5 flexi cap mutual funds which outperformed their benchmarks in 5 years

Apr 27, 2025, 10:13:23 AM IST

A risk-adjusted parameter measuring the performance of equity mutual funds shows that the majority of these schemes are struggling to beat their benchmarks, as reported by ET Bureau.

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According to an ET study of the Information Ratio, which evaluates the skill of a money manager to consistently generate returns above a benchmark, of flexi-cap, large-cap, mid-cap and small-cap product categories, 14-21% of the schemes have outperformed the benchmark in the past five years.

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A higher information ratio, typically above 0.5, suggests a fund manager is consistently generating returns above the benchmark. A negative information ratio, shows that the fund has failed to beat its benchmark for the risk it has taken, meaning investors would be better off with passive funds.

IANS

The fund delivered a return of 35.3% in the last five years and had an information ratio of 0.7. The daily AUM was reported as Rs 6,976 crore as on April 22, 2025.

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The fund delivered a return of 31.3% in the last five years and had an information ratio of 0.7. The daily AUM was reported as Rs 73,355 crore as on April 22, 2025.

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The fund delivered a return of 28.7% in the last five years and had an information ratio of 0.5. The daily AUM was reported as Rs 18,083 crore as on April 22, 2025.

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Fund houses have been directed by Sebi to disclose information ratio from April 1.

Reuters

"Investors shouldn't be satisfied with just the absolute returns of their schemes, especially in a market that has largely moved in one direction over the past five years," says Niranjan Avasthi, senior vice-president, Edelweiss Mutual Fund. "What matters more is how those returns compare to the benchmark, and whether they justify the level of risk being taken."

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