Flexi cap mutual funds are equity funds that have the flexibility to invest in Large, mid & small cap companies. This flexibility lets the fund manager decide where to invest based on which companies are doing well.
Avg. Category Returns 16.29% over 10 years
Comparatively High Risk
Withdraw your money anytime
Ideal for Long-Term Investors
Flexi Cap Mutual Funds are a type of investment fund where your money is put into a regulated pool and then used to buy shares in different kinds of companies: big ones, medium ones, and small ones. This mix helps lower the risk of your investment because if one type of company does badly, it doesn't affect your entire portfolio. These funds can move money around to different kinds of companies as the market changes, which helps maximize the chances of making money.
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AUM ₹4617 Cr •
Expense 0.68%
AUM ₹743 Cr •
Expense 0.93%
AUM ₹1774 Cr •
Expense 0.23%
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Expense 0.81%
AUM ₹14623 Cr •
Expense 1.03%
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Expense 0.45%
AUM ₹60559 Cr •
Expense 0.57%
AUM ₹4116 Cr •
Expense 1.18%
AUM ₹1987 Cr •
Expense 0.95%
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Expense 0.85%
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Expense 0.42%
AUM ₹45912 Cr •
Expense 0.63%
AUM ₹12068 Cr •
Expense 0.57%
AUM ₹19967 Cr •
Expense 0.87%
AUM ₹6807 Cr •
Expense 1.12%
AUM ₹329 Cr •
Expense 2.58%
AUM ₹9977 Cr •
Expense 0.73%
AUM ₹2642 Cr •
Expense 0.68%
AUM ₹20283 Cr •
Expense 0.85%
AUM ₹9660 Cr •
Expense 0.93%
Daily SIP | Weekly SIP | Monthly SIP
Adding Flexi Cap Funds to your investment mix can offer higher returns. Let’s see how!
Diversification
These funds invest in large, mid and small companies. Money managers have the flexibility to tactically allocate across market cap.
Proven Performers
The companies in Flexi Cap Funds have a history of consistent performance, which can mean more reliable growth of your investment.
Spread Out Risk
By including Flexi Cap Funds, you diversify your risk across different companies and sectors, which can protect your portfolio from stock specific risk.
Easy to Start
You can invest in these funds even with a small amount of money and it's simple to buy or sell your investment.
Long-Term Growth
These funds are known for their potential to deliver higher return over time, making them a good match for long-term financial goals.
Given below are some of the points to consider before investing in flexi cap mutual funds, to ensure a correct investment plan:
Expense Ratio
Expense ratio in mutual funds is a management fee that the investors pay to the AMC ( Asset management company) for managing the mutual fund. This fee is part of the pricing/ NAV of a mutual Fund. A lower expense ratio is generally better, as it means more of your money is working for you, and less is going toward fees. Therefore a lower expense ratio especially with Zero commissions could lead to potentially higher returns. Different AMC’s manufacturing Flexi Cap Mutual Funds have different expense ratios dependent upon their cost structures and investment thesis. It is best to evaluate the expense ratios along with their past performance before purchasing a Flexi Cap Mutual Fund.
Investment Risks
Analyse the returns of the flexi cap mutual funds during the last three to five years and compare the same with the returns of benchmark indexes such as Nifty 500 Index and Nifty 200 index as well as category return of flexi cap mutual funds. One should also compare the performance with similar types of equity funds like multi cap equity funds. Use the mutual fund comparison tool in order to compare returns with other funds. Best performing flexi cap mutual funds will outperform nifty 500 and nifty 200 returns as well as average category returns.
Fund Manager’s Performance
The expertise, experience, past performance, and reliability of the fund management team play a crucial role when choosing a particular flexi cap mutual fund. Since the fund manager decides how to distribute funds among different market sizes, it's important to know the manager's qualification, skills and track record in terms of fund management.
Investment Period
Flexi cap mutual funds are well-suited for investors with a long-term horizon, such as those aiming to invest for a period of 5 or 7 years.
AMC AUM (Assets Under Management)
Flexi cap Mutual funds with very small AUM can create liquidity challenges. Therefore it is important to invest in mutual funds that have higher and faster growing AUM.
Some of the limitations of flexi cap mutual funds include the following:
Dependence on Fund Manager's
The success of these funds hinges greatly on the fund manager's ability to select the most promising companies amidst a vast array of options. Their skill in navigating market trends directly impacts the fund's performance, making it crucial to entrust your investments to a competent manager.
