Flexi-cap funds are the funds that invest across large-cap, mid-cap and small-cap stocks. Investment in these funds allows the investors to diversify their portfolio across companies of different market capitalisation and mitigate risk. Till July 31, 2023, there were 33 flexi-cap funds. As per Association of Mutual Funds in India (AMFI) data for July, flexi-cap funds saw outflows to the tune of Rs 932 crore. Here s a quick comparison between HDFC Flexi Cap and JM Flexi Cap.
The Indian equity market appears to be upbeat at this moment, as short to mid-term volatility will continue to contribute to output reversal, and during this time a long-term equity investor s mutual fund portfolio should include diversified equity funds, therefore flexi cap funds are worth considering.