Multi cap vs Flexi cap funds investing explained in 60 seconds
Multi cap vs Flexi cap funds investing explained
“Multi cap” and “Flexi cap” mutual funds are trending!
Because both mutual funds give you exposure to large cap, mid cap and small cap stocks in one single mutual fund.
But what’s the difference and which one is better for you?
Mutli cap mutual funds must invest:
-minimum 25% in large cap stocks,
-minimum 25% in mid cap stocks and
-minimum 25% in small cap stocks
So if you want almost EQUAL exposure to the “entire stock market” in one single mutual fund, “Multi Cap” is your friend.
While in case of Flexi cap mutual fund, fund manager can invest in:
-large cap stocks,
-mid cap stocks and
-small cap stocks in ANY PROPORTION (No minimum allocation)
as long as the TOTAL investment in stocks is minimum 65%.
So if you want your funds to be moved freely as per market conditions, Flexi cap mutual fund is a better choice.
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