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Flexi cap schemes a better option than large cap peers

According to Bloomberg data, the Nifty Midcap 150 index currently trades at a price-earnings (P/E) multiple of 34.5 compared with its five-year average P/E of 33.7. The Nifty 50 index trades at the five-year average multiple of 24.6.

flexicap schemes: Investors looking for large cap exposure may consider Flexi-cap schemes

According to Bloomberg data, the Nifty Midcap 150 index currently trades at a price-earnings (P/E) multiple of 34.5 compared with its five-year average P/E of 33.7. The Nifty 50 index trades at the five-year average multiple of 24.6.

Why do financial planners suggest flexi cap funds to investors?

As per regulatory guidelines, a flexi cap fund is an open-ended, dynamic equity mutual fund scheme. In this category the fund manager can choose to invest across companies of any market capitalisation be it large-, mid- or small-cap companies without restrictions.

Which equity fund categories should you invest in?

There are close to 40 mutual fund categories, but you must not invest in all of them. Even the 12 equity categories are too much for any single investor. The variety is there to suit different taste palettes. You must choose your category depending on what you want your money to do.

11 best flexi cap mutual fund schemes with highest returns in past ten years

An increasing urge to invest in flexi-cap funds considering the increasing frequency of market volatilities and the resulting economic turmoil that has relegated many large-cap companies to the backfoot while propelling the mid-sized and small-sized companies to lead the stock market from the front.

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