Multi-cap funds and flexi-cap funds are both equity mutual funds that invest in companies of different sizes. However, there are some key differences between the two types of funds: Multi-cap funds Multi-cap funds are required to have a minimum allocation of 25% each to large-cap, mid-cap, and small-cap stocks. This means that they have a more balanced portfolio than other types of equity funds. Multi-cap funds are typically less risky than other types of equity funds, as they have a diversified portfolio. However, they also have lower potential returns than other types of equity funds. Flexi-cap funds Flexi-cap funds are not bound by any specific market capitalisation allocation. This means that the fund manager has the flexibility to invest in companies of any size, depending on their outlook on the market. Flexi-cap funds can be riskier than multi-cap funds, as they can have a higher exposure to mid-cap and small-cap stocks. However, they also have the potential to generate hig...
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