Mutual funds: Why are flexi-cap funds attracting far higher inflows than multi-cap funds?

There is an extent of similarity between flexi-cap and multi-cap funds. Both categories of mutual funds invest in large, mid and small-cap stocks, but their mandates differ. Despite similar returns, FY26 has so far witnessed vastly different investor response. Why is it so and what could investors do?

Kolkata: Both flexi-cap funds and multi-cap funds invest in large, mid and small-cap stocks and, therefore, offer investors the opportunity to diversify investments with a single exposure. However, the similarity stops here and their investment strategies are different. The managers of flexi-cap funds have the freedom to move from large, medium and small cap stocks without any fetters of fixed allocation, but multi-cap fund managers have to invest in each of large, mid and small-cap stocks 25% of their money. The SEBI Handbook of Statistics........

© News9Live