When it comes to investing, making the right choice is important. Selecting a mutual fund that balances risk and return ensures your portfolio is optimized for varied market conditions.
Flexi cap mutual fund offers this feature to investors in the most unique way. By strategically investing across large, mid, and small-cap stocks, these funds can pivot their strategies to capitalize on the best-performing segments.
But the question is, how do flexi cap mutual funds offer this versatility to investors? Read this guide to learn more. Also, find the top-performing flexi funds in which to invest.
Ways Flexi Funds Offer Versatility to Investors
Flexi cap funds provide versatility through their adaptive investment strategies. The fund invests systematically to help tackle market conditions better.
Here are the ways that it adopts to attain the same.
1. Dynamic Asset Allocation
Flexi-cap mutual funds invest in companies of various sizes, covering small-cap, mid-cap, and large-cap segments. There is no upper limit or investment proposition that must be followed while allocating funds. This flexibility enables fund managers to shift their focus to the market segment, offering the most promising returns and adapting to changes in market dynamics.
2. Diversification
This fund invests in a broad range of sectors and market caps. This way, it spreads risk more effectively. This diversification helps stabilize returns during volatile periods. It also opens up opportunities for capital appreciation from different market areas.
3. Active Management
This is the most important aspect. Fund managers are required to update flexi cap mutual funds regularly. They must analyze market trends and economic indicators to decide on asset allocation. This promptness allows them to tackle any negative market condition and reduce the chances of losses to a great extent.
4. Market Timing
There is no doubt that timing is the most important factor in investment. But flexi funds have a special benefit of this. Managers can increase or decrease exposure to certain stocks based on their market outlook and performance forecasts, attempting to buy low and sell high.
5. Balancing Risk and Reward
Flexi cap mutual funds excel in managing the balance between risk and reward through their investment approach. By having the ability to invest in high-growth small-cap stocks and the stability of large-cap stocks, they aim to maximize returns while mitigating risks. This ensures a smoother return profile over time.
Top Flexi-Cap Mutual Funds to Invest in India
Now that you know how the flexi cap mutual funds offer versatility, let us quickly explore the top 5 flexi funds you can invest in.
| Name of Fund | NAV in ₹
(6/11/24) |
AUM in ₹ Cr. | 1-Year Return | 5-Year Return |
| Parag Parikh Flexi-Cap Fund – Direct Plan (Growth Option) | 86.3781 | 82,441 | 37.79% | 27.29% |
| Motilal Oswal Flexi-Cap Fund – Direct Plan (Growth Option) | 65.4659 | 12,563 | 61.68% | 20.70% |
| HDFC Flexi Cap Fund – Direct Plan-Growth | 2054.6909 | 66,225 | 43.45% | 25.93% |
| Aditya Birla Sun Life Flexi-Cap Fund – Direct Plan (Growth Option) | 1924.1200 | 23,905 | 38.37% | 22.03% |
| Kotak Flexi Cap Fund – Direct Plan-Growth | 85.4530 | 53,844 | 34.43% | 20.17% |
Conclusion
Flexi cap mutual funds are ideal for investors looking for a smart way to manage their investments across different market conditions. These funds stand out due to their investment in large, mid, and small-cap stocks.
This mix ensures better returns and reduced risk while offering opportunities for growth. At the same time, these funds help build investor confidence and deliver consistent returns over time.
Investing in flexi cap mutual funds will offer you competitive returns, even in a volatile market. Just make sure to evaluate all the options before you invest better.
