Flexi cap mutual funds have gained popularity among investors due to their ability to invest across the market capitalization spectrum. This means that the fund manager can invest in companies of any size, depending on the prevailing market conditions. As a result, these funds provide a good balance of growth and stability, making them ideal for long-term investors. In this blog, we will discuss some of the best flexi cap mutual funds to invest in 2021.
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Axis Flexi Cap Fund:
- This fund has consistently outperformed its benchmark index and peers in the past few years. The fund manager invests in a mix of large, mid, and small-cap stocks, aiming to generate long-term capital appreciation. The fund’s top holdings include HDFC Bank, Reliance Industries, and ICICI Bank.
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Parag Parikh Flexi Cap Fund:
- This fund has a unique investment philosophy of investing in both Indian and foreign stocks. The fund manager aims to generate long-term capital appreciation by investing in a mix of large, mid, and small-cap stocks. The fund’s top holdings include Alphabet Inc, HDFC Bank, and Bajaj Finance.
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Kotak Flexi Cap Fund:
- This fund has a track record of delivering consistent returns over the years. The fund manager aims to invest in high-quality companies with a strong competitive advantage and sustainable business models. The fund’s top holdings include HDFC Bank, ICICI Bank, and Infosys.
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SBI Flexicap Fund:
- This fund has a diversified portfolio with investments across various sectors and market capitalizations. The fund manager follows a bottom-up approach and invests in companies with strong fundamentals and growth potential. The fund’s top holdings include HDFC Bank, ICICI Bank, and Reliance Industries.
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Aditya Birla Sun Life Flexi Cap Fund:
- This fund has a well-diversified portfolio with a mix of large, mid, and small-cap stocks. The fund manager follows a research-driven approach and invests in companies with strong growth potential and competitive advantage. The fund’s top holdings include HDFC Bank, Infosys, and ICICI Bank.
Flexi cap mutual funds are a popular investment option for investors looking to diversify their portfolio across various market capitalizations. These funds have the flexibility to invest in companies of any size, depending on market conditions, and are managed by experienced fund managers who use their expertise to pick the best stocks for the fund.
Let’s take a closer look at some of the best flexi cap mutual funds mentioned earlier:
- Axis Flexi Cap Fund: This fund has consistently delivered high returns over the years, making it a popular choice among investors. The fund’s investment philosophy focuses on investing in high-quality companies with strong fundamentals and growth potential. The fund manager uses a bottom-up approach to identify such companies and has a well-diversified portfolio with investments across various sectors.
- Parag Parikh Flexi Cap Fund: This fund has a unique investment philosophy of investing in both Indian and foreign stocks. The fund manager believes that investing in global stocks can provide diversification benefits and generate higher returns. The fund has a well-diversified portfolio with investments across various sectors and has consistently delivered high returns over the years.
- Kotak Flexi Cap Fund: This fund has a track record of delivering consistent returns over the years and has a well-diversified portfolio with investments across various sectors. The fund manager follows a research-driven approach and invests in companies with strong fundamentals and growth potential. The fund has a mix of large, mid, and small-cap stocks, providing investors with a good balance of growth and stability.
- SBI Flexicap Fund: This fund has a diversified portfolio with investments across various market capitalizations and sectors. The fund manager follows a bottom-up approach and invests in companies with strong fundamentals and growth potential. The fund has consistently delivered high returns over the years and is a popular choice among investors.
- Aditya Birla Sun Life Flexi Cap Fund: This fund has a well-diversified portfolio with investments across various sectors and market capitalizations. The fund manager follows a research-driven approach and invests in companies with strong growth potential and competitive advantage. The fund has consistently delivered high returns over the years and is a good option for investors looking for a mix of growth and stability.
Conclusion
In conclusion, investing in flexi cap mutual funds can provide investors with a good balance of growth and stability. It is important to choose a fund that has a proven track record of delivering consistent returns over the years and is managed by experienced fund managers. Before investing in any mutual fund, it is advisable to consult a financial advisor to understand your risk appetite and investment goals.
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Frequently Asked Questions (FAQs)
Q: What are flexi cap mutual funds? A: Flexi cap mutual funds are mutual funds that invest in companies across various market capitalizations. This means that the fund manager can invest in companies of any size, depending on market conditions. Flexi cap funds provide investors with a good balance of growth and stability.
Q: What is the investment philosophy of flexi cap mutual funds? A: The investment philosophy of flexi cap mutual funds is to invest in high-quality companies with strong fundamentals and growth potential. The fund managers use a bottom-up approach to identify such companies and aim to deliver long-term capital appreciation to investors.
Q: Are flexi cap mutual funds suitable for all investors? A: Flexi cap mutual funds are suitable for investors who are looking for a balanced portfolio of growth and stability. These funds are ideal for long-term investors who are willing to take on moderate to high-risk to achieve their investment goals.
Q: How do I choose a flexi cap mutual fund to invest in? A: To choose a flexi cap mutual fund to invest in, investors should consider factors such as the fund’s track record, investment philosophy, risk profile, and fees. Investors should also consult a financial advisor to understand their risk appetite and investment goals.
Q: How are the returns on flexi cap mutual funds taxed? A: The returns on flexi cap mutual funds are taxed as per the investor’s income tax slab. Short-term capital gains (investments held for less than one year) are taxed at a higher rate than long-term capital gains (investments held for more than one year).
Q: What is the difference between flexi cap mutual funds and multi-cap mutual funds? A: Flexi cap mutual funds and multi-cap mutual funds both invest in companies across various market capitalizations. However, flexi cap funds have no restrictions on the proportion of investments in each market cap, while multi-cap funds must invest at least 25% of their assets in each market cap.
Q: Can I switch from one flexi cap mutual fund to another? A: Yes, investors can switch from one flexi cap mutual fund to another. However, investors should consider the exit load, taxes, and other charges associated with the switch. It is advisable to consult a financial advisor before making any investment decisions.
