How Do Flexi Cap Mutual Funds Work?

Flexi Cap Mutual Funds are dynamic equity schemes that provide fund managers unprecedented flexibility in stock allocation. These funds mandate a minimum of 65% investment in equity and equity-related instruments across market capitalisations. Unlike rigid category-specific funds, Flexi Cap Funds can strategically shift investments between large, mid, and small-cap stocks based on market opportunities and economic conditions.

Fund managers continuously analyse market trends, company financials, sectoral performance, and macroeconomic factors to optimise portfolio composition. This adaptive approach allows them to:

• Capitalise on emerging opportunities
• Mitigate risks through dynamic asset allocation
• Maintain a balanced portfolio across market segments

The flexibility enables these funds to potentially generate superior returns by moving swiftly between different market capitalisation segments.