Alignment with Investor Risk Preferences
There's a risk of divergence between the risk appetite and return expectations of investors and the fund manager's strategy. Different funds may pursue varying levels of risk, with some favoring aggressive approaches by investing in mid and small-cap companies, while others opt for safer options with larger caps. Selecting funds that match your risk tolerance is vital to avoid either excessive risk-taking or overly cautious investment strategies.
Importance of Fund Selection
Choosing the right funds is paramount to achieving your financial objectives while managing risk appropriately. Your selection should reflect your investment goals and comfort level with risk. Failing to align your choices with these factors could result in suboptimal returns or exposure to undue risk.
Once you have understood flexi cap funds, you can start your investment with INDmoney in a hassle-free way. You can follow the given steps to start your mutual fund investment journey with us.
Step 1:
Download the INDmoney app and create your free investment account by completing your KYC ( Know Your Customer).
Step 2:
Once your Free investment account is ready, you can either search for a Flexi cap mutual fund or go to the mutual fund section and tap on Flexi cap mutual funds.
Step 3:
Choose a Flexi Cap Mutual Fund by looking at aspects like past returns, volatility, downside capture ratio, AUM, Expense ratios and underlying stocks and sectors.
Step 4:
You can choose to set up SIP in flexi Cap Mutual Funds or even invest as lump sum. Once you are on the individual flexi cap mutual fund page click from the bottom “One-time” for lump sum investment or “SIP” for systematic investment plan.
Step 5:
Choose the amount that you want to invest as SIP or LumpSum.
Step 6:
Set up payments. If you choose to set up SIP in flexi cap mutual funds, you can do a free automatic pay setup via bank mandate or UPI. If you choose to invest in lumpsum (one-time) then you can pay via UPI, netbanking, NEFT or RTGS.
With flexi cap mutual funds, investors can get to invest across the different market capitalisations. It helps in mitigating the risks of your investment, showing you the potential for higher returns. So, if you are among the investors who would prefer more diversification in their investments, you can start your journey by investing in flexi cap mutual funds with INDmoney today.
Some of the best flexi cap mutual funds to invest in 2024 are
Yes, we have an option of Flexi SIP where we can pause and restart the SIP.
We also give an option to edit our SIP anytime. Follow the steps below to change the SIP amount.
Step 1: Go to the SIP section, under the mutual fund dashboard.
Step 2: Open SIP Summary Page and click on manage SIP
Step 3: A bottom sheet will appear, click on edit SIP.
Step 4: An invest page will open, here you can edit your amount.
Note : Maximum Mandate amount should cater the new updated SIP amount.
For Example, if you have started a SIP via UPI and you have created a mandate for Rs 10000. In this case if you edit your SIP amount to 15000, you will receive invalid input.
You can edit the amount between SIP minimum investment amount ( created by AMC ) to maximum mandate amount ( created by user )
Even though there are risks associated with flexi cap mutual funds driven by the market, it is lower compared to other types of mutual funds.
There are no strict constraints or rules associated with investing in flexi cap funds since they offer fund managers complete flexibility, hence the name. So it can be 100% small cap or 100% mid cap or all large cap. However, it must have a minimum of 65% of the total assets invested in equity.
There is no locking period in the case of flexi cap equity funds. However, if you withdraw your investments early, you may have to pay an exit load. This fee varies from one mutual fund to another.
Flexi cap mutual funds are ideal for investors with long-term goals. Hence, investors who are ready to hold their investments for a minimum of five to seven years are ideal for the scheme. It enables them to get their hands on the opportunities of small cap and mid cap stocks, mitigating the risks attached to them.
According to financial planners, flexi cap mutual funds can be a good starting point for beginners, since it provides them with the opportunity to invest across different companies, with low to moderate risks associated with their investments.
You can switch from one mutual fund to another within the same fund house by sending a switching request. However, investors must remember that there can be exit loads and other charges involved in the process. Hence, it is desirable to proceed after being aware of the entire process.
Even though the minimum investment amount required for flexi cap mutual funds varies from fund to fund, it can be as low as Rs. 500. Also, INDmoney does not charge any annual maintenance cost.
Key Differences Between Multi Cap and Flexi Cap Mutual Funds are:
On the basis of Equity Exposure:
Multi-Cap Funds require a minimum of 75% in Equities where is Flexi Cap requires a minimum of 65% in Equities
On the basis of Market Cap Allocation:
As per SEBI, Multi-Cap Funds are required to have a minimum 25% allocation of their portfolio in large-cap, mid-cap, and small-cap companies where as Flexi-Cap Funds are free to invest in any market cap because they have no mandate
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