When the market is volatile, it can be challenging to make investment decisions. However, flexi-cap funds have emerged as a popular choice among retail investors. According to the Association of Mutual Funds of India (AMFI), flexi-cap funds received an inflow of ₹8,135 crore in November, making them an attractive option for those looking to navigate market volatility.
Flexi-cap funds are a type of mutual fund that invests in a mix of large, mid, and small-cap stocks across various sectors. This diversification allows fund managers to dynamically adjust the portfolio based on market trends, providing a balance of stability and growth potential.
Flexi-cap funds have consistently performed well over the long term, making them an excellent choice for investors with a five-year horizon. For example, an SIP of ₹10,000 in the Kotak Flexi Cap Fund since 2009 would have grown to ₹76.25 lakhs today, resulting in a CAGR of 15.17%. Other popular flexi-cap funds, such as HDFC Flexi Cap Fund, Quant Flexi Cap Fund, and Parag Parikh Flexi Cap Fund, have also delivered healthy returns.
With their ability to outperform benchmark indices even in challenging market conditions, flexi-cap funds are an attractive option for long-term equity investors. However, it's essential to consult with certified experts before making any investment decisions, as market conditions can change rapidly.
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