What is a Flexi Cap fund in simple terms?

A flexi cap fund is an equity mutual fund that can invest across large, mid, and small-cap stocks. There is no fixed limit regarding how much a fund manager can allocate to each of these market sizes. The decision is made based on market conditions.

Are Flexi Cap funds risky?

p funds are exposed to the equity market, which makes them volatile. However, since your assets remain diversified across different market caps, these funds can manage volatility better than pure mid or small-cap funds.

Is a Flexi Cap fund better than a large-cap fund?

A flexi cap fund is not necessarily better, but more flexible compared to large-cap funds. They can help you capitalise on growth opportunities that large-caps fail to benefit from, while maintaining stability.

Can beginners invest in Flexi Cap funds?

Yes. Beginners looking to diversify their exposure to equity markets can invest in flexi cap funds. Those with a long-term investment plan can choose an SIP or a lumpsum investment.