Many people are turning to the stock market to get higher returns from fixed deposits. But if you have little knowledge about stock market then you can invest in mutual fund. You can earn good profits by investing in flexi-cap funds of mutual funds. This category has returned up to 59% in last 1 year. Today we are telling you about Flexi Cap Funds.
First of all know what is flexi-cap fund? Flexicap is an equity mutual fund that has flexibility in investing. In this, the fund manager invests the investor's money in small, mid or large cap as per their choice. In this, the fund manager is not bound as to how much he should invest in which fund category.
Who should invest in this scheme? If you want to invest in equity funds but don't want to take high risk exposure, you can invest in top-rated flexi-cap funds. These funds are also well diversified according to market capitalization. These funds may provide lower returns than small and mid-cap funds when the market is stable, but these funds are less risky in volatile market conditions. So, if you want a low risk fund then you can invest in flexi cap funds.
It is good to invest in this for a long time Pankaj Mathpal, personal finance expert and founder and CEO of Optima Money Managers, says that one should invest in these schemes with a minimum time horizon of 5 years. Categories may not perform well in the short term, but in the long term they can give you better returns.
It would be better to invest through SIP According to experts, instead of investing money in mutual funds at once, one should invest through Systematic Investment Plan i.e. SIP. Through SIP, you invest a fixed amount every month. This further reduces the risk, as it is not much affected by market fluctuations.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
