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Wondering if you should invest in Flexi Cap Funds? Here’s what you need to know

Shopping is fun. While most of the time you prefer to visit your favourite store at the mall, browse through the collection and pick the ones you like. But there are times when a trip to the mall to buy a new suit may seem exhausting.

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?
Diversified Portfolio

The portfolio of Flexi Cap Funds invests across the market capitalisation. This means your predominant equity portfolio may have an edge of diversity to handle the broader equity market highs and lows in the long run.

Favourable Risk-Return Ratio

Flexi 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 cap

Flexi Cap Funds are equipped with the flexibility to move across market caps and tap opportunities available in each market cap segment

Defeats Inflation

Equity 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) Tax

STCG 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) Tax

LTCG 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.


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.

To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visit
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 and/or visit
(SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.

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