Flexi Cap Fund

A Flexi Cap Fund is a type of investment option that allows you to put your money into a mix of different-sized companies. This means flexi-cap funds invest in large-cap, mid-cap, and small-cap all at once. The special thing about a Flexi Cap Fund is that it can change its investment strategy based on market trends.

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Best Flexi Cap Funds in India

Investment Plans Fund Size 1-year return
Best 1 Year Return Funds
Parag Parikh Flexi Cap Fund ₹40,760 Crs 15.31%
Quant Flexi Cap Fund ₹1,909 Crs 15.21%
PGIM India Flexi Cap Fund ₹5,881 Crs 10.27%
Edelweiss Flexi Cap Fund ₹1,295 Crs 13.15%
UTI Flexi Cap Fund ₹25,612 Crs 10.20%
Best 3 Years Return Funds
Parag Parikh Flexi Cap Fund ₹40,760 Crs 19.03%
Quant Flexi Cap Fund ₹1,909 Crs 24.88%
PGIM India Flexi Cap Fund ₹5,881 Crs 14.38%
Edelweiss Flexi Cap Fund ₹1,295 Crs 18.09%
UTI Flexi Cap Fund ₹25,612 Crs 9.74%
HDFC Flexi Cap Fund ₹40,760 Crs 24.88%
Best 5 Years Return Funds
Quant Flexi Cap Fund ₹1,909 Crs 29.95%
JM Flexicap Fund ₹545 Crs 23.53%
Parag Parikh Flexi Cap Fund ₹40,760 Crs 22.80%
HDFC Flexi Cap Fund ₹38,668 Crs 22.79%
Franklin India Flexi Cap Fund ₹11,749 Crs 21.39%

What is a Flexi Cap Fund?

A Flexi Cap Fund is a type of mutual fund that provides investors with the flexibility to invest in stocks across different market capitalizations, including large-cap, mid-cap, and small-cap companies. This category of funds allows fund managers to dynamically adjust the portfolio composition based on prevailing market conditions and opportunities. 

The adaptability enables investors to potentially benefit from various market scenarios, making Flexi Cap Funds a versatile option for those seeking a balanced and diversified investment approach. By not being restricted to a specific market segment, these funds aim to capture growth potential across the entire spectrum of the stock market.

What are the Key Features of Flexi Cap Funds?

The key features of flexi cap funds are as follows:

  • Diversification: Flexi cap funds invest in a wide range of companies across sectors. This diversification helps to reduce risk and improve returns over the long term.

  • Growth potential: Flexi cap funds have the potential to generate higher returns than other types of equity funds, such as large-cap funds.

  • Flexibility: Flexi cap funds are not restricted to investing in companies of a predetermined market capitalization. This means that the fund manager can invest in companies of all sizes, from large-cap to small-cap. This gives the fund manager greater flexibility to choose the best investment opportunities, regardless of the company's size.

What is the Performance of Flexi Cap Fund – Fund for All Seasons?

Flexi-cap funds are like the all-in-one tool in the world of investments. They're designed to be adaptable, offering a range of options across Large Cap, Mid-Cap, and Small Cap Funds. This flexibility gives investors a strategic edge, especially during unpredictable market phases. It's like having multiple arrows in your quiver, ready to tackle any financial terrain.

Below are the returns of the 3 categories that combine and form the Flexi Cap Fund: 

flexicap-marketwinners flexicap-marketwinners

New HDFC Life NFO 

HDFC Life Flexi Cap Fund is a New Fund Offering (NFO) from HDFC Life. It belongs to the flexi-cap fund category, which grants it the freedom to invest across various market capitalization levels, encompassing large-cap, mid-cap, and small-cap segments. This adaptability empowers the fund manager to select investments based on their potential for returns, without being constrained by the size of the companies.

The fund employs a dynamic asset allocation approach, meaning it adjusts the allocation between equity and debt in response to the prevailing market conditions. This strategy aims to minimize risk and optimize returns over an extended investment horizon.

Rising Income hdfc-nfo-banner

Who Should Invest in the Best Flexi Cap Funds in 2023?

Here are some of the investors who should consider investing in the best flexi cap funds in 2023:

  • Investors with a long-term investment horizon: Flexi cap funds are equity funds, and equity markets can be volatile in the short term. However, over the long term, equity markets have historically trended upwards. Therefore, flexi cap funds are best suited for investors who have a long-term investment horizon of at least 5 years.

