Mutual funds are a common pool of investment by investors, which is managed by a fund manager. The fund manager backed by research team, creates a portfolio guided by mandate to invest in large-caps, midcaps, small caps or a mix of three. However, a large-cap mutual fund has to invest minimum 80% in large companies, a midcap fund has to invest minimum 65% in mid-size companies and similarly small cap fund has to invest minimum 65% in small companies. For a multi-cap fund, the fund manager has to invest minimum 25% each in large, mid, small cap companies.
Thus rule based investing may result in situations where the fund manager is unable to take a large exposure in case the opportunities lies therein.
|Year||S&P BSE LargeCap||S&P BSE MidCap||S&P BSE SmallCap|
The above table illustrates that no single segment does well consistently, hence having the flexibility to build a portfolio as per situation is a key advantage. A flexi cap fund may invest any percentage i.e. 0-100% in large / mid / small cap. This flexibility provides the fund manager the leeway to maximize on the prevailing market opportunities and build wealth for investors.
Mutual funds from the flexi-cap segment curated for you.
|Scheme Name||NAV||AUM((₹cr)||1Y||3Y||5Y||Large||Mid||Small||Debt||Recommended Horizon||Action|
|Aditya Birla SL Flexi Cap Fund(G)||1,048.7||14144||63.5||14.6||15.7||62.3||24.1||8.8||4.8||5+ Years||Click to invest|
|HDFC Flexi Cap Fund(G)||886.8||25232||66.0||14.4||14.0||78.8||9.8||8.7||2.7||5+ Years||Click to invest|
|UTI Flexi Cap Fund(G)||231.6||18405||69.6||18.7||17.3||60.87||34.41||4.7||-||5+ Years||Click to invest|
|ICICI Pru Flexi Cap NFO||10||-||-||-||-||-||-||-||-||5+ Years||Click to invest|
NAV & Returns: As of 30 June 2021 ; eg. If Rs.10,000 is invested and NAV is 1000/- you receive 10 units
A lump-sum investment of
Rs. 10000 would have grown to
|Scheme Name||NAV||AUM((₹cr)||1Y||3Y||5Y||Recommended Horizon||Action|
|Aditya Birla SL Flexi Cap Fund(G)||1,048.7||14144||16,351||15,040||20,709||5+ Years||Click to invest|
|HDFC Flexi Cap Fund(G)||886.8||25232||16,601||14,982||19,266||5+ Years||Click to invest|
|UTI Flexi Cap Fund(G)||231.6||18405||16,958||16,707||22,207||5+ Years||Click to invest|
|ICICI Pru Flexi Cap NFO||10||-||-||-||5+ Years||Click to invest|
A monthly SIP of Rs.1000 – would result in wealth creation. It’s always a good time to start a SIP
A flexi cap fund will be suitable to you if you require your fund manager to be agile and make appropriate investments across market cap without limitations.
Style: It is an aggressive strategy compared to multi-cap funds.
Taxation: Flexi-cap funds are equity oriented funds, hence short term capital gains are taxed at 15% while long term capital gains after 1 year, for gains above 1 Lakh, at a rate of 10% without indexation.
Liquidity: Withdraw anytime you like. If you redeem (sell) on Monday, you receive the money on Thursday (T+3). You can sell in parts as well.
Minimum Amount: Start a SIP for as low as Rs.500. Lump-sum at Rs. 5,000
Time Horizon: It is best suited if you have a time horizon of at least 5 years+. However, there is no lock-in, so invest anytime, exit anytime.
You will receive funds as per the prevailing market value.
How to invest: Click here.
SIP or Lump-sum: In lump-sum investment, market timing plays a role in the short run, however if invested for long periods (5yrs+), both options are good. SIP helps you average your per unit cost.
Can I stop SIP: Yes, at any time. But remember SIP is a Good EMI, so longer the investment more is the wealth created.
To conclude, Flexi-cap funds offer your fund manager the flexibility to adapt to market conditions and investment in appropriate companies.
Hence he can wear a sweater when cold, hold an umbrella when it rains and wear a shirt when warm, not forced to do all three, he has a choice.
To invest in MF click