All You Need to Know About the Flexi Cap Category – What is Flexi Cap Fund?
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 categorised based on assets they invest in like as equity funds, debt funds, hybrid funds, etc.
Flexicap fund category is one of the categories under equity fund categories, introduced recently by SEBI as a separate category of equity mutual fund scheme.
What is a Flexi-cap fund?
A flexi cap fund investspredominantly in equity and equity related securitiesof 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.
To make it easier for the investors to identify such funds with inherent flexibility to invest across different segments, SEBI has mandated mutual funds to keep the scheme name same as the fund category name. This is common across all the schemes.
Why Invest in FlexiCap Fund?
Flexi Cap funds provide flexibility to the fund managers to invest without staying anchored to prescribed sub limit to a particular capitalisation segment.