By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Investment SimplifiedInvestment Simplified
  • Tax
    • Popular Searches
    • What is Form 16?
    • Trademark Registration Fees
    • TDS Full Form
    • Ad Valorem Tax
    • How to Save Tax?
  • Aadhaar
    • Popular Searches
    • How to Book Aadhaar Card Appointment?
    • E-Aadhaar And It’s Benefits
    • What is a Masked Aadhaar?
    • ESign Aadhaar: A Complete Guide
    • Aadhaar Card Address Change
  • EPF
    • Popular Searches
    • EPFO Member Portal – Login, Registration
    • EPFO Establishment Search
    • Guide to Your EPFO Member Login
    • EPF Interest Rate
    • What Is UAN Activation?
  • PAN Card
    • Popular Searches
    • What is a PAN Card
    • NSDL PAN Card
    • UTI PAN
    • e-PAN Card
    • PAN Card Apply
  • Banking
    • Banks
      • Popular Searches
      • State Bank of India (SBI)
      • Bank of Baroda (BOB)
      • Canara Bank
      • Indian Bank
      • Bank of India (BOI)
    • Bank Timings
      • Popular Searches
      • Bank of Baroda Timings
      • IDBI Bank Timings
      • Union Bank Timings
      • Karnataka Bank Timings
      • Central Bank of India Timings
      • Canara Bank Timings
    • Mini Statement
      • Popular Searches
      • Axis Bank Mini Statement
      • HDFC Mini Statement
      • Bank of Baroda Mini Statement
      • Union Bank of India Mini Statement
      • SBI Mini Statement
    • Balance Enquiry
      • Popular Searches
      • Canara Bank Balance Enquiry by SMS, Missed Call, Netbanking
      • SBI Balance Enquiry
      • Union Bank of India Balance Enquiry Number
      • BOB Balance Enquiry
      • PNB Balance Check Number – Enquiry by SMS, Missed Call, Netbanking
    • NEFT
      • Popular Searches
      • HDFC NEFT
      • SBI NEFT
      • Axis Bank NEFT
      • ICICI Bank NEFT
      • Canara Bank NEFT
    • Net Banking
      • Popular Searches
      • HDFC Bank Net Banking
      • SBI Net Banking
      • ICICI Net Banking
      • Axis Bank Net Banking
      • IOB Net Banking
    • Customer Care
      • Popular Searches
      • Central Bank of India Customer Care Number
      • Bank of Baroda Customer Care – Missed Call and Toll Free Number
      • Bank of Maharashtra Customer Care
      • Punjab National Bank Customer Care Number – PNB Grievance Redressal
      • IOB Customer Care Number
    • UPI
      • Popular Searches
      • BHIM
      • Google Pay
      • BHIM SBI Pay
      • Union Bank UPI
      • HDFC UPI
    • Debit Card
      • Popular Searches
      • SBI Debit Card
      • HDFC Debit Card
      • PNB Debit Card
      • Axis Bank Debit Card
      • Kotak Debit Card
    • RTGS
      • Popular Searches
      • RTGS Process
      • SBI RTGS
      • ICICI Bank RTGS Form
      • Axis Bank RTGS Form
      • HDFC RTGS Form
    • IMPS
      • Popular Searches
      • IMPS Limit
      • IMPS vs. NEFT
      • IMPS vs. NEFT vs. RTGS
      • MMID
    • Cheque
      • Popular Searches
      • Types of Cheques
      • Blank Cheque – Meaning, Issuance and How to Write
      • Cancelled Cheque – How to Write a Cancelled Cheque?
      • Account Payee Cheque
      • What is a Banker’s Cheque
    • Bank Holidays
      • Popular Searches
      • Bank Holidays in June 2023
      • Bank Holidays in July 2023
      • Bank Holidays in August 2023
      • Bank Holidays in September 2023
      • Bank Holidays in October 2023
    • Mobile Banking
      • Popular Searches
      • SBI Mobile Banking
      • HDFC Mobile Banking
      • Bank of Baroda Mobile Banking
      • Indian Bank Mobile Banking
      • Canara Bank Mobile Banking
    • Passbook
      • Popular Searches
      • SBI Passbook
      • Union Bank Passbook
