Equity: Flexi Cap

What is it?

Flexicap equity mutual funds invest in stocks with different market caps. They do not have any restrictions related to market cap as well as percentage allocation of funds. So, they have higher flexibility in the selection of stocks. The SEBI has defined the first 100 companies by market cap as large-cap companies, the next 101 to 250 companies by market cap as mid-cap companies, and companies after that as small-cap companies.

Objective

The objective of flexicap funds is to generate maximum returns by diversifying their investments across different market caps.

Suitability and opinion

Flexicap funds are suitable for investors with moderate to high risk appetites. We believe that this category is the best option if you want to take exposure to Indian equity markets using mutual funds. Here, there are no rules on stock selection as well as allocation. So the fund managers have complete freedom in managing the fund. This category can be ideal for you if you have a time horizon of at least 3 years. Investors looking to create long-term wealth by investing in equity should consider these funds.