Why flexicap mutual funds are panacea for balanced risks-to-returns?

economictimes.indiatimes.com:

equity markets through mutual funds, investors can choose from a wide variety of schemes like the smallcap, midcap fund or largecap fund, or choose a combination of the same under the flexicap fund.
The capital market regulator has defined the top 100 companies by market value as largecap companies, the next 150 companies as midcap companies, and beyond the top 250 companies by market value are called smallcap companies. An investor can allocate funds across these different market cap companies either by choosing the amount to be allocated to each fund category individually or leaving the decision to a fund manager who would allocate across different categories of market caps dynamically depending on various factors like current market conditions, future growth outlook and relative valuations.

It appears a large number of investors prefer to leave the judgment of allocation across the different market caps to the fund manager, as evidenced by the fact that the flexicap category is the largest category among all equity mutual fund schemes today commanding almost close to Rs 3.5 lakh crores worth of assets, which is larger than any category of mutual fund schemes.

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One must understand that liquidity profile, the volatility in returns and the factors that drive valuations in each category are distinctly different and require a certain amount of judicious allocation to arrive at an optimal risk reward balance for