      • BOB Passbook
      • HDFC Passbook
      • Axis Bank Passbook
    • Demand Draft
      • Popular Searches
      • Demand Draft Validity
      • Demand Draft Form
      • Demand Draft Charges
      • Demand Draft Clearing Time
      • Demand Draft vs Pay Order
    • Bank Statement
      • SBI Bank Statement
      • HDFC Bank Statement
      • ICICI Bank Statement
      • Axis Bank Statement
      • BOB Bank Statement
    • Bank Charges
      • Axis Bank Charges
      • HDFC Bank Charges
      • ICICI Bank Charges
      • Union Bank Charges
      • Bank of Baroda Charges
  • Savings Account
    • Popular Searches
    • What is a savings account
    • SBI Savings Account
    • Bank of Baroda Saving Account
    • Bank of Maharashtra Saving Account
    • Central Bank of India Saving Account
  • Insurance
    • Life Insurance
      • What Should Be the Ideal Policy Period for Term Insurance?
      • Why Should Term Insurance Be Your First Investment?
      • Best Ways To Avoid Life Insurance Claim Rejection
      • 5-step process to shortlist the best term insurance for yourself
      • Why Should You Buy an Insurance Policy Online?
    • General Insurance
    • Car Insurance
    • Travel Insurance
  • Fixed Deposit
    • What is Fixed Deposit
      • Axis Bank FD
      • Bank of Maharashtra FD
      • Bank of Baroda Fixed Deposit
    • FD Calculator
      • SBI FD Calculator
      • HDFC Bank FD Calculator
      • Axis Bank FD Calculator
      • ICICI Bank FD Calculator
      • Canara Bank FD Calculator
    • Credit Card against Fixed Deposit
    • Fixed Deposit Income Tax Exemption
    • Loan against Fixed Deposits
    • Bandhan Bank FD Rates
    • Axis Bank FD Rates 2023
    • Bank of Baroda FD Rates
  • Resources
    • Pension & Retirement
    • Web Stories
    • About Us
    • Contact
Reading: Flexi Cap Funds
Share
Investment SimplifiedInvestment Simplified
Search
  • Tax
    • Popular Searches
    • What is Form 16?
    • Trademark Registration Fees
    • TDS Full Form
    • Ad Valorem Tax
    • How to Save Tax?
  • Aadhaar
    • Popular Searches
    • How to Book Aadhaar Card Appointment?
    • E-Aadhaar And It’s Benefits
    • What is a Masked Aadhaar?
    • ESign Aadhaar: A Complete Guide
    • Aadhaar Card Address Change
  • EPF
    • Popular Searches
    • EPFO Member Portal – Login, Registration
    • EPFO Establishment Search
    • Guide to Your EPFO Member Login
    • EPF Interest Rate
    • What Is UAN Activation?
  • PAN Card
    • Popular Searches
    • What is a PAN Card
    • NSDL PAN Card
    • UTI PAN
    • e-PAN Card
    • PAN Card Apply
  • Banking
    • Banks
      • Popular Searches
      • State Bank of India (SBI)
      • Bank of Baroda (BOB)
      • Canara Bank
      • Indian Bank
      • Bank of India (BOI)
    • Bank Timings
      • Popular Searches
      • Bank of Baroda Timings
      • IDBI Bank Timings
      • Union Bank Timings
      • Karnataka Bank Timings
      • Central Bank of India Timings
      • Canara Bank Timings
    • Mini Statement
      • Popular Searches
      • Axis Bank Mini Statement
      • HDFC Mini Statement
      • Bank of Baroda Mini Statement
      • Union Bank of India Mini Statement
      • SBI Mini Statement
    • Balance Enquiry
      • Popular Searches
      • Canara Bank Balance Enquiry by SMS, Missed Call, Netbanking
      • SBI Balance Enquiry
      • Union Bank of India Balance Enquiry Number
      • BOB Balance Enquiry
      • PNB Balance Check Number – Enquiry by SMS, Missed Call, Netbanking
    • NEFT
      • Popular Searches
      • HDFC NEFT
      • SBI NEFT
      • Axis Bank NEFT
      • ICICI Bank NEFT
      • Canara Bank NEFT
    • Net Banking
