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Are flexi cap and multicap fund same?
The large-cap allocation of multi-cap funds will limit downside risks in volatile markets. The flexi-cap category of equity funds, on the other hand, will invest at least 65\% of the total assets in equity investments without any defined limits in terms of exposure they should take to large-, mid- or small-cap segments.
What is a Flexi Cap fund?
What Is A Flexi Cap Equity Fund: Top Rated Flexi Cap Funds To Invest In 2022. Unlike a focused equity fund, the Flexi cap funds are the dynamic equity funds, which will invest the assets across various market capitalizations like large cap, mid cap, and small cap funds.
Is it good to invest in Flexi Cap fund?
Investing in Flexi cap funds will make your equity portfolio well hedged between risk and return, resulting in wealth growth and inflation-beating returns to investors by making their equity allocation across large-cap, mid-cap, and small-cap market segments.
Who should invest in flexi cap funds?
4 days ago
If that is your reason to invest, you should invest in flexi cap funds. These schemes are typically recommended to investors with moderate risk appetite to achieve their long term goals. Investors should invest in these schemes with an investment horizon of five to seven years.
Which is best multicap fund?
A multicap mutual fund is an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks….Best Performing Multicap Funds to Invest in 2021.
| Fund Name | 3 Year Returns |
|---|---|
| PGIM India Flexi Cap Fund | 17.60\% |
| Principal Focused Multicap Fund | 14.20\% |
| Axis Flexi Cap Fund | 13.70\% |
| SBI Focused Equity Fund | 12.10\% |
What is multicap fund?
Definition: These are diversified mutual funds which can invest in stocks across market capitalization. Description: These funds invest in stocks across market capitalization. That is, their portfolio comprises of large cap, midcap and small cap stocks.
Which are the best multicap funds?
Are multicap funds good?
Risk: Top multicap mutual funds have a diversified portfolio. Hence the risk in these funds is moderate. They are more risky than pure large cap funds but less risky than pure mid cap and small cap funds. In market lows, the fund plays safe.
What is the difference between multicap and flexicap funds?
So where Multicap funds will have to invest at least 25\% each in large caps, mid-caps and small caps (totalling to 75\%), the Flexicap funds as their name suggests are kind of go-anywhere funds. Let’s take a comparative example to understand this difference between Multicap funds vs Flexicap funds.
Are Flexi-CAP funds the right option for You?
If you are worried about the high exposure of multi-cap funds towards small-cap, investing in flexi-cap funds is the right option for you. FlexiCap funds provide an opportunity for investors to invest across market caps and mitigate the risk of concentration.
What are multi CAP funds and how do they work?
If understood in simple language, multicap funds invest in stocks of all three types of capitalization, large cap, small cap and mid cap. Thus Multi Cap Funds give you the advantage of all three in one fund. Asset allocation means where the fund manager will invest the money deposited by the investors in the mutual fund scheme.
How much equity should be in a flexicap fund?
On the other hand, a Flexicap fund X needs to have minimum 65\% in equity. So a fund manager can have a large & mid-cap oriented Flexi cap fund with (let’s say) 60\% in large caps, 30\% in mid-caps and only 10\% in small-caps.