Investors' Hangout: Multi cap VS Flexi cap

How are multi-cap and flexi-cap funds different? Although a multi-cap fund and a flexi-cap fund are diversified mutual funds, they're a little different. They're a little different in the sense that with flexi-cap funds, the fund manager is at absolute liberty to invest wherever he wants to. He can invest in large, mid and small caps without any limits. If he thinks that he has to be substantially invested in large caps, he can do that; if he thinks he has to be substantially invested in mid caps or small caps, he can do that. Multi-cap funds, meanwhile, are forced to invest in all of them. They must necessarily have at least a quarter (25 per cent) of their investment in large-, mid- an

This article was originally published on July 28, 2023.