Flexi Cap vs Large Cap: Which is the Best Long-Term Choice?

Published: 01st July 2024 By: Value Research

Why Equity Mutual Funds Are Essential

[{"selector":"#anim-7143c208-4d43-41d7-bdda-a52df08baed5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e0d2ab17-27ce-444d-bb7e-eb7a91a671d7","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-60d6dd09-8422-4510-9e50-51a71b3c33d6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(11.097291284345925%, 0, 0) translate(14.534883720930235%, -14.534883475938257%) scale(1.2906976744186047)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-252f1cac-7fa2-4239-a1df-c8821beb5c52","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4dc27e2b-3eb2-4d43-95af-a257cccc833b","keyframes":{"transform":["translate3d(-116.29393%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Equity-oriented mutual funds should make up a sizable portion of your portfolio to build wealth.

What Are Large-Cap Funds?

[{"selector":"#anim-03f6f7dd-80cf-4464-b897-f67863f9b70f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(0%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-b4e8d97c-327e-4eef-b846-07ebe7d985de","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-65d7ffae-e5a1-45fa-8458-f132dc86ce5a","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-79163541-59c5-469b-b7f4-550b1deafe76","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6dd0f591-4d0c-40f0-b1a9-6bc89779192b","keyframes":{"transform":["translate3d(-115.33547%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Large-cap funds invest in companies with large market capitalizations, providing access to big companies.

What Are Flexi-Cap Funds?

[{"selector":"#anim-d9f63730-3e20-47ef-bb44-042163ff07c1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(0%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-e680f43b-5e12-4c07-9b9b-4d04a03c72fd","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-96811724-7dd3-43d0-8ed8-6860d98fcb67","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-88b229c2-74b6-4095-bc50-ffb36608a0f8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7e1a3513-89ca-45ee-91a5-fb1f85ee58c3","keyframes":{"transform":["translate3d(-115.33547%, 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 diversify across different market capitalizations and sectors, offering broader exposure.

Understanding Tax Implications

[{"selector":"#anim-1052480f-faeb-4d20-a0e3-779f6b98e6ac [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(21.726190073939737%, 0, 0) translate(14.880952380952383%, -14.880952115372846%) scale(1.2976190476190477)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-f8276225-c1e2-44ba-a62e-c3b7ef20c450","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a373d776-afbd-4631-af7b-9451a97047b9","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d0559fa2-3908-41e4-b009-fe52f4d5aebe","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-08d22d85-928d-4204-97c6-e7d5431f6e58","keyframes":{"transform":["translate3d(-115.65495%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Both large-cap and flexi-cap funds have similar tax structures for short-term and long-term gains.

Suitable Investors for Each Fund

[{"selector":"#anim-2d9d500b-734c-4292-81fb-9f7a92f79348 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(0%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-6b5d8bdf-6b81-44ce-9c06-dd51d4fbbcaa","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-87671be6-b89f-4bf3-a37f-c4b5fe449441","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ca839108-f911-480a-bc7e-e6653025b94d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6ef22288-7605-460a-b5a2-a646a0e8227d","keyframes":{"transform":["translate3d(-115.65495%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Large-cap funds are ideal for those focused on large companies; flexi-cap funds suit those seeking diversified investments.

Why Flexi-Cap Funds Stand Out

[{"selector":"#anim-fd58622e-18c0-46e1-8306-01ea1c2611d7 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(0%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-4a2e4944-1ff0-4cec-b797-c8d691722ad5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2fef5ea8-e513-45f7-9192-b110678c4b28","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c83e6af8-449b-46a7-921f-c1f9574e5daa","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c347152c-cb71-41ce-b73f-685783945ee2","keyframes":{"transform":["translate3d(-115.65495%, 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 offer better diversification and flexibility, allowing fund managers to shift allocations among different market caps.

Important Factors to Keep in Mind

[{"selector":"#anim-8651240e-fe53-487e-bedb-5df7de9edd8c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(13.121542825888405%, 0, 0) translate(17.361111111111114%, -17.36111063226319%) scale(1.3472222222222223)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-9b99c14f-985a-4137-9369-0fa3e9c9ead5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9f41e367-b99f-4ba0-a65c-f4f20d8eb454","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-de739248-b13b-4cf9-bcf7-af88da6d75a0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5fecd8d6-c0d0-4fb3-94d1-a3aa4a297935","keyframes":{"transform":["translate3d(-115.65495%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Invest for over five years, align with your goals, risk tolerance, and investment horizon. Thorough research is crucial.

Maximizing Returns with SIP

[{"selector":"#anim-dafa11c0-4caa-4507-b282-e54f5a7210d6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(0%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-0dcb6bab-4867-432f-b3cc-48fb17d5d7cc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b15bea9d-b8e9-4e83-a929-0aeb66021972","keyframes":{"transform":["translate3d(-114.63415%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6dcc8163-ec5d-4385-9880-960a2648f327","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3f808fb0-52fc-4426-badc-219e5f3134b8","keyframes":{"transform":["translate3d(-115.65495%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Use a systematic investment plan (SIP) to mitigate risk and average out costs. Flexi-cap funds offer flexibility and potential for better returns.

Other Webstories

[{"selector":"#anim-5fb223d0-fe22-4d58-8885-49338cd2646e","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b22366c3-761d-469d-9afc-11e0b2044f56","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-28a14e1c-b3f1-45ec-9e7c-ce214746dd89","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-938f9ee4-550f-48e1-8a65-263180cefbb4","keyframes":{"opacity":[0,1]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-69311b38-dfb3-4ff2-8734-d3f591a8ad53","keyframes":{"transform":["translate3d(-194.52735%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-76010d16-855a-44a2-afff-e4ff3942c4fe","keyframes":{"opacity":[0,1]},"delay":800,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3b829f42-71d8-40ef-ab98-2fb6a1877d6f","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":800,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-50b84cc5-5c00-49e2-a9dd-ce57aa7a2355","keyframes":{"opacity":[0,1]},"delay":900,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f9ba617a-b5f7-4149-84b0-3b3be24213f2","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9d2c0665-bf07-4d2c-8b05-6617a8ed57be","keyframes":{"transform":["translate3d(-194.52735%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7b6c6f87-0734-4eae-b9b5-fb065681b99d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6c41e59a-fe74-4c8c-8a07-787de121fcb4","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8b58a783-a5cb-4352-9c39-160831d70f1a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0abcaed9-f388-4de6-8095-4c37eaccbabd","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Click Here