the freedom to invest anywhere depending on the view of the fund manager. For example, he or she might invest more in large cap stocks. Or in a bull market she might invest more in mid cap or small cap stocks. Investors should be extremely careful about this aspect. Investors should make sure that they are choosing a scheme that is in line with their risk appetite. For example, some flexi cap schemes may be more conservative than others. It is for you to identify the one that suits your temperament.
If you are planning to invest in flexi cap funds, here are our recommendations. We will closely watch the performance of these schemes and update you about it every month.
Aditya Birla Sun Life Flexi Cap Fund has been in the second quartile in the last two months. The scheme had been in the third quartile earlier. UTI Flexi Cap Fund has been in the fourth quartile for 24 months. Canara Robeco Flexi Cap Fund has been in the third quartile for 23 months. PGIM India Flexi Cap Fund has been in the fourth quartile for 15 months. has been in the first quartile in the last two months. has been in the first quartile in the last two months.
Best flexi cap schemes to invest in May 2025
- Parag Parikh Flexi Cap Fund
- HDFC Flexi Cap Fund (new addition)
- UTI Flexi Cap Fund
- PGIM India Flexi Cap Fund
- Aditya Birla Sun Life Flexi Cap Fund
- Flexi Cap Fund
- Canara Robeco Flexi Cap Fund
Here is our methodology:
has employed the following parameters for shortlisting the equity mutual fund schemes.
1. Mean rolling returns: Rolled daily for the last three years.
2. Consistency in the last three years:
Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.
i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast.
ii) When H is less than 0.5, the series is said to be mean reverting.
iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series
3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.
X = Returns below zero
Y = Sum of all squares of X
Z = Y/number of days taken for computing the ratio