asset allocation based on their market outlook and investment objectives. For instance, if the fund manager perceives overvaluation in large-cap stocks, they have the flexibility to reduce the allocation to large-cap stocks and increase the allocation to mid-cap or small-cap stocks.
The adaptability inherent in flexi-cap funds enables them to seize growth opportunities across the entire market spectrum, potentially delivering superior risk-adjusted returns compared to funds concentrated on a single market capitalization category. However, it’s worth noting that flexi-cap funds may also encounter increased volatility owing to their exposure to various market capitalizations.
Some flexi-cap funds have indeed performed well in the past five to 10 years, thus, allowing investors to benefit from varying market capitalizations and frequent market low down in stocks belonging to various sectors. The following table illustrates some of the best-performing flexicap funds along with their returns, thus, underlining how not-so-ambitious investors have benefited from putting their money in these funds.Name of the fund10-year returns (in %)Quant Flexi Cap Fund23.58Parag Parikh Flexi Cap Fund19.89JM Flexi Cap Fund19.86Franklin India Flexi Cap Fund17.89Aditya Birla Sun Life Flexi Cap Fund17.85HDFC Flexi Cap Fund17.77SBI Flexi Cap Fund17.72Kotak Flexi Cap Fund17.66DSP Flexi Cap Fund17.61HSBC Flexi Cap Fund16.09Canara Robeco Flexi Cap Fund115.88 Investing in the flexicap fund category is driven by the concept of avoiding the necessity to make precise decisions regarding market capitalization.
These funds allocate investments across companies of varying sizes, eliminating the need for specific market segment choices. This diversification
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