Flexi-cap funds stay 61% invested in large caps, multi-cap funds remain balanced: Report
New Delhi, Aug. 3 -- Over the years, flexi-cap funds have emerged as one of the most popular equity mutual fund categories because of their flexibility to invest across large-, mid-, and small-cap stocks.
However, a "Thinking Aloud" report by Axis Mutual Fund argues that this flexibility has, in practice, resulted in a persistent bias towards large-cap stocks, limiting participation in broader market rallies.
According to the report, multi-cap funds, which are mandated to invest at least 25% each in large-cap, mid-cap, and small-cap stocks, have maintained a more balanced portfolio structure. This has helped them participate more consistently in the broader market rally over the past few years.
According to the report, the key attracti...
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