But that does not worry you because you can just visit the store website and order the one you like. So, now you get to buy your clothes from the comfort of your home. Quality and flexibility are truly a blessing, isn’t it?
Here’s a fund that allows the fund manager to invest in quality companies with growth opportunities across market cap.
Introducing Flexi-Cap funds
Flexi Cap Funds are a new category of mutual funds, which invest a minimum of 65% of its fund corpus in equity. In this fund category, the fund manager has the flexibility to take exposure to Large Cap, Mid Cap, and Small Cap segments without any restrictions. So, Flexi Cap Funds invest your funds across market capitalisation. This means fund managers have the complete control to limit or maximize exposure to a particular market cap segment based on how they view that segment to perform in the future. And this decision is based on the growth potential, historical performance record and the risks that these companies and sectors carry. Typically, a Flexi Cap Fund has a portfolio of companies with professional management and growth abilities.
Why are Flexi Cap Funds beneficial for you?
Favourable Risk-Return RatioFlexi Cap Funds provide exposure to a broad equity spectrum, including all the sectors and companies. This may lead to a portfolio with a good combination of equities which may generate moderate returns. Also, if invested for the long term, this fund gives considerable scope to manage market volatility risk.
Captures Opportunities across market capFlexi Cap Funds are equipped with the flexibility to move across market caps and tap opportunities available in each market cap segment
Defeats InflationEquity as an asset class may have the potential to beat inflation in the long run. Since Flexi Cap Fund invests in equity, the possibility of your investment to beat inflation may be fairly high in the long run.
How are Flexi Cap Funds taxed?Capital gains on Flexi Cap Funds will be taxable. Your investment holding period will determine the tax rates applicable to you.
Short-term Capital Gains (STCG) TaxSTCG tax will be applicable to you if your investment tenure is less than or equal to one year. You will be taxed at 15% herewith applicable cess.
Long-term Capital Gains (LTCG) TaxLTCG tax will apply to you if your investment tenure is more than one year. Here you will be taxed at 10% plus an applicable cess of your capital gains in excess of Rs 1 lakh.
Are Flexi Cap Funds suitable for you?
A Flexi Cap Mutual Fund will be an apt investment option where you may expect reasonable returns in terms of growth over a longer investment horizon.
Conclusion:It is crucial that Flexi Cap Fund scheme aligns well with your investment objective. The fund manager’s investment expertise is of paramount importance as well. So, research well and, if necessary, consult a Mutual Fund Distributor [MFD] to help you make the right decision.
(Flexi Cap – As per SEBI Categorization it is an open-ended dynamic equity scheme investing across large-cap, mid-cap, small-cap stocks. Minimum investment in equity & equity related instruments is 65% of total assets)
Disclaimer –An Investor Education Initiative by UTI Mutual Fund
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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Please deal with only registered Mutual funds, details of which can be verified on the SEBI website under “Intermediaries/market Infrastructure Institutions”. All complaints regarding UTI Mutual Fund can be directed towards email@example.com and/or visit
(SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.