Flexi-Cap funds: Your path to portfolio flexibility

Flexi-cap mutual funds offer investors the flexibility to adapt their portfolios to changing market conditions, potentially leading to superior performance over time.

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These funds allocate at least 65% of their assets to equities, with no restrictions on the upper or lower limits of exposure to different market caps.

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The appeal of flexi-cap funds lies in their ability to provide diversification across various market capitalisations, reducing risk exposure.

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Fund managers can adjust portfolio allocations for better risk-adjusted returns, making these funds suitable for long-term investors comfortable with some return volatility.

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High-performing 10-year flexi-cap funds include Quant Flexi Cap Fund, Aditya Birla Sun Life Flexi Cap Fund, HDFC Flexi Cap Fund, DSP Flexi Cap Fund, and Canara Robeco Flexi Cap Fund.

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The number of flexi-cap funds in your portfolio should depend on your risk tolerance and investment capacity, whether through lump-sum investments or systematic investment plans.

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