      • Popular Searches
      • HDFC Bank Net Banking
      • SBI Net Banking
      • ICICI Net Banking
      • Axis Bank Net Banking
      • IOB Net Banking
    • Customer Care
      • Popular Searches
      • Central Bank of India Customer Care Number
      • Bank of Baroda Customer Care – Missed Call and Toll Free Number
      • Bank of Maharashtra Customer Care
      • Punjab National Bank Customer Care Number – PNB Grievance Redressal
      • IOB Customer Care Number
    • UPI
      • Popular Searches
      • BHIM
      • Google Pay
      • BHIM SBI Pay
      • Union Bank UPI
      • HDFC UPI
    • Debit Card
      • Popular Searches
      • SBI Debit Card
      • HDFC Debit Card
      • PNB Debit Card
      • Axis Bank Debit Card
      • Kotak Debit Card
    • RTGS
      • Popular Searches
      • RTGS Process
      • SBI RTGS
      • ICICI Bank RTGS Form
      • Axis Bank RTGS Form
      • HDFC RTGS Form
    • IMPS
      • Popular Searches
      • IMPS Limit
      • IMPS vs. NEFT
      • IMPS vs. NEFT vs. RTGS
      • MMID
    • Cheque
      • Popular Searches
      • Types of Cheques
      • Blank Cheque – Meaning, Issuance and How to Write
      • Cancelled Cheque – How to Write a Cancelled Cheque?
      • Account Payee Cheque
      • What is a Banker’s Cheque
    • Bank Holidays
      • Popular Searches
      • Bank Holidays in June 2023
      • Bank Holidays in July 2023
      • Bank Holidays in August 2023
      • Bank Holidays in September 2023
      • Bank Holidays in October 2023
    • Mobile Banking
      • Popular Searches
      • SBI Mobile Banking
      • HDFC Mobile Banking
      • Bank of Baroda Mobile Banking
      • Indian Bank Mobile Banking
      • Canara Bank Mobile Banking
    • Passbook
      • Popular Searches
      • SBI Passbook
      • Union Bank Passbook
      • BOB Passbook
      • HDFC Passbook
      • Axis Bank Passbook
    • Demand Draft
      • Popular Searches
      • Demand Draft Validity
      • Demand Draft Form
      • Demand Draft Charges
      • Demand Draft Clearing Time
      • Demand Draft vs Pay Order
    • Bank Statement
      • SBI Bank Statement
      • HDFC Bank Statement
      • ICICI Bank Statement
      • Axis Bank Statement
      • BOB Bank Statement
    • Bank Charges
      • Axis Bank Charges
      • HDFC Bank Charges
      • ICICI Bank Charges
      • Union Bank Charges
      • Bank of Baroda Charges
  • Savings Account
    • Popular Searches
    • What is a savings account
    • SBI Savings Account
    • Bank of Baroda Saving Account
    • Bank of Maharashtra Saving Account
    • Central Bank of India Saving Account
  • Insurance
    • Life Insurance
      • What Should Be the Ideal Policy Period for Term Insurance?
      • Why Should Term Insurance Be Your First Investment?
      • Best Ways To Avoid Life Insurance Claim Rejection
      • 5-step process to shortlist the best term insurance for yourself
      • Why Should You Buy an Insurance Policy Online?
    • General Insurance
    • Car Insurance
    • Travel Insurance
  • Fixed Deposit
    • What is Fixed Deposit
      • Axis Bank FD
      • Bank of Maharashtra FD
      • Bank of Baroda Fixed Deposit
    • FD Calculator
      • SBI FD Calculator
      • HDFC Bank FD Calculator
      • Axis Bank FD Calculator
      • ICICI Bank FD Calculator
      • Canara Bank FD Calculator
    • Credit Card against Fixed Deposit
    • Fixed Deposit Income Tax Exemption
    • Loan against Fixed Deposits
    • Bandhan Bank FD Rates
    • Axis Bank FD Rates 2023
    • Bank of Baroda FD Rates
  • Resources
    • Pension & Retirement
    • Web Stories
    • About Us
    • Contact
Investment Simplified > Mutual Funds > Flexi Cap Funds
Mutual Funds

