New Delhi1 minute ago
- copy link
Many people are turning to the stock market to get higher returns than fixed deposits. But if you have less knowledge about the stock market, then you can invest in mutual funds. You can earn good profits by investing in flexi-cap funds of mutual funds. This category has given a return of up to 59% in the last 1 year. Today we are telling you about flexi cap funds.
First of all know what is Flexi-Cap Fund?
Flexi cap is an equity mutual fund that has flexibility in investing. In this, the fund manager invests the investor’s money in small, mid or large cap as per his discretion. In this, the fund manager is not bound as to how much he has to invest in which fund category.
Who should invest in this scheme?
If you want to invest in equity funds but do not want to take high-risk exposure, you can invest in top-rated flexi-cap funds. These funds are also well-diversified in terms of market capitalization. These funds may give lower returns than small and mid-cap funds when the market is stable but these funds are less risky in volatile market conditions. So, if you want a fund that has low risk, you can invest in flexi cap funds.
It is right to invest in them for a long time
Personal finance expert and founder and CEO of Optima Money Managers Pankaj Mathpal says that one should invest in these schemes keeping in mind a time period of at least 5 years. The category may not perform well in the short term but in the long term it can give you better returns.
It would be better to invest through SIP
According to experts, instead of investing money in mutual funds at once, one should invest through Systematic Investment Plan (SIP). Through SIP, you invest a fixed amount every month. This further reduces the risk because it is not much affected by the fluctuations of the market.
These flexi-cap funds have given good returns in the past years
| Name of the scheme | Last 1 Year Return (%) | Last 3 years annual average return (%) | Last 5 years annual average return (%) |
| JM Flexi Cap Fund | 59% | 29% | 29% |
| Bank of India Flexi Cap Fund | 55% | 25% | – |
| Quant Flexi Cap Fund | 52% | 25% | 37% |
| ICICI Pru Flexi Cap Fund | 44% | 23% | – |
| HDFC Flexi Cap Fund | 41% | 26% | 25% |
Source: 5paisa, 18 September 2024
