Flexi-Cap vs. Multi-Cap: Which Mutual Fund is Right for Your Portfolio?
Share Market
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News18•28-01-2026, 16:47
Flexi-Cap vs. Multi-Cap: Which Mutual Fund is Right for Your Portfolio?
- •Flexi-Cap and Multi-Cap mutual funds offer diversified investment across large, mid, and small-cap stocks, addressing the challenge of picking the right stocks.
- •Flexi-Cap funds grant fund managers complete freedom to adjust allocations across market caps based on market conditions and valuations.
- •Multi-Cap funds have a fixed allocation rule, mandating at least 25% investment in large-cap, mid-cap, and small-cap stocks each, ensuring balanced exposure.
- •While Multi-Cap funds have shown better average performance over 3 and 5 years, some individual Flexi-Cap funds have delivered higher returns.
- •Both are equity-based, high-risk investments suitable for a long-term horizon (5+ years); choice depends on preference for fund manager freedom (Flexi-Cap) or fixed allocation (Multi-Cap).
Why It Matters: Choose Flexi-Cap for fund manager flexibility or Multi-Cap for fixed, balanced exposure across market caps.
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