Skip to main content

Flexi Cap Funds: How do they work?

How Flexi cap funds work?

Flexi Cap funds invest at least 65% of their scheme assets in equity and equity-linked instruments. The interesting part is that Flexi Cap Funds invest in stocks across market capitalization. 

Before you think of choosing the best Flexi Cap fund, here are a few points that you should keep in mind: 

  1. Flexi Cap Funds help you diversify your portfolio across Large, Mid and Small cap stocks.  
  2. Fund managers may select the allocation of funds and switch across varying sectors and companies, based on their view. 
  3. If a fund manager believes that a specific sector/market cap/stock is no longer attractive, then he/she can rejig the portfolio to any other sector/market cap/stock that has potential. 
  4. You should have an investment time horizon of at least more than three years while investing in Flexi Cap Funds. 

Your gains from Flexi Cap Funds will be taxed just like other equity oriented funds. Short term capital gains arising from investments redeemed before one year are taxed at 15%, while long term capital gains are taxed at 10% on gains exceeding Rs 1 lakh per financial year. 

Consult your financial advisor to understand how Flexi Cap Funds fit into your portfolio. 

Disclaimer: Mutual fund scheme investments are subject to market risks; thoroughly read all offer materials.

Comments

Popular posts from this blog

ELSS Vs Equity Mutual Funds

Newbie investors sometimes need clarification on equity funds and equity-linked savings scheme (ELSS) mutual funds. ELSS is an equity mutual fund with a tax rebate and a lock-in period. Its portfolio is similar to that of any diversified large-cap equity fund. Before making an investment decision, read everything about tax-saving mutual funds vs other equity mutual funds.  What Is an Equity Mutual Fund? Equity mutual funds invest a large part of their corpus in the stocks of companies on the lists of Indian and overseas stock exchanges. They invest across multiple market cap segments and sectors. The investment goal is long-term capital growth and appreciation. The returns are subject to risk since they are market-linked. So, you may witness short-term volatility. To ride through shorter-term market ups and downs, it's best to stay invested for 5-7 years to make the most of your investments. When you redeem your investment in an equity fund, the asset management company (AMC) levie...

Maximise Your Returns: 7 Suggestions for Investing in Gold ETFs

Purchasing actual gold is a popular investment option in India. However, several things could be improved in buying, storing, and selling gold. Gold ETF funds are another option for investors wishing to diversify their portfolio with gold. A Gold Exchange Traded Fund, or Gold ETF for short, is a one-of-a-kind hybrid of a stock and a mutual fund. This is an open-ended mutual fund where the price is determined by the price of gold in real-time. Unlike mutual funds, however, gold ETF funds can be bought and sold on the stock market. On the other hand, Gold mutual funds can only be purchased or redeemed at the conclusion of each trading day based on their Net Asset Value. (NAV). Unlike direct investments in physical gold, gold ETFs, or ETFs that trade in the commodity gold, allow investors to capitalise on market opportunities in real-time. At the same time, they enable investors to invest in one of the most sought-after and desired commodities: gold. How to Invest in Gold ETFs Gold Excha...

ELSS Funds: Building a Diversified Portfolio for Long-Term Growth

  Are you looking for a smart investment option that offers long-term growth potential and tax benefits? ELSS (Equity Linked Savings Scheme) funds present a optimal opportunity for investors to enjoy the best of both worlds. Not only do they have the potential to grow your wealth over time, but they also provide valuable tax-saving advantages. We will start by understanding ELSS funds, uncover their tax-saving benefits, and discuss how they can play a vital role in building a diversified portfolio for long-term growth. So, let's dive in and discover the exciting world of ELSS funds! Understanding ELSS Funds: ELSS funds are a category of mutual funds that primarily invest in equity markets. These investments are meant to generate long-term growth in value and come with tax benefits under Section 80C of the Income Tax Act under the old tax regime. Unlike traditional tax-saving instruments such as Fixed Deposits and Public Provident Funds, ELSS funds have a lower lock-in period of...