Flexi cap Mutual Fund: Future Of Investments | Top 7 best Flexi cap fund
Flexi cap fund- here we are explaining every thing about flexi cap fund i.e. how these funds are different from other mutual fund, how it works, best Flexi cap fund
Table of Contents
Flexi Cap Funds
Flexi cap funds invest in all types of stocks across the market i.e. large-cap, mid-cap and small-cap stocks. This type of fund has the flexibility to invest across market capitalisations. They are good for high risk investors, who are looking to build wealth over the long term. Flexi cap mutual funds provide fund managers the freedom to invest without any restriction or compulsion in various stocks such as large-cap, mid-cap and small-cap stocks.
SEBI, on November 6, 2020 launched a new category of Equity Mutual Fund scheme named ‘Flexicap Fund’. SEBI announced in the circular that flexi-cap funds will have to invest at least 65% of their assets in equities and equity-related instruments. Unlike multi-cap funds, there is no minimum investment limit in large, mid and small caps, the exposure can be managed dynamically.
- Not any restriction of market capitalisation for fund manager.
- Flexi-cap fund gives the right to the fund manager to change investment and diversification possibilities.
- The size of a company(such as large, mid or small cap) is not a constraint for flexi-cap funds.
- Aims to capitalise on investment opportunities across the market.
- Fund manager have power to Balances the risk and return aspects because of diversified portfolio
- Good for Investors who want flexibility to invest in companies
- Best For Investors who are high-risk investor and investment can be done for more than 5 years
Working of Flexicap fund
For the money of investors, many rules and regulations have been imposed by SEBI on the fund manager houses, in which fund managers can be invested according to the market cap of the stocks. here we discuss about the market cap.
Types of Companies by Market Cap
Market capitalisation is one of the easiest ways by which mutual fund houses choose the companies in which to invest the money. Market capitalisation refers to the total market value of the company’s shares. We normally refer to the market capitalisation as “market cap”. Market cap is calculated by multiplying the company’s shares by the current market price of one share. here are three type of companies by market cap
-
Large-cap :
Large cap companies have market caps of Rs.20000 crores or more. Investing in large-cap companies often does not give good returns to the investors in the short term, however, in the long term, the investors in these companies get good returns and dividends.
-
Small Cap:
small cap companies are those that have a market cap of less than Rs.5000 crores. These companies are considered to be high-risk investments due to their being new and having a specific market. These companies are generally more vulnerable to economic slowdown as they are new.
-
Mid Cap:
Whose market cap is above Rs.5000 crores and less than Rs.20000 crore
Difference between Multicap And Flexicap Funds
The basic difference between multi-cap funds and flexi-cap funds is to follow the 25-25-25 rule of holding at least 25% each in large-cap stocks, mid-cap stocks and small-cap stocks in multi-cap funds.Whereas to give flexibility to the fund managers (AMC) in flexi cap funds, SEBI has given the freedom to invest in any company. because of this fund houses are free to invest in any good performing company whether that company is Large cap, Mid Cap or Small Cap. Also, if an invested company is not performing well, then investment can also come out of it.
Best Flexicap Fund
- Parag Parikh Flexi Cap Fund
- Quant Flexi Cap Fund
- IIFL Focused Equity Fund
- UTI Flexi Cap Fund
- SBI Flexi Cap Fund
- PGIM India Flexi Cap Fund
- Aditya Birla Sun Life Flexi Cap Fund
Note :
Specific person who may receive this information. we pithyinfo.secretsofweb.in team does not guarantee/ indicate any returns/and shall not be held liable for any loss, expenses, charges incurred by the recipient. The recipient should consult their legal, tax and financial advisers before investing. Recipient of this information should understand that statements made herein regarding future prospects may not be realised or achieved. The returns from mutual funds are subject to market fluctuations while returns on savings account, fixed deposits and bonds are fixed.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
English
Arabic
French
Hindi
Punjabi
Russian
Spanish
Tamil
Telugu