Invest in Best Flexi-cap Funds in India 2024
Discover the best Flexi-cap Funds to invest in India for 2024. Learn who should invest, key benefits, risks, and find the top performing Flexi-cap Funds in the market.
What is Flexi-cap Mutual Funds?
A Flexi-cap mutual fund is an open-ended dynamic equity fund which makes investments in businesses with market capitalization. They specifically invest in large, midsize, and small-cap companies. A minimum of 65% of scheme’s total assets is invested in equity related instruments. Fund managers dynamically change the distribution while maintaining the equity part, based on market conditions.
Who Should Invest in Flexi-Cap Mutual Funds?
- Diversification: Individuals looking for a diversified equity portfolio which adjusts itself dynamically to market conditions even during bear phase
- Moderate Risk Appetite: People with moderate risk tolerance can invest in this funds
- Long-Term Horizon: Ideal for investors who are willing to stay invested for a long term typically from 5 to 7 years
- Passive Investors: Investors who wish to leave the investment decisions to fund managers without directly participating in the market
Best Performing Flexi-cap Mutual Funds
| Fund Name | Category | Risk | 6 Months Return | 1 Year Return | Rating | Fund Size (₹ Cr.) |
|---|---|---|---|---|---|---|
| Bank of India Flexi Cap Fund | Flexi-cap Funds | Very High | 29.07% | 64.98% | — | 5,146.7 |
| HSBC Flexi Cap Fund | Flexi-cap Funds | Very High | 24.10% | 46.26% | — | 4,480.4 |
| JM Flexi Cap Fund | Flexi-cap Funds | Very High | 33.15% | 65.02% | — | 5,321.6 |
| Motilal Oswal Flexi Cap Fund | Flexi-cap Funds | Very High | 27.37% | 56.27% | — | 4,111.26 |
| HDFC Flexi Cap | Flexi-cap Funds | Very High | 21.91% | 42.31% | — | 4,591.23 |
Factors to Consider While Investing in Flexi-Cap Mutual Funds
- Diversified portfolio: People who want portfolio diversification with a strong equity edge, that performs in all market conditions even during bear phase
- Historical Performance: Analyze the fund’s past performance over different market cycles.
- Expense Ratio: Check the expense ratio as higher expense ratio can significantly eat your earnings
Major Benefits of Flexi-Cap Mutual Funds
- Dynamic Allocation: Fund managers can dynamically adjust the fund allocation in order to gain optimal returns
- Concentration risk: Investments are spread out across different market capitalization to prevent concentration risk
- Professional Management: Funds are managed by professional fund manager who have decades of experience of operating in different market conditions
- Higher Returns: Investment in mid cap and small cap companies can potentially fetch you higher risks
Risks Involved in Flexi-Cap Mutual Funds
- Market Risk: Investment in equity are always subject to market conditions
- Liquidity Risk: Since a good chunk of investment goes into small cap funds, liquidity might be a problem
- Fund Manager performance: The fund’s performance is highly dependent on the fund manager’s expertise and decisions. So you ought to research properly before investing
- Concentration Risk: Despite diversification, your investment has the risk of being concentrated in a particular equity sector
- Economic and Political Risk: Changes in economic policy decisions, geopolitical events, and local political climate influences your returns
Frequently Asked Questions about Flexi-Cap Mutual Funds
1. What is the primary difference between Flexi Cap and Multi Cap funds?
Flexi Cap funds has no restriction on market capitalization allocation, whereas Multi Cap funds must invest in a minimum percentage in large, mid, and small cap companies
2. Can Flexi Cap Mutual Funds be suitable for short-term investment goals?
Flexi cap companies are ideal for investors who stay invested over a long term horizon typically 5 to 7 years
3. How often do Flexi Cap funds rebalance their portfolios?
Fund managers dynamically allocate the funds in different sectors based on market conditions
4. How can I choose the best Flexi Cap Mutual Fund?
Consider factors like historical performance, your risk tolerance, expense ratio, fund manager’s track record, and your investment goals before choosing the fund. You can seek the assistance of Fincover, whose MF experts would consider you pick the best Flexi cap Fund in the market