Flexi cap vs multi cap: The continuing ups and downs in the market have increased the concern of investors, and they are looking for an option that can handle the market volatility and give better returns in the long term. Experts believe that at present, Flexi Cap and Multi Cap Funds can be an attractive option for investors due to their flexibility and diversification. In December, Flexi Funds had an investment of Rs 4,730.71 crore. At the same time, an investment of Rs 3,075.11 crore came in multi -cap funds. In the last five years, Flexi Cap Funds have given investors a return of 19-29%. At the same time, multi-cap funds have given a return of 18-25%. Except for some basic differences, both funds have a lot of similarity. The return of both is also almost the same. In such a situation, which of the two fans is much better? Let’s understand…
Top-5 Flexi Cap Funds: Investors’ money has been double-triple
Talking about the performance of Flexi Cap Funds, the top-5 Flexi Cap Funds have given investors a return of around 19-28% in the last five years. Among them, Quant Flexi Cap Fund Scheme has given the highest returns of 28.58%. In this scheme, if someone had invested a lamp of Rs 1 lakh five years ago, then today its value is more than Rs 3.51 lakh.
Let us understand through mutual fund calculations that if an investor had invested 1 lakh in these top-5 Flexi Cap Funds five years ago, how much his value would have been today.
Top-5 Multi Cap Funds: Investors get three times returns
Talking about the performance of multi-cap funds, the top-5 multi-cap funds have given a return of around 18-25% in the last five years. Among them, Quant Active Fund Scheme has given the highest returns of 25.08%. In this scheme, if someone had invested a lump and Rs 1 lakh in this scheme five years ago, then today its value is more than about 3 lakh rupees.
Let us understand through mutual fund calculations that if an investor had invested a lump sum of 1 lakh in these top-5 multi-cap funds five years ago, then how much his value would have been today….
Source-AMFI (based on NAV on 27 January, 2025)
Flexi Cap Vs Multi Cap: What is the difference between the two?
Flexi cap mutual funds often compare with multi -cap funds. Like the flexi cap, multi-cap funds also invest in instruments related to equity and equity of companies with different market cap. But there is a basic difference in them.
On the one hand, it is mandatory for flexi cap funds to invest at least 65% share in equity and equity related instruments. On the other hand, this limit for multi -cap is 75%. However, the fund manager in the Flexi cap has complete freedom to invest in equity between large cap, mid -cap and small cap without a particular limit. Whereas in multi-cap, fund manager is mandatory to invest his corpus in at least 25% large cap shares, 25% mid-cap shares and other 25% in small-cap stocks.
Flexi Cap Vs Multi Cap: Which of the two better?
CEO and CFA Mohit Gang of Moneyfront say that given the ups and downs of the current market, fund managers should be left to which they consider to be better options in large, mid or small cap. The Flexi Cap Fund is better than this because it gives fund managers complete freedom to invest in any market cap, sector or style.
Flexi cap funds are more beneficial than multi -cap funds. Under the rules in multi -cap funds, it is mandatory to invest 25% in large, mid and small cap, which limits the strategy of fund managers and increases the risk. Currently, Flexi Cap Funds are investing more in large cap, making them less risky and attractive options for investors.