Flexi-cap Fund Vs Hybrid Fund

Investors in mutual funds can choose from equity, debt, or hybrid funds, each offering different risk and return profiles. Flexi-cap funds provide diversification across market capitalisations, while hybrid funds balance equity and debt for stable returns.

- Kalpesh Dave

Investors in Mutual Funds can be divided into three types, such as:

• One group is individuals willing to take a risk and invest in Equity Funds

• Those who want to be safe by Investing in debt funds provide some returns while keeping their money safe

• The ones who wish to get the best of both worlds by investing in hybrid funds

Within the equity category, there are various sub-categories of mutual funds. Two of them are multi-cap and hybrid funds. While these fund types invest in companies with varying Market capitalisations, their methods differ.

What are Flexi-cap Funds

Flexi-cap funds invest in companies with a Range of market capitalisations, such as large-, mid- and small-cap equities. Unlike multi-cap and Small cap funds, which invest in equities depending on their market capitalisation, flexicap funds allow investors to diversify their portfolios by investing in firms with varying market capitalisations, reducing risk and Volatility.