Many people are turning to the stock market to get higher returns on their fixed deposits. But if you have less knowledge about stock market, you can invest in mutual funds. You can earn good profits by investing in flexible capitalization mutual fund funds. This category has given returns of up to 59% over the past year. Today we are talking to you about flexi cap funds.
First of all, do you know what a flexi-cap fund is? Flexi Cap is an equity mutual fund that provides flexibility in making investments. In this, the fund manager invests the investor’s money according to his choice in small, mid or large caps. The fund manager is not bound by how much he must invest in which category of funds.
Who should invest in this project? If you want to invest in equity funds but do not want to take high risks, you can invest in top-rated flexi-cap funds. These funds are also well diversified by market capitalization. These funds may offer lower returns than small- and mid-cap funds when the market is stable, but these funds are less risky in volatile market conditions. So, if you want a fund with less risk, you can invest in flexi cap funds.
It’s good to invest in it for a long time Pankaj Mathpal, personal finance expert and founder and CEO of Optima Money Managers, says one should invest in these programs keeping in mind a period of at least 5 years. The categories may not perform well in the short term, but in the long term, they can give you better returns.
It would be better to invest via SIP According to experts, instead of investing money in one go in mutual funds, one should invest through a systematic investment plan i.e. SIP. With SIP, you invest a fixed amount every month. This further reduces risk, as it is little affected by market fluctuations.