Flexicap mutual funds are open-ended equity oriented mutual funds which invests a minimum of 65% of its assets in equity stocks. But stocks from which market capitalisation? This is what makes Flexicap funds interesting. Flexicap mutual funds are dynamically managed. This means that the fund manager has the freedom to invest across large, mid and small-cap stocks dynamically.
Stocks To Riches By Parag Parikh Pdf Free Downloadl
A lot of investors believe that Flexicap and Multicap mutual funds are one and the same. But this is not true. A Flexicap mutual fund has the freedom to invest in stocks across market capitalisation. So, the fund manager can choose to invest 70-80% of the corpus in large-cap stocks during market downturns. But multi-cap mutual funds cannot do so. Multi-cap mutual funds have to compulsorily invest 25% each in large, mid and small-cap stocks.
Notice the allocation of Parag Parikh Flexi cap fund. It invests only 3.27% in small cap and 14.39% in mid cap stocks. This is because the fund manager has the freedom to dynamically manage the portfolio. But the fund manager of a multi-cap mutual fund cannot do this. He cannot invest less than 25% in mid or small-cap stocks even if the market conditions warrant this action. 2ff7e9595c
Commentaires