TATA Flexi Cap Fund Direct Plan - Reinvestment of Income Distribution cum capital withdrawal option

TATA Flexi Cap Fund Direct Plan - Reinvestment of Income Distribution cum capital withdrawal option ranks among the stronger performers in the Flexi Cap Fund category, backed by a 4-star rating. Consistent 3-year performance combined with a strong rating makes this one of the more credible options in its space. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 81/100.

Cost: At 0.78%, the expense ratio is roughly in line with the Flexi Cap Fund category average of 0.74% — cost isn't a standout factor either way for this fund.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -1.2 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 13.88% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors who want the fund manager to freely allocate across large, mid and small caps rather than being boxed into one segment. The High risk rating means near-term volatility should be expected — this isn't a fund to check daily.