NFO Pick – (Unifi Flexi Cap Fund)

26 May 2025 , 09:41 AM

QUICK THOUGHTS ON UNIFI FLEXI CAP FUND NFO

The Unifi Flexi Cap Fund NFO is an equity fund that will adopt a dynamic approach to investing in equities; with a flexible mix of large caps, mid-caps, and small caps.

• In last 11 years, no sector has led returns more than twice. In fact, 4 sectors appear twice and 3 sectors appear just once as leaders in last 11 years.
• In 5 out of 11 years, large cap oriented sectors have been worst performers, underlining the need for a flexible capitalization-based approach to investing.
• In the last 11 years, large caps were the best performers in 3 years, mid-caps in 1 year and small caps in 7 years. A mix will give a balance of alpha and beta.
• The flexible and dynamic approach allows the fund to capitalize on special situations like spin-offs, mergers, buybacks, restructuring, insider activity etc.

Investors need to evaluate the performance of flexi-cap funds over a minimum period of 5 to 7 years to get a ringside view.

TOP PERFORMERS AMONG FLEXI-CAP FUNDS IN INDIA

The table captures the best performing flexi cap funds in India, on 5-year CAGR returns.

Scheme Name	Returns (%) 1-Year	Returns (%) 3-Years	Returns (%) 5-Years	Daily AUM (₹ in Crore)
Quant Flexi Cap Fund	-3.91	22.24	35.16	7,240
HDFC Flexi Cap Fund	15.60	26.54	33.63	75,138
JM Flexi Cap Fund	1.79	28.14	30.57	5,895
Franklin India Flexi Cap Fund	10.90	23.07	30.25	18,540
Parag Parikh Flexi Cap Fund	13.83	22.88	28.85	1,02,851
Edelweiss Flexi Cap Fund	9.60	22.71	28.19	2,614
HSBC Flexi Cap Fund	9.90	21.95	27.37	4,876
PGIM India Flexi Cap Fund	10.84	15.90	26.34	6,214
ABSL Flexi Cap Fund	12.86	20.11	25.94	22,659
Union Flexi Cap Fund	6.84	18.83	25.89	2,283

Data Source: AMFI

There are 39 flexi-cap funds in India, managing a corpus of ₹4,63,676 Crore. In last 1 year, average returns of flexi cap funds has been 7.84% with maximum returns of 17.24% and minimum returns of -10.47%. In last 3 years, the average returns of flexi cap funds has been 20.01% with maximum returns of 28.14% and minimum returns of 7.29%. In the last 5 years, the average returns of flexi cap funds has been 25.61% with maximum returns of 35.16% and minimum returns of 19.48%. Despite short term volatility due to style discrepancies, flexi cap funds have done very well over the longer term with limited downside risk.

GLANCE AT THE UNIFI FLEXI CAP FUND NFO

Here are key details of the Unifi Flexi Cap Fund NFO.

• The NFO opened on May 19, 2025 and closes on May 30, 2025. Post the allotment of units to investors, the fund will re-open for fresh purchases and redemptions from June 12, 2025. The fund will dynamically allocate across large caps, mid-caps, and small caps.
• On the risk-o-meter, Unifi Flexi Cap Fund is classified as “Very High Risk Fund,” due to its predominant exposure to equities and, the additional risk of fund manager discretion in allocation across large caps, mid-caps, and small caps.
• Investment objective is to generate capital appreciation over the long term through a diversified portfolio of predominantly equity-based investments. The bottom-up stock selection will be done on Growth at Reasonable Price (GARP) model.
• Exit load of 1.00% on redemption value is applicable, if redeemed within 12 Months of allotment. There is no exit load after 12 Months. Investors are advised to hold for minimum 5-7 years to realize the full benefits of a flexi-cap approach to equities.
• Unifi Flexi Cap Fund offers Regular and Direct plans. It also offers Growth option and IDCW option to investors. V N Saravanan, Aejas Lakhani, and Karthik Srinivas are the designated fund managers.
• Minimum application amount in NFO is ₹5,000 and additional lumpsum investments also must be ₹5,000 minimum. Monthly SIPs must be for minimum ₹500 per instalment.
• The Unifi Flexi Cap Fund is benchmarked to the Nifty 500 TRI. The fund objective is to outperform the returns on Nifty 500 TRI, although there is no guarantee on returns.
• Unifi Flexi Cap Fund, will be classified as equity fund for tax purposes. STCG will be taxed at 20.8% (including surcharge). LTCG will be taxed at 12.5%, after maximum exemption of ₹1.25 Lakhs per financial year.

Unifi Flexi Cap Fund offers a GARP-based approach to selecting stocks across large caps, mid-caps, and small caps. The fund will balance stability and alpha generation.