What are Multicap Funds?

Multicap funds invest across large-cap, mid-cap, and small-cap stocks in calculated ratios as per the SEBI guidelines.

What are Flexi Cap Funds?

Flexi-cap funds have the freedom to invest in any proportion across large-cap, mid-cap, and small-cap stocks based on market conditions.

Investment Mandate

Multicap funds allocate at least 25% each to large-cap, mid-cap, and small-cap stocks. Flexi-cap funds can dynamically shift allocations.

Flexibility

Flexi cap funds provide higher flexibility for fund managers, while multicap funds have more rigid allocation rules.

Risk Level

Multicap funds may have higher risk due to constant small-cap exposure. Flexi-cap funds can reduce risk by focusing more on large caps during volatility.

Return Potential

Multicap funds aim for long-term growth with balanced exposure. Flexi cap funds may outperform by adjusting to market opportunities.

Suitability

Choose multicap funds for stable, diversified exposure, and flexi-cap funds for dynamic asset allocation based on market trends.

Multicap funds assure fixed exposure across market caps, while flexi cap funds adapt to market changes for potentially better returns.

Conclusion

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Difference between Multi-Cap Funds Vs Flexi-Cap Funds