Flexi Cap Funds

Monika Mohan
Last updated: 2022/12/27 at 3:20 PM
Monika Mohan Published June 1, 2022 6 Min Read
Share
Best Flexi Cap Funds in India, 2023Flexi Cap Funds: How do they work?Benefits of Investing in Flexi Cap FundsFeatures of Flexi Cap FundsFlexi Cap Funds: Things to ConsiderWho Should Invest in Flexi Cap Funds?Taxation of Investing in Flexi Cap FundsFlexi Cap Fund

Flexi Cap Fund is a mutual fund that allows investors to diversify their portfolios by investing in companies of all sizes and sectors. Offering diverse investment choices to the fund managers enables them to invest in stocks and shares that will generate higher income.

Let’s learn about the Flexi Cap Fund meaning, features and benefits along with the best flexi cap funds in India.

Best Flexi Cap Funds in India, 2023

The following are some of the best flexi cap mutual funds currently available in India:

Flexi Cap FundsRisk InvolvedNet Assets (Cr.)
HDFC Focused 30 Direct FundVery High3,000
HDFC Flexi Cap Direct FundVery High32,894
Franklin Ind. Focused Equity Direct FundVery High8,656
Mahindra Mnulife Focused Equity Yjn. DirectVery High656
Quant Flexi Cap Direct FundVery High825

Flexi Cap Funds: How do they work?

A flexi cap fund enables investors to diversify their investment holdings among businesses with various market capitalizations, reducing volatility and risk. They are also known as multi-cap funds or diversified equity funds. Flexi-cap funds can invest in any firm regardless of the company’s market capitalization, unlike mid-cap or small-cap funds that concentrate on equities based on market capitalization. Regardless of their size, the fund manager evaluates each company’s growth prospects and distributes the funds among various industries and businesses.

Benefits of Investing in Flexi Cap Funds

Like large-cap funds, small-cap and mid-cap funds, Flexi cap offers numerous opportunities and great returns. Previously, there was a multi-cap fund, where a 25-25-25 rule was followed, meaning at least 25% will be invested in large-cap, medium-cap, and small-cap funds. 

Later, SEBI introduced the Flexi Cap Fund category, where investors were allowed to invest without any limit. Here are the top benefits you will get to enjoy upon investing in Flexi cap funds- 

Make your portfolio diverse 

We have already understood what is flexi cap funds, and how you can invest in different stocks/ shares regardless of the company’s market capitalization. If you invest in the flexi cap funds, you will get to diversify your portfolio and can handle the tumultuous journey of the equity market in the longer run. 

Beat inflation 

In the longer run, equity funds have a high potential to beat inflation. You will invest your money in a company now that the company has the money to run its operations and generate more revenue and business. 

Higher returns

Now fund managers have the freedom to invest in any company regardless of its capital, and they can invest in stocks that offer higher returns. It can be a small-cap company, a large-cap or a medium cap. Also, there’s no limit on how much assets can be allocated to a particular fund, unlike multi-cap funds.

Features of Flexi Cap Funds

The following are the defining features of Flexi Cap Mutual Funds:

  • Enterprises of any market size, including large-cap, mid-cap, and small-cap companies, may be invested in through Flexi-Cap Funds
  • Contrary to multi-cap funds, there is no entry-level investment requirement
  • Fund manager has more freedom to investigate investment opportunities

Flexi Cap Funds: Things to Consider

Making a decision to invest in any mutual fund requires a lot of consideration. It would be best if you weigh various factors before deciding, or you may lose the money drastically. Here are some of the points you should consider before you plan to invest in a flexi cap fund or any fund. 

Past performance 

You should check the previous performance of the fund you are planning to invest in to ensure it has been consistent throughout. However, many fund managers take a conservative approach where they invest major assets in the large-cap companies and allocate the rest of the assets in the mid-cap mutual funds and small-cap mutual funds. 

Returns 

You also need to know how many returns each fund gives to the investors. This will give you an idea about the returns you will receive upon investment in flexi cap funds. Though this is your fund manager’s share of work, you need to keep a tab on it to know that you are not making a blunder. 

Investment period 

It’s important to determine how many years you are planning to invest. In an ideal scenario, you should invest for at least 5 years as the flexi cap fund tends to have a higher allocation towards the small-cap and mid-cap stocks. 

Who Should Invest in Flexi Cap Funds?

A flexi cap fund is ideal for you if you are a:

  • first time investor
  • conservative investors
  • looking for long-term investment
  • looking for both mid cap and small cap exposure

Taxation of Investing in Flexi Cap Funds

In mutual funds, the returns you gain are called as capital gains and are classified into short term capital gains and long term capital gains. The tax will be determined depending on your investment period.

