Flexi-cap funds give a diversified portfolio for each Investor
Flexi-capital funds are those funds which allow investors to diversify their portfolio across companies of different market capitalization spectrums,i.e.largecap, mid-cap or large-cap stocks.
Unlike other capital funds where the focus of investment lies on the greater return on companies’ market capitalization value, Flexi-cap invests in companies irrespective of the company’s market capitalization.
Flexi-cap funds offer a diversified portfolio it is not restricted to investment in a particular company for years, the fund manager can choose to access their fund allocation and can switch between different companies and sectors depending on the companies’ performance over time that is expected for maximum gains if invested. Since the investments made are based on ongoing values the fund can get a higher return from one company and lesser from another thus this fund balances the risk and return very well or can say it gives a steady return even during a declining market stocks rate scenario when company stocks don’t fruit better.
A flexible-cap fund has to invest 65% of its assets in equity and equity-related instruments and can shift dynamically to other companies unlike large-cap, mid-cap or small-cap where the threshold for equity among companies is fixed.
Investing in a Flexi-cap fund can be beneficial only if it is done for a minimum of 5 years.
Some salient features of Tata Flexi-cap are:
- Fund Name – Tata Flexi-cap fund
- Fund House – Tata Mutual Fund
- Launch Date – September 06,2018
- Objective – To generate capital appreciation by investing in diversified equity & equity-related instruments of well-researched and growth-oriented companies.
- Type – Open-ended
- Investment cap – all market capitals(large-cap, mid-cap or small-cap depending upon expected maximum returns)
- Assets under management(AUM) – Rs 2,079 crore(as of May 31, 2022)
- Minimum investment – Rs 5,000
- Minimum withdrawal – Rs 500
- Minimum SIP Investment – Rs 150
- Management of funding – Fund manager
- Fund Manager – SonamUdasi(since 17 august 2018)
Abhinav Sharma (since 01 November 2019)
- Expense – 2.13%
- Turnover – 59.05%
- Trailing return over 3 years – 10.44 (regular plan)
- Benchmark – NIFTY 500 TRI
- Exit Load – for units over 12% of the investment if withdrawn before 1 year.
- Number of stocks in the portfolio – 48
- Top stock holding companies(as of May 31, 2022) – ICICI Bank, Reliance industry, HDFC Bank, Infosys, TCS, AmbujaCement, PolycabIndia, Titan, Asian mid-cap, AxisBank, Kotak Mahindra Bank.Havells and Matrimony.com, etc
- Riskometer – Very high but volatile.
- Return Grade – Below average
- Good for Investors looking for at least 3-4 years of investments for high returns.
If you know which is one of the best mutual funds started by ICICI. Do read this topic- ICICI BLUECHIP FUND
From Hemant K Midha