All You Need to Know About the Flexi Cap Category - UTI Mutual Funds

Published On: 08-Jun-2021

SEBI has defined different categories of mutual funds scheme, wherein the guidelines provide a broader mandate to the mutual funds to design the investment portfolio. Such funds are broadly categorized based on assets they invest in like as equity funds, debt funds, hybrid funds, etc.  

What is a Flexi-cap fund?

A flexi cap fund invests predominantly in equity and equity related securities of companies in a flexible manner across the market capitalization spectrum. Since no single market capitalization segment has always outperformed the markets, such flexibility to invest across different market segments enables the fund manager to aim for better returns. Flexi-cap funds have to put a minimum of 65% of total assets in equity and equity-related securities. 

These funds give your investments an exposure to equity shares of large, mid and small companies across the sectors. Since these funds typically invests in the best performing companies which are market leaders in their domain, follow a robust business models, healthy balance sheets etc., and also with a focus of investing across the market cap segments, they offer both growth and value to investors while also striking a balance between risk and volatility in a single portfolio.

Why Invest in FlexiCap Fund?

Flexi Cap Funds are designed to pick out growth opportunities in a rising market and reduce the down trend in a falling market. These funds are also a good option for investor who would want to participate in the full market cycle over a medium to long term. Flexi Cap funds provide flexibility to the fund managers to invest without staying anchored to prescribed sub limit to a particular capitalization segment. 

Who should invest in Flexi Cap Funds?

  • Investors who wish to build their core equity portfolio holding, that invests in quality businesses that has potential to generate economic value for a long period of time
  • Investors in search of a fund which brings disciplined approach to the portfolio
  • Ideal for investors with moderate risk-profile who want to stay invested for 5 to 7 years to meet their long-term financial goal