Short Term Capital Gain Tax or STCG Tax: 15% tax applicable if you sell your investments within 1 year

Long Term Capital Gain Tax or LTCG Tax: Capital gains up to Rs 1 lakh from investments of more than 1 year are exempt from tax. After Rs 1 lakh, there is 10% tax applicable.

Flexi Cap Fund

Should I invest in a flexi cap fund?

Suppose you are planning to invest in the large-cap fund and the small and medium cap to ensure you get high returns and low risk, similar to a conservative investor. In that case, a flexi cap investment is the most suitable option for you.

Is Flexi Cap fund good?

Flexi-cap funds are a solid strategy because, in tumultuous stock markets, large-caps have superior liquidity and stability than mid-caps and small-caps. Large-cap firms are more prevalent in these funds due to their established status and better risk-adjusted return.

Which Flexi fund is best?

HDFC Focused 30 Direct Fund, HDFC Flexi Cap and Franklin India Focused Equity Direct Fund are some of the top flexi fund options available in India.

Where does Flexi Cap fund invest?

Flexi-cap funds are equity funds that allocate at least 65% of their assets to equities and securities with an equity component. They can invest across market capitalization without any restrictions, and they are allowed to have exposure to large-, mid-, and small-cap stocks.

Also Read: Post Office RD Interest Rate

Share This Article
Facebook Twitter Whatsapp Whatsapp Email Copy Link Print
By Monika Mohan
Monika Mohan is a writing enthusiast who has luckily turned her passion into profession. For the greens, she has an established foot in the personal finance sector and likes to put forth complex topics in an easy-to-understand manner, minus the jargons. Outside the penny lane, it’s all about poetry, mountains and single-malts.
Previous Article large cap mutual fund Best Large Cap Mutual Funds in 2023
Next Article ulip What is ULIP or Unit Linked Insurance Plan?
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Searches
  • What Is Mutual Fund
  • What Are Contra Funds
  • What Are Money Market Mutual Fund
  • How To Invest In SIP
  • Types Of Mutual Funds
  • SIP Vs Mutual Funds
  • ELSS Tax Saving
  • Flexi Cap Fund
  • What Is SIP
  • What Are Tax Saver Mutual Funds
  • Best Debt Mutual Fund
  • Mid Cap Mutual Funds
  • Best Mutual Funds
  • What Is A Liquid Fund
  • Large Cap Fund
  • Best Sip To Invest
  • Equity Mutual Fund Types
  • What Is Equity Mutual Fund
  • What Is Tax Saver Sip
  • What Is ELSS Fund

Social Media

Social Media
Facebook
YouTube
Instagram
Twitter
Linkedin

Recent Post

Karnataka Bank Passbook
Karnataka Bank Passbook
Banking
DCB Bank Passbook
DCB Bank Passbook
Banking
City Union Bank Passbook
City Union Bank Passbook
Banking
Bank of Maharashtra Passbook
Bank of Maharashtra Passbook
Banking

You Might also Like

ICICI NEFT Timings

ICICI NEFT Timings

To transfer funds online or at the bank using the ICICI NEFT…

Read More
Professional Tax

How to Pay Professional Tax Online?

Let us consider that you are a salaried employee. Every month you…

Read More
PNB Mobile Banking

PNB Mobile Banking

Punjab National Bank (PNB) offers mobile banking service to its customers to…

Read More
IMPS Timings

IMPS Timings

An instant inter-bank electronic way of transferring funds, IMPS is one of…

Read More

We are here to make your investment journey simple by delivering content on financial topics in plain English.

Categories

  • Tax
  • Cryptocurrency
  • Aadhaar
  • Mutual Funds
  • Banking
  • General Insurance
  • Pension & Retirement
  • Car Insurance
  • Travel Insurance

Quick Link

  • About Us
  • Contact
  • Terms & Conditions
  • Privacy Policy
Social Media
Facebook
YouTube
Instagram
Twitter
Linkedin

We are here to make your investment journey simple by delivering content on financial topics in plain English.

Categories

  • Tax
  • Cryptocurrency
  • Aadhar
  • Mutual Funds
  • General Insurance
  • Pension & Retirement
  • Car Insurance
  • Travel Insurance

Quick Link

  • About Us
  • Contact
  • Terms & Conditions
  • Privacy Policy

Social Media

Copyright © 2023 Investment Simplified. All rights reserved.

Welcome Back!

Sign in to your account

Lost your password?