THE WEALTH COMPANY FLEXI CAP FUND - DIRECT IDCW

THE WEALTH COMPANY FLEXI CAP FUND - DIRECT IDCW lags behind most of its peers in the Flexi Cap category. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 46/100.

Cost: At 1.36%, the expense ratio runs 46% above the Flexi Cap category average of 0.93%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.32 — 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 16.24% 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.