Flexi Cap Funds
Flexi Cap Funds is a new category established by SEBI in November 2020. Flexi-cap funds are those that invest in companies with a range of market capitalizations, such as large-cap, mid-cap, and small-cap equities.
A Flexi-cap fund allows investors to diversify their investment portfolio across companies with varying market capitalizations, thereby reducing risk and volatility. Unlike mid-cap and small-cap funds, which invest in firms based on market capitalization, Flexi-cap funds can invest in any company regardless of market capitalization. The fund manager assesses the growth potential of a wide range of enterprises, regardless of size, and allocates funds to various market segments and companies. Axis Mutual fund offers a variety of schemes including the Flexi Cap Fund to investors.
Multi-Cap funds are equity funds that invest in stocks of companies with different market capitalizations. For the investment goal, the investments are made in varying amounts. Multi-cap funds buy inequities that provide the best balance of fast growth, risk, and value to generate wealth.
The stock is chosen based on the investor’s investment style, either value or growth. Other quantitative measures, such as the P/E ratio, earnings per share (EPS), and enterprise value, may also be utilized by the fund manager to ensure that the portfolio contains only high-quality companies. As a result, if you invest in a multi-cap fund, you will be exposed to a wide range of firms and be fairly diversified.
Who Should Invest in Flexi Cap Fund Vs. Multicap Fund?
Investors who don’t want to deal with the hassle of buying stocks or deciding which market capitalization fund is best for them can start with multi-cap funds. In Multi-cap funds, the funds will be invested at least 25% in small, mid, and large-cap equities, with the other 25% dynamically allocated based on market movements. If you are looking for long-term wealth growth and have a high-risk tolerance, Axis Multicap Fund may be an excellent alternative for you. As it also provides various Cap funds like Small Cap, Mid Cap and Large Cap which the investors can also choose from.
For example, you can invest in the NFO with a minimum of Rs. 5000 and in multiples of Rs. 1 after that. Using the SIP calculator App, one can get an estimated idea of their returns after the investment tenure. You can invest in the program through a registered mutual fund agent or directly through their website.
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Flexi Cap Fund?
Flexi-Cap Mutual Fund is suitable for investors looking for long-term capital gain or income and capital gain by investing primarily in an actively managed diversified portfolio of equities and equity-related assets, including derivatives. This product may interest investors looking for a large-cap oriented fund with a tactical allocation to mid-cap and small-cap equities. Invest in the category over 5 years. Using the Sip calculator app from Axis Mutual Fund will help with the capital gains and expected returns from the investor’s monthly SIP investment. Investors should seek the advice of their financial advisors if they have any reservations about whether the product is appropriate for them.
Benefits of Investing in Flexi Cap Fund Vs. Multi-Cap Fund?
Some of the benefits are as follows:
- Diversification is one of the most significant benefits of investing in Flexi-cap funds.
- These funds diversify the portfolio by investing across the market cap spectrum, i.e., large, mid, and small-cap funds. Rather than investing in a single market cap, you can benefit from it all by investing in Flexi-cap funds.
- Flexi-cap fund managers invest in firms of all sizes based on their long-term growth prospects. The managers regularly modify portfolio allocations amongst different sectors to maximise the fund’s performance within established investment objectives.
- Flexi-cap funds can generate consistent long-term returns because they invest in large, mid, and small-cap funds.
- These funds are well-known for their ability to balance risk and return. For example, under some market scenarios, if one fund underperforms, other funds are available to balance the returns. As a result, investors seek the benefit of balancing the risk-and-returns of this fund.
- With the help of the Axis Mutual Fund mobile application, it is now much easier to invest in Flexi-funds. With the mobile app, you can track your account, see your Purchase, Redeem, Switch and initiate your SIP investment. It also provides a SIP calculator app to calculate the estimated capital gains and expected returns from the investor’s investment.
Some of the benefits are as follows:
- Multi-cap funds invest in big, medium, and small-cap firms in several industries. Fund managers are not restricted by company size and can choose those that best match the fund’s investment objective. Large-cap can stabilize a portfolio, whereas mid and small caps can help increase capital.
- Multi-cap funds can put their money into companies projected to benefit from increased economic activity. It enables the fund manager to change the cap curve allocation based on the scheme mandate, selecting overarching themes that drive economic and profits development.
- Fund managers can manage risk by reducing allocation to riskier portions of the market and reducing its impact by boosting allocation to companies that are ready to deliver. They can invest across all market caps and adjust allocation based on market direction, as specified by SEBI.
How to Invest in Multi-Cap Funds and Flexi-Cap Funds?
It is now much easier to invest in Multi-Cap funds or Flexi-Cap funds online. Axis Mutual Fund provides services through which one can easily invest anytime and anywhere. With just a few steps, one can invest easily through a website or an app. The registration process is also quite simple and will only need KYC verification. On the website, you can select whichever type of schemes you want and start investing. In the Axis Mutual Fund app, you have a better experience browsing through the schemes with its user friendly UI system, and if you want to check the total value of your investment, you can choose a SIP Calculator App to estimate the returns you will get.