Is Flexicap and multicap same?
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Is Flexicap and multicap same?
“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.
Are Flexicap funds good?
The flexi cap mutual fund category had a solid positive inflow in September 2021, despite the benchmark indexes trading at record highs, with the BSE Sensex hovering over 60,300 and the Nifty exceeding the 18,000 level. Flexi Cap Funds have seen a positive inflow of Rs 2,008.67 Cr among Growth/Equity Oriented Schemes.
What are Flexicap funds?
A flexi-cap fund is a type of mutual fund that is not restricted to investing in companies with a predetermined market capitalization. This type of fund structure will be indicated in the fund’s prospectus. A flexi-cap fund can provide the fund manager with greater investment choices and diversification possibilities.
Is multicap fund good?
Risk: Top multicap mutual funds have a diversified portfolio. Hence the risk in these funds is moderate. They are more risky than pure large cap funds but less risky than pure mid cap and small cap funds. In market lows, the fund plays safe.
Is it good to invest in multicap funds?
“Multicap funds are higher on the risk-return profile compared to flexicap and large & midcap schemes,” Nagda points out. Nagda adds that if investors already have a well-diversified portfolio of large, mid and small-cap funds, then getting into a multicap fund doesn’t make sense.
Which is best Parag Parikh mutual fund?
List of Ppfas Mutual Funds in India
| Fund Name | Category | Risk |
|---|---|---|
| Parag Parikh Flexi Cap Fund | Equity | Very High |
| Parag Parikh Liquid Fund | Debt | Low to Moderate |
| Parag Parikh Tax Saver Fund | Equity | Moderately High |
| Parag Parikh Conservative Hybrid Fund | Hybrid | Moderately High |
Is Multicap fund good for long term?
This reduces the risk in the investment. Multicap mutual funds are less risky than pure mid cap or small cap funds. However, they are slightly riskier than large cap funds.. SIP and long term investing: Investing in Multi cap mutual fund through SIP for medium to long term (5-7 years) has quite a few benefits.
What is the difference between multicap and flexi-CAP funds?
Both funds will fit into the definition of Flexi-cap funds. So the newly created Flexi-cap category does provide managers with sufficient flexibility in terms of investment choices. And it’s much higher than that of Multicap fund’s 25-25-25 Rule. SEBI had brought about the Multicap rule change with the agenda of making funds more true-to-label.
How much equity should be in a flexicap fund?
On the other hand, a Flexicap fund X needs to have minimum 65\% in equity. So a fund manager can have a large & mid-cap oriented Flexi cap fund with (let’s say) 60\% in large caps, 30\% in mid-caps and only 10\% in small-caps.
Should you invest in multi-cap mutual funds?
In the stock market, long-term investment opportunities are always available. Whats needed is the ability to move money around as and when bargains become available. Multi-cap and Flexi-cap mutual fund schemes are specifically designed to take advantage of such changes.
What is a flexi-cap strategy?
As a result, many funds are expected to re-categorize themselves as flexi-cap schemes in order to retain their existing portfolios. This flexi-cap strategy will allow fund managers to invest wherever they feel opportunities are available, without market-cap restrictions.