Are Flexi Cap Funds the right investment for you? There is no one answer to this question as it depends on your financial situation and goals. However, Flexi Cap funds can provide a good return on investment, but they are not always the best option for everyone.
What is Flexi Cap Fund?
A Flexi Cap Fund is a type of mutual fund that can invest across market capitalizations. Flexi cap funds have the flexibility to allocate their assets across different market capitalizations, which can include small-cap, mid-cap, and large-cap stocks.
This type of fund is considered to be more flexible than pure-play large-cap or small-cap funds, as it can shift its allocation depending on the market conditions.
The investment objective of flexi cap fund is to generate long-term capital growth by investing in equity and equity-related securities of companies across market capitalization.
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The pros and cons of Flexi Cap Funds
Pros
Diversification: Flexi cap funds offer diversification across different market capitalizations, which can help to spread risk and potentially reduce volatility in an investor’s portfolio.
Flexibility: As the name suggests, Flexi Cap Funds have the flexibility to adjust their asset allocation depending on market conditions, which can help to potentially maximize returns.
Potential for higher returns: Flexi Cap Funds have the potential to generate higher returns than pure-play large-cap or small-cap funds, as they can invest in a wider range of companies
Cons
Risk: While diversification can help to spread risk, flexi cap funds can still be subject to market risk and the risk of individual stocks.
Lack of specialization: Pure-play large-cap or small-cap funds may have a more focused investment strategy, which could potentially lead to higher returns in those specific market segments.
Less focus on specific sectors: Flexi cap funds may have less focus on specific sectors, which can be a disadvantage for investors looking for exposure to specific industries
List of Flexi Cap Fund
| Scheme Name | Launch Date | AUM | |
|---|---|---|---|
| ABSL Flexi Cap Fund | 14-08-1998 | 16,192 | |
| Axis Flexi Cap Fund | 05-11-2017 | 10,763 | |
| Bank of India Flexi Cap Fund | 05-06-2020 | 345 | |
| Canara Robeco Flexi Cap Fund | 16-09-2003 | 8,729 | |
| DSP Flexi Cap Fund | 29-04-1997 | 7,909 | |
| Edelweiss Flexi Cap Fund | 05-01-2015 | 1,065 | |
| Franklin India Flexi Cap Fund | 29-09-1994 | 10,431 | |
| HDFC Flexi Cap Fund | 01-01-1995 | 32,154 | |
| HSBC Flexi Cap Fund | 24-02-2004 | 3,235 | |
| ICICI Flexi Cap Fund | 05-07-2021 | 11,468 | |
| IDBI Flexi Cap Fund | 28-03-2014 | 368 | |
| IDFC Flexi Cap Fund | 14-09-2005 | 5,804 | |
| JM Flexi Cap Fund | 23-09-2008 | 250 | |
| Kotak Flexi Cap Fund | 05-09-2009 | 37,418 | |
| LIC MF Flexi Cap Fund | 15-04-1993 | 396 | |
| Mahindra Flexi Cap Fund | 23-08-2021 | 941 | |
| Motilal Oswal Flexi Cap | 08-04-2014 | 8,910 | |
| Navi Flexi Cap | 02-07-2018 | 212 | |
| Nippon Flexi Cap Fund | 05-08-2021 | 4,167 | |
| PPFAS Flexi Cap Fund | 05-05-2013 | 28,248 | |
| PGIM Flexi Cap Fund | 05-02-2015 | 5,283 | |
| Quant Flexi Cap Fund | 01-09-2008 | 919 | |
| SBI Flexi Cap Fund | 05-09-2005 | 16,160 | |
| Shriram Flexi Cap Fund | 05-09-2018 | 63 | |
| Tata Flexi Cap Fund | 05-08-2018 | 2,208 | |
| Taurus Flexi Cap Fund | 29-01-1994 | 255 | |
| Union Flexi Cap Fund | 10-06-2011 | 1,360 | |
| UTI Flexi Cap Fund | 05-08-2005 | 24,929 |
Conclusion
In conclusion, flexi cap funds are a type of mutual fund that can invest across market capitalizations. They offer investors the flexibility to adjust their asset allocation depending on market conditions, which can help to potentially maximize returns.
It’s important to keep in mind that investing in mutual funds, including Flexi Cap Funds, carries risk and it’s important to consider your risk tolerance, investment horizon and financial goals before investing.
