A Brief About Flexi Cap Fund-Growth
Flexi Cap Funds are a new type of mutual fund that came into the picture when the cap got imposed on the multi-cap fund. In this fund category, the fund manager has complete freedom to invest in the Large Cap, Mid Cap, and Small Cap segments. As a result, In this fund category, the fund manager has complete freedom to invest in the Large Cap, Mid Cap, and Small Cap segments like Vanguard small cap index fund. Flexi Cap Investment distributes your funds across market capitalization. It means that fund managers have complete discretion over limiting or increasing exposure to a specific market cap sector based on how they expect that segment to perform in the future.
And this selection is based on the potential for growth, historical performance, and the hazards these companies and sectors entail. A Flexi Cap Fund growth often comprises a portfolio of firms with skilled management and development potential.
What Differentiates Flexi-Cap Funds Growth?
Flexi-cap Funds have grown in popularity among investors in recent months due to their ability to diversify an investor’s investment portfolio across market capitalizations. These are dynamic, open-ended equity funds that must invest at least 65 percent of their total assets in equities and equity-related securities. By investing in such funds, investors can lower their risks and volatility. The closest thing to a Flexi-cap fund is a multi-cap fund. The latter invests evenly in large-cap, mid-cap, and small-cap stocks — 25% each. It must maintain equal exposure across the three regardless of market conditions, unlike Flexi-cap funds, which can invest across the kinds in whatever proportion the fund manager considers appropriate. As a result, when building a portfolio, a Flexi-cap fund provides the most diverse selection of stocks. The Flexi-cap category’s only restriction is that up to 65 percent of assets must be invested in Financial Planning shares. Some funds in this category are also able to participate in overseas equities.
Things One Should Know Before Investing in Flexi Cap Fund-Growth
- According to SEBI’s most recent risk-grading regulations, people who invest in this fund should know that an Axis Flexi Cap Fund-Growth – Regular Plan falls into the Very High-risk category.
- The annualized returns for the last 3 years are 18.48%.
- The advised investment horizon for Axis Flexi Cap Fund – Regular Plan is more than three years.
Who Should Consider Flexi-Cap Funds?
The global pandemic caused a significant recession in the Indian economy in 2020. It has hampered the potential for expansion of medium and small-sized firms. Furthermore, many of these corporations have harmed corporate political problems and are concerned about the stability of their organization. As a result, the Flexi cap fund may be overly exposed to large-cap funds. However, if the market favors mid-size and small-cap funds, Flexi cap fund allocations may increase. Small-cap stocks have higher volatility, which can raise portfolio risk. Thereby, to lower portfolio risk, investors must look at large caps, which can offset some of the volatility. Thus, Flexi cap funds are suitable for investors with a moderate to high-risk tolerance and an investment of five years.
Why Should You Seek for Flexi-Cap Funds?
The key reasons for someone seeking a Flexi-cap fund are the flexibility it offers. The fund manager can customize the portfolio in response to changing market valuations and macroeconomic conditions. If the fund manager believes that the broader markets are better positioned than large-caps, they can change the portfolio allocation to mid-caps and small-caps to take advantage of the upswing in these segments. Due to this, Flexi-Cap Funds have become a viable option for investors to consider.
How Can you Explore Flexi-Cap Funds?
If you want to learn more about Flexi-Cap Funds, you may use the Axis Mutual Fund app to access the Axis Flexi-Cap Fund Growth option. The Axis Flexi-Cap Fund is a dynamic, open-ended equity strategy that invests in large-cap, mid-cap, and small-cap firms. The fund would invest in 25 stress-tested efficient companies from India and worldwide at an efficient price while maintaining an efficient portfolio turnover and cost to build long-term wealth for investors.
Want to Know More About the Axis Mutal Fund App?
If you want to invest in Axis Flexi-cap fund growth, you can use their Axis mutual fund app, an official app provided by the company for investors. In this app, there are a lot of features like Risk Profile, where you can see your investment plans and notify you about certain risks—a personalized dashboard, where you can see your portfolio and actionable alerts. You can also do SIP transactions in just 5 minutes; it comes with a SIP calculator. There are various schemes and filters to choose from for your investment. Axis mutual fund app also provides account statements as per your request, Capital Gain Statement, and STT letter. This app also allows you to redeem your liquid funds as fast as possible.