  • Investors who can tolerate moderate to high risk: Flexi cap funds are riskier than debt funds or fixed-income investments. However, they have the potential to generate higher returns over the long term. Therefore, flexi cap funds are best suited for investors who can tolerate moderate to high risk.

  • Investors who are looking for a diversified equity investment: Flexi cap funds invest in a wide range of companies across sectors and market capitalizations. This diversification helps to reduce risk and improve returns over the long term. Therefore, flexi cap funds are a good option for investors who are looking for a diversified equity investment.

How are Flexi Cap Funds Taxed in India?

Flexi cap mutual funds^^ are taxed as equity funds in India. This means that the capital gains from flexi cap funds are taxed at different rates depending on the holding period.

  • Short-term capital gains (STCG): If you sell your flexi cap fund units within 12 months of purchase, the capital gain will be classified as short-term capital gain (STCG). STCG is taxed at a flat rate of 15%.

  • Long-term capital gains (LTCG): If you sell your flexi cap fund units after 12 months of purchase, the capital gain will be classified as long-term capital gain (LTCG). LTCG from equity funds up to Rs. 1 lakh in a financial year is exempt from tax. Beyond Rs. 1 lakh, LTCG from equity funds is taxed at a flat rate of 10%.

HDFC Life Flexi Cap Fund Taxation 

HDFC Life Flexi Cap Fund stands out with its added advantages of section 80C and 10(10D) benefits, setting it apart from other flexi cap funds. This unique feature not only offers potential for capital growth but also provides tax-saving benefits, making it a comprehensive investment choice. With HDFC Life Flexi Cap, you're not only building your wealth but also securing your financial future with smart tax planning.

What is the Difference between Flexi Cap Funds and Multi Cap Mutual Funds? 

  • Flexi Cap Funds and Multi Cap Funds are both equity funds that diversify investments across large-cap, mid-cap, and small-cap stocks.

  • The key difference lies in their investment mandate and portfolio construction.

  • Flexi Cap Funds have a flexible mandate, allowing them to invest across various market capitalizations.

  • Multi Cap Funds are required to allocate at least 25% of their assets in large-cap, mid-cap, and small-cap stocks each.

  • Flexi Cap Funds typically have a higher risk profile but offer the potential for higher returns.

  • Multi Cap Funds offer a more balanced risk-return profile.

  • Investors should choose the fund that aligns with their specific investment objectives, risk tolerance, and investment horizon.

How to Invest in Flexi Cap Funds?

To invest in Flexi Cap Fund from Policybazaar, follow these steps:

  • Log in to your existing Policybazaar account or create a new one.

  • Fill in your name, city, age, and contact numbers to assess personalized benefits.

  • Choose plans from HDFC Life that are available.

  • Click "Get Details" for more information on the Flexi Cap Fund.

  • Review the plan details and click "Proceed" to continue.

  • Enter the investment amount and select payment mode.

  • Provide KYC details for regulatory compliance.

  • Complete the payment process for confirmation of your purchase.

FAQ's

  • What are the best Flexi Cap Funds in 2023?

    Below mentioned are the funds that are market heroes as of 2023:

    -HDFC Life Capital Guarantee Solution

    -HDFC Life Click2Wealth

    -HDFC Life Click2Invest

    -HDFC Life 200% Capital Guarantee Income Solution

    -HDFC Sampoorn Nivesh

  • Is it possible to withdraw my investment in Flexi Cap mutual funds at any time?

    Yes, investors have the flexibility to redeem their investment in Flexi Cap mutual funds whenever they choose. It's worth noting that the redemption process may entail an exit load, the specific details of which vary from one fund to another.
  • Can I set up a Systematic Investment Plan (SIP) in Flexi Cap Funds?

    Yes, you can initiate an SIP in Flexi Cap Mutual Funds. Policybazaar offers the flexibility to set up SIPs.
  • Are Flexi Cap funds considered a good investment choice?

    Yes, Flexi Cap mutual funds present a solid investment opportunity, particularly for investors with long-term goals who seek diversification across various market capitalizations.
  • Is it possible to transfer from one Flexi Cap Mutual Fund to another?

    Yes, investors have the option to switch from one Flexi Cap Mutual Fund to another. Nevertheless, it's important to be aware that this process may involve exit loads and other associated fees.
  • What returns can I expect from Flexi Cap?

    On average, Flexi Cap Funds have provided annual returns of 16.19% over the past five years. Their annualized returns for the three-year and ten-year periods are 24.57% and 18.06% respectively.

*Past 5 Year annualised returns as on 01-04-2024
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

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