Is Flexi Cap and Multi-Cap same?
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Is Flexi Cap and Multi-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.
Is it good to invest in Flexi Cap fund?
Investing in Flexi cap funds will make your equity portfolio well hedged between risk and return, resulting in wealth growth and inflation-beating returns to investors by making their equity allocation across large-cap, mid-cap, and small-cap market segments.
Which cap is best for mutual fund?
The following table shows the top large cap funds as per the past 3-year and 5-year returns:
| Mutual fund | 5 Yr. Returns |
|---|---|
| Canara Robeco Blue Chip Equity Fund | 19.49\% |
| Axis Bluechip Fund – Direct Plan – Growth | 21.92\% |
| Kotak Bluechip Fund – Direct Plan – Growth | 18.14\% |
| UTI Mastershare Unit Scheme – Direct Plan – Growth | 18.14\% |
Which is better large cap or multi-cap?
Definition of Multi-Cap Funds While large-cap funds provide better stability to your portfolio, mid-cap, and small-cap funds provide exceptionally high returns.
What is a 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 the difference between multi CAP funds and flexi CAP funds?
There are certain restrictions in asset allocation in multi cap funds whereas in flexi cap funds the fund manager can invest in large cap, small cap and mid cap as per his wish. In actual terms, the features that were there in the old Multicap category have now been put in the Flexi Cap category.
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.
Are multi CAP funds a good investment for first-time investors?
Multi cap funds due to their diversified portfolio are ideal for first-time equity investors as it keeps the risk in control. Also since these investors might not be aware of the risks that come with investing in companies of a specific size, a multi cap fund is the best bet for them.
How do small- and mid-cap funds compare to large-caps?
Small- and mid-cap funds typically outperform large-caps during a bull market (Chart 2), but decline more when the sentiment turns bearish. The choice of a right fund should be in line with the risk appetite, return expectations and investment horizon of the investor. Chart 2: Market-phase performance of large-, mid- and small-cap funds