Flexi-Cap vs. Multi-Cap Mutual Funds:
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Choosing the Right Mutual Fund Structure
Many mutual fund investors get confused between Multi-Cap and Flexi-Cap schemes. While they sound similar, their investment mandates are significantly different under SEBI rules.
What is the main difference between Multi-Cap and Flexi-Cap funds?
Multi-Cap funds are legally mandated to invest a minimum of 25% each in Large-cap, Mid-cap, and Small-cap stocks. Flexi-Cap funds have no such limits and the fund manager can dynamically shift assets across any market cap based on trends.
Which fits your portfolio?
- Multi-Cap: Best for aggressive investors looking for guaranteed mid-and-small-cap exposure over the long run.
- Flexi-Cap: Best for moderate investors who want a professional fund manager to manage market cap risk during downturns.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
Statutory Warning & Risk Disclaimer: Investment in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Content provided on this blog is for informational and educational purposes only.