What is flexi cap and multicap fund?

A flexicap fund has the freedom to invest in proportion of the portfolio in any market cap without restriction. A multicap fund on the other hand will need to hold a minimum of 25\% each in large, mid and small caps,” says Aashish Somaiyaa, CEO at White Oak Capital.

What is equity Flexi Cap?

A flex-cap fund allows investors to diversify their investment portfolio across companies of different market capitalisation, mitigating risk and lowering volatility. They are also referred to as diversified equity funds or multi-cap funds.

What is diversified equity fund?

What is a Diversified Equity Fund? A diversified equity fund invests in companies regardless of size and sector. It diversifies investments across the stock market in a bid to maximize gains for investors. They are offered by unit-linked insurance plans / ULIPs, mutual funds and other investment firms.

Is Multicap and Flexi Cap same?

The large-cap allocation of multi-cap funds will limit downside risks in volatile markets. The flexi-cap category of equity funds, on the other hand, will invest at least 65\% of the total assets in equity investments without any defined limits in terms of exposure they should take to large-, mid- or small-cap segments.

Which is better multicap or mid-cap?

Therefore, in the long run, multi-cap funds are usually better wealth creators than other categories of funds as they can take advantage of investment opportunities across the market. Further, returns from the multi-cap category are comparable to mid-cap category over the long term which comes with lesser volatility.

What is thematic fund?

Thematic funds are predominantly a type of equity mutual funds that invest in companies tied around a well-defined theme across various sectors. For instance, a fund built on farming/agriculture theme might invest in equity stocks belonging to the automobiles, chemicals, fertilizers, core agriculture stocks.

What is multi-cap fund?

Definition: These are diversified mutual funds which can invest in stocks across market capitalization. Description: These funds invest in stocks across market capitalization. That is, their portfolio comprises of large cap, midcap and small cap stocks.

What is diversified large cap funds?

Diversified funds are mutual funds that aim at diversifying investments across multiple sectors, irrespective of the size or market capitalisation. The fund manager switches between large cap, mid cap and small cap stocks based on the market conditions.

What is the difference between flexi Cap Fund and multi cap fund?

While flexi cap fund invests in equity investments without any defined limits for asset exposure to large, mid or small cap segments of the market, multi cap fund invest in equity investment with restriction of asset allocation of 25\% in each of large-cap, mid-cap and small-cap stocks. Should I have Flexi Cap fund in my portfolio?

What are multicap mutual funds?

Multicap funds are diversified equity mutual fund schemes which invest across market cap segments i.e. large cap, midcap and small caps. Multicap funds have historically been one of the most popular mutual fund categories among investors in India.

What is the AUM of flexi CAP funds in May 2021?

In flexi cap funds, AUM was Rs 1.68 lakh crore in May 2021. The quantum of Rs 1.68 lakh crore is net of inflows / outflows over the period and market movement i.e. when the equity market moves up, AUM moves up along with.

Are small cap funds better than large cap funds in 2021?

Historically, small cap stocks have done better. Till 15 June 2021, 10-year returns from small cap funds (regular option) is 17.47\% annualized and that from Large Cap funds is 12.39\%. However, volatility has been higher in small cap funds.