In the current scenario, when commodity prices are expected to rise and flexi-cap funds don't have the option or flexibility to invest in gold or other commodities, would you advise a long-term investor to be invested in flexi cap or multi asset or thematic fund of funds?
I would say that thematic funds are generally avoidable, unless you are very convinced of some theme and you don't have any other investment vehicle. The reason why we invest in a mutual fund is that it is a quick way to diversify. All these funds such as balanced advantage or flexi-cap funds are meant for different investors. Very less experienced or very scared investors should invest in balanced advantage funds. Experienced investors, who can withstand the ups and downs of the market, should invest in a flexi-cap fund, which helps you diversify your investment amongst different market capitalisation stocks.
Moreover, the theory that the commodity prices will go up or come down, all these things are cyclical. The cycle keeps changing and you really don't have control on that. Sometimes these cycles can be longer and different segments of the market or different commodity cycles will flash and you will have a lot to worry about if you start worrying. But I think if you want to have a low maintenance strategy, balanced advantage, flexi-cap funds can really do the job for you.