Flexi cap mutual funds offer the fund managers the freedom to invest across market capitalisations and sectors/themes. It means the fund managers can invest anywhere based on his outlook on the market. Flexi cap schemes are typically recommended to moderate investors to create wealth over a long period of time. Ideally, one should invest in these schemes with an investment horizon of five to seven years.
Tax -saving mutual funds or Equity Linked Savings Schemes (ELSSs) help you to save income tax under Section 80C of the IT Act. You can invest a maximum of Rs 1.5 lakh in ELSSs and claim tax deductions on your investments every financial year. Are you interested?
As per the Sebi mandate, large & mid cap schemes are open-ended equity schemes that will invest a minimum of 35% of total assets in large cap companies, and a minimum of 35% of total assets in mid cap stocks.
According to the Sebi mandate, small cap schemes must invest in companies that are ranked below 250 in terms of market capitalisation. These schemes also will have to invest at least 65% in small cap stocks.
Mutual fund investors are worried about the valuations in the mid cap segment. Mid cap stocks have witnessed a robust rally in the last few months. Investors made handsome returns on their investments in mid cap funds.