Do Flexi-Cap Funds Really Help To Diversify?
Hemant Rustagi
Chief Executive Officer, Wiseinvest Pvt Ltd.
One of the key factors that can help you tackle the impact of volatility in the stock market is the level of diversification in the portfolio. Besides, the level of exposure to different market segments determines the balance between risk and reward. Considering the importance of having a well-balanced portfolio, flexi-cap funds can help you create one. A flexi-cap fund has to invest a minimum of 65 per cent of its assets in equity and equityrelated instruments. However, there is no minimum threshold for investments in Large-Cap, Mid-Cap and Small-Cap stocks.