In India, a flexi cap fund or a flexi cap mutual fund is a popular investment choice. This is mostly because these funds provide investors with the freedom to engage in businesses across a range of market capitalizations, industries, and regions. These funds give the investor access to a diverse portfolio and the ability to react to market changes. Let's quickly understand the idea!
How a Flexi Cap Fund Works
An equity mutual fund called a flexi cap invests in the stocks of companies with market capitalizations of various sizes, including big, midsize, and small-cap firms. Depending on the state of the market and investor mood, the fund manager has the freedom to change how the fund's assets are distributed. Investors who wish to put money into a diverse portfolio of companies but are skeptical about the market's future prospects can consider these funds.
Why invest in Flexi Cap Mutual Fund?
In essence, a flexi cap mutual fund is a type of mutual fund that invests in stocks of companies of various market capitalizations, sectors, and geographies. The fund manager has the flexibility to allocate the fund's assets across different companies and sectors based on the market conditions and economic outlook. The flexibility offered by the fund makes it an attractive investment option for investors who want to diversify their portfolios across different stocks, sectors, and geographies. This contributes towards greatly reducing the risk of investment by dispersing it into multiple sectors so that one sector's shortcomings are mitigated by the better performance of the other.
A flexi cap is always more lucrative due to diversity, flexibility, expert management, cost-effectiveness, and liquidity. Hence, investments in flexi cap funds may be more profitable than investing in traditional stocks. All investments, however, have a certain amount of risk. Hence, before making any purchases, investors should do a thorough investigation and speak with a financial counselor. These investment choices provide investors with the chance for better returns while reducing risks, since they allow investors to change asset allocation based on market circumstances. Before investing in any mutual fund, it is always crucial to take your investment goals and objectives into account.
What are the best flexi cap funds to invest in?
You can consider one of the top asset management firms in India, PGIM India Asset Management Company Limited, that manages assets worth more than 1.5 lakh crores USD. A wide variety of mutual fund schemes, including equities, debt, hybrid, and ETFs, are offered to investors. The PGIM India Flexi Cap Fund is among the best flexi cap funds that you can consider.
Reasons for choosing PGIM
Here are a few reasons for your choice:
- Diversified Portfolio: The fund makes investments in businesses across a range of market capitalizations, industries, and regions, giving investors access to a diverse portfolio managed by knowledgeable fund managers.
- Consistent Performance: Over the past three years, the fund has consistently exceeded both its benchmark (the Nifty 500 TRI) and the category average, making it a desirable investment choice for long-term investors.
- Low Expense Ratio: With consistently low Expense ratio whilst good performance makes it a lucrative avenue to invest in mutual funds.
- Investor-Friendly Approach: The Company has a customer-focused stance, with an emphasis on investor education and transparency. They enable investors to make knowledgeable investment decisions by regularly updating them on the performance of the fund and the market forecast.
Conclusion
Potential investors who wish to diversify their portfolio across various businesses, industries, and regions might consider flexi cap funds or flexi cap mutual funds as excellent investment options. Before choosing a mutual fund from the many investment alternatives available, investors should think about their investment goals, risk tolerance, and financial aspirations.
