With so many mutual funds vying for attention, it can sometimes get overwhelming to figure out what each scheme exactly offers and just how relevant and beneficial they are to you as an investor. Flexi-cap Funds fall under this category with many of us not exactly sure what it means and just how advantageous they can be to potential investors. Which is why we’ve decoded everything you need to know about investing in flexi-cap funds.
What Are Flexi-cap Mutual Funds –
Let’s first understand what flexi-cap funds are. Flexi-cap funds typically invest in well-positioned companies regardless of their market capitalisation, be it large-cap, mid-cap, and small-cap stocks. In other words, flexi-cap funds invest in stocks of all the large-cap, mid-cap, and small-cap companies in a bid to deliver stellar returns to investors.
Flexi-cap funds allow investors to diversify their investment portfolio across companies with different market capitalisation as well as mitigating risk and lowering volatility.