From what are flexi-cap mutual funds to why should one opt for it, a complete guide
Flexi-cap mutual funds unlike other equity funds have specific mandates (e.g., large-cap funds invest predominantly in large-cap stocks), flexi-cap funds have no fixed allocation requirements. They can invest dynamically based on market conditions and the fund managers discretion.
Flexi-cap mutual funds are popular today as they allow fund managers to invest across market capitalisations (large-cap, mid-cap, and small-cap) based on market conditions and the fund's investment strategy. Let's deep dive into the mechanism of this investment option in the mutual fund space.
How do Flexi-cap mutual funds work?
Flexi-cap mutual funds unlike other equity funds have specific mandates (e.g., large-cap funds invest predominantly in large-cap stocks), flexi-cap funds have no fixed allocation requirements. They can invest dynamically based on market conditions and the fund manager's discretion.
Should investors opt for flexi-cap mutual funds?
As per a report by Trust Mutual Fund, following are the reasons one can opt for flexi-cap mutual funds:
1. Market cap leadership fluctuates every year
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