According to AMFI data for July, multi-cap funds witnessed net inflows worth Rs 2,500 crore, while flexi-cap funds saw outflows to the tune of Rs 932 crore.
"After three years of high returns, investors need to be cautious. They need to have a five-year view and should only invest in a staggered manner using the SIP route," said Abhay Mathure, a Mumbai-based mutual fund distributor.
Over the last three years, the Nifty Microcap 250 Index has delivered 58 percent on an annualised basis. But this segment comes with its own set of risks and challenges.
Edelweiss Multi Asset Allocation Fund will invest your money across various asset classes, like equity, debt, real-estate investment trusts, infrastructure trusts, and so on. The NFO opens June 5.
Discipline and being true to its label have helped the fund in the past. However, going forward, its large size and SEBI restrictions on investment in overseas stocks could be challenges.