Which is Better: Flexi-cap or multi-cap mutual funds?

WHICH IS BETTER: FLEXI-CAP OR MULTI-CAP MUTUAL FUNDS?

Flexi vs Multi-Cap confusion stressing you out? You're not alone! Both are popular equity mutual funds, but with key differences. Let's break it down. Written by - Prathyush Gupta Designed by- Prince Kumar Photo Credit: Pexels

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[{"selector":"#anim-d50ccb8a-a32a-4b57-b968-39e8cd256f38","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c2d3ed63-e75e-4fe0-b163-c7b9656c8fc8","keyframes":{"transform":["translate3d(105.81718%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8eb7ec45-8fd1-45fd-8ad4-858defccb384","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d05f91b2-141b-4a33-8d94-bce8b54aa4ca","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The minimum equity investment requirement is 65% for flexi cap funds and 75% for multi-cap funds Photo Credit: Pexels

[{"selector":"#anim-3361ea55-b0d7-43a2-9f8c-a1c23ae6cc15","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-db3cf3d5-893f-4104-bdfe-4d06e8588658","keyframes":{"transform":["translate3d(106.37119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7d93519e-6512-46e8-aa4d-e00ca6e24c98","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-35c61a0e-3660-4d20-81a9-6f189d91f2d8","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Flexi-cap funds have the freedom to invest across large, mid, and small-cap companies. Photo Credit: Pexels

[{"selector":"#anim-91becc61-92e0-4144-8d29-dd7fd81dabc7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4b5b1b8c-0068-497b-ae1f-517d9358927c","keyframes":{"transform":["translate3d(106.37119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d9ba2907-87aa-4435-b0dd-5b52e5dfb030","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9b924bcf-ab0e-4286-b6ff-2797eb9ab3de","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4dd3ed43-66dd-4267-927e-0be96e0ce2fb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Multi-cap funds invest at least 25% each in large, mid, and small-cap companies for a diversified portfolio. Photo Credit: Pexels

[{"selector":"#anim-007c4327-d6ac-4263-9c79-dbf1941ea3df","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7cba47d0-465c-448f-b8ba-7de93ef6b578","keyframes":{"transform":["translate3d(106.37119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d2624a6b-ed52-4adf-a132-1de0d9883aab","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-08cd8689-763a-4883-9b5c-890d23fc118e","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0f27c7e8-65b7-42e5-b98f-35f42dccf3d6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Due to higher small-cap allocation, multi-cap funds experience more ups and downs compared to flexi-cap. Photo Credit: Pexels

[{"selector":"#anim-fe46ae78-f958-43aa-81df-3db7946bfcef","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-10013cdf-ca1a-4cb0-a03d-7f1eaa2d20e2","keyframes":{"transform":["translate3d(106.37119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d32395b9-aef4-45a6-9411-bfc1f42251e3","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-194f1d87-41e4-42aa-868a-c1993f6d3657","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Multi-cap funds have a chance for higher returns because of exposure to small-cap stocks with high growth potential, but beware of the volatility. Photo Credit: Pexels

[{"selector":"#anim-0fdf17fa-41a0-4098-8b4a-32c6fb213148","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eee5433b-82d3-4ed0-b02a-486515d3b21c","keyframes":{"transform":["translate3d(106.37119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8c948ef0-6b9c-47be-ac97-66408e18a6c3","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dd7aea73-361e-4606-85ee-6b014f9a4b12","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Looking at recent data, multi-cap funds slightly outperform flexi-cap funds. Photo Credit: Pexels

[{"selector":"#anim-350533f8-1e86-4ce0-b233-65962da4c70e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c49dfe22-893e-4a52-8a80-f987ec782613","keyframes":{"transform":["translate3d(106.37119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2bd3927b-bfab-4c43-842e-a201881e85d8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-89ee0689-279b-4d8c-a94b-cf35f14864f7","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Flexi-cap suits those seeking balance and potentially lower volatility. Multi-cap caters to investors comfortable with volatility for potentially higher returns. Photo Credit: Pexels

[{"selector":"#anim-1db30a70-e6e6-4ad2-8bdb-1d5963c8fd04","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-549809e0-3996-4070-baaa-67ca5efbc513","keyframes":{"transform":["translate3d(106.37119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8af5c9a8-0a3a-415d-9cae-2ccee2030d9f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1502f5cc-dc05-4ab1-b569-e872f0e9fdbe","keyframes":{"transform":["translate3d(-128.99999%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] This post is for informational purposes only. We recommend consulting a SEBI-registered investment advisor before investing in any mutual fund. Learn more