Dominated by Flexi Cap Fund, the stock market has been moving in a range with Sensex touching a high of 53,290 and Nifty at 15,962 since months. The volatility in the market seems to be at its peak. This is a situation where mutual fund investors face difficulties in making investment decisions. On such occasions large cap, small cap and mid cap all indices are doing together. In such market conditions, Flexi Cap Fund is emerging as a great investment choice for investors looking to invest in Mutual Funds.
This category of mutual funds is suitable for investors at the moment where no market cap category is showing any clear trend. Mutual funds in this category invest at least 65 per cent in house equities. Under this scheme, investments are made in all three caps, i.e. large, mid and small cap.
As per SEBI’s rules related to mutual fund investment, this category has to invest at least 25 per cent in each large cap, mid cap and small cap. Flexi Cap An equity mutual fund has the flexibility to invest, due to which it can reduce the risk associated with its investment by adopting a diversification investment strategy. Which attracts investors the most.
In the last financial year, PGIM India Flexi Cap Fund generated 74.63 per cent, UTI Flexi Cap Fund 68.18 per cent, Aditya Birla Sun Life Flexi Cap Fund 60.60 per cent, Parag Parikh Flexi Cap Fund 57.94 per cent and Canera Rebeco 53 per cent. Has given 89 percent returns.
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