Flexi Cap Funds: An opportunity to provide stability & growth to your portfolio
5 min read . Updated: 07 Feb 2023, 02:21 PM IST
PremiumMirae Asset Flexi Cap Fund, (An open-ended dynamic equity scheme investing across large cap, mid cap, small cap stocks) aims to offer a mix of value and growth stocks at favourable valuations which are spread across market capitalisations. The New Fund Offer (NFO) for the fund closes for subscription on February 17, 2023. Read on to know why you may consider investing in it!
If you are looking to diversify your portfolio in the Capital markets and are unable to select what may be right for you, Flexi cap funds may be considered as one of the good investment options in today’s volatile times as they seek to offer portfolio stability that comes from large cap stocks and also allow you the exposure from growth potential of mid and small cap companies.
(Large Cap: 1st -100th company in terms of full market capitalization. Mid Cap: 101st -250th company in terms of full market capitalization. Small Cap: 251st company onwards in terms of full market capitalization)
By definition, Flexi cap funds are open ended dynamic equity schemes investing across large cap, mid cap, and small cap stocks. The Fund must have at least 65 percent of its total corpus in equity and equity related assets. These mutual funds invest into equities from a range of companies across market capitalizations such as small cap, mid cap and large cap which allows an investor to spread out the risk and lower the impact of volatility.
Flexi cap fund category differs from Multi cap fund category. While Multi Cap Funds are required to invest 25% each in stocks across different market capitalization, Flexi Cap Funds are not restricted to any fixed proportion and seek to select the best performing companies regardless of their market size.
At a time when India’s growth story continues to be resilient, the latest NFO from Mirae Asset Mutual Fund, may help you chart out your investment journey. Mirae Asset Flexi Cap Fund aims to offer the right mix of value and growth stocks at favourable valuations. The selection is not bound by parameters of market cap or industry, allowing the fund manager the flexibility to bet on the best growth stories.
This fund can be considered as one of the optimal options for investors who are in the process of creating or reviewing their core equity portfolios and also for new entrants to the world of stocks, who are seeking exposure across market caps by investing into a single fund.
Those looking to participate in growth ideas across industry lines and market capitalizations, which are not limited by scheme mandates, may also look at this as one of the options for investing. Like most Flexi cap funds, the Mirae Asset Flexi Cap Fund is designed for investors who have the capacity to hold on to their investment for 5 years or more to reap the full benefits and capture the long-term growth curves.
“The India story is still very resilient and investors could experience the benefit of participating in the growth of the Indian economy and its diverse sectors that contribute towards this growth," said Vrijesh Kasera, Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd.
The fund managers use a bottom-up approach where the stocks in the portfolio are selected after a careful analysis of business fundamentals, growth and valuations. There is a conscious effort to keep the focus on a diversified set of growth businesses so that the risk is spread out.
“Through our bottom up stock selection process, we seek to invest in companies with growth potential, which we can hold for a longer term on its merit and we believe such opportunities are available across market cap. These stocks are selected from diverse sectors that may have substantial growth in the coming years," he further added.
Flexi cap funds offer a high degree of flexibility to help you maximise your returns. After you have invested the fund, if the assets underperform, or if there are better opportunities in the market, the fund manager has the choice to re-allocate to different market capitalizations to get better returns. They also offer a large investment horizon to help investors capture the growth curves across different sectors and maximise the gains.
The NFO for the Mirae Asset Flexi Cap Fund closes for subscription on February 17, 2023. The fund will be managed by Vrijesh Kasera, Fund Manager at Mirae Asset Investment Managers (India) Private limited. Click here to know more about this opportunity.
Mirae Asset Flexi Cap Fund is suitable for investors who are seeking*-
- To generate long term appreciation/income.
- Investment in equity and equity related instruments across market capitalization spectrum of large cap, mid cap and small cap companies.
*Investors should consult their financial advisors if they are not clear about the suitability of the product
Investors understand that their principal will be at Very High Risk.
The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields. Views expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst, Mirae Asset Investment Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation with the financial consultant to understand the specific legal, tax or financial implications.
The Product Labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Investors should consult with their mutual fund distributors/ financial advisors to know what flexi cap mutual funds and if it is suitable for their investment needs basis their risk profile.
Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited. For further information about other schemes (product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: This article has been produced on behalf of the brand by HT Brand Studio
