New Delhi, Aug. 19 -- Flexi-cap funds are equity mutual funds that give fund managers the flexibility to invest across large-cap, mid-cap, and small-cap stocks. However, this flexibility does not mean that all flexi-cap funds maintain a similar portfolio mix. Some funds have a strong tilt towards large-cap stocks, while others allocate a relatively higher share to mid- and small-cap companies.

Under Securities and Exchange Board of India (Sebi) rules, flexi-cap funds are required to invest at least 65% of their assets in equity and equity-related instruments. Beyond this minimum requirement, fund managers can decide how to distribute the portfolio across market-cap segments.

This means two flexi-cap funds can have significantly differen...