Flexi cap mutual funds are one of the best mutual fund category out there. It is like equity mutual fund where there should be atleast 65% equity investment but there is no hard and fast rule about category of the equity. It can have large, Mid or small cap investment as per the market condition.
And because of that it is the best investment. For an ideal portfolio we should have a right mix of large, Mid and small cap investment and then rebalance it based in market conditions. For example, if the market is going down try to have more large cap fund, if the market is in bull run try to have more small cap fund. But you cannot do that by yourself.
This is where Flexicap mutual fund comes into picture. The fund manager does the rebalancing for you and gives you the best returns for your investment. It shuffles between the funds to give the best returns when it's bear or bull market. For example, the flexicap was large cap heavy when the market was in downtrend in Corona but then in 2021 it became Small cap heavy as the market was improving. And that's how the Flexicap works.
Parag Parekh Flexicap is one fund which is one of the best and famous fund out there. The strategy of this fund is little different, it also invests in international fund and thus taking the best returns from all over the world. We all know that if there is a downtrend in one market, the other market might or might not be affected and that's why taking that into consideration has made Parag parekh as one of the best flexicap out there.
If we talk about volatility, flexicap is less volatile than small and Mid cap whereas the returns is as good as small and Mid cap. So if you are someone who wants to have only one fund in your portfolio for the rest of your life, invest only in the flexicap mutual fund.
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