Flexicap Funds Top Equity Inflows in October with Rs 8,930 Crore Boost
Flexicap funds have emerged as the leading choice for equity mutual fund investors, recording impressive inflows. In October, these funds netted Rs 8,930 crore, making them the top category in terms of equity inflows. This surge in popularity can be attributed to several factors that appeal to a wide array of investors.
What Are Flexicap Funds?
Flexicap funds are a dynamic category of equity mutual funds that invest across the market-cap spectrum—large-cap, mid-cap, and small-cap—without imposing fixed allocation limits. Key characteristics include:
– Flexible Investment Strategy: At least 65% of the portfolio must be allocated to equities and equity-related instruments, allowing fund managers to seize opportunities based on market conditions.
– Strategic Benchmarking: Fund managers have the liberty to select benchmarks that best fit their investment strategy, optimizing performance.
How Much Money Do Flexicap Funds Manage?
Flexicap funds stand as the second-largest category in equity mutual funds, trailing only behind sectoral and thematic funds. As of October 31, 2025:
– 43 schemes are available.
– Collectively, they manage Rs 5.34 lakh crore across 2.12 crore folios.
Why Financial Planners Recommend Flexicap Funds
Flexicap funds are unique as they grant fund managers complete freedom:
– Unlike multi-cap funds, which mandate fixed allocations across market caps, flexicap funds allow for unrestricted investment in large-, mid-, or small-cap stocks.
– This flexibility makes them an appealing choice during fluctuating market conditions.
Who Should Consider Flexicap Funds?
Flexicap funds are ideal for:
– Moderate-risk equity investors looking for long-term growth, particularly those with a minimum investment horizon of five years.
– Investors who prefer a simplified approach without the need to select individual stocks.
– Those aiming to build wealth steadily through Systematic Investment Plans (SIPs).
In conclusion, flexicap funds not only offer a diversified investment avenue but also present a strong option for those looking to navigate the complexities of equity markets. With their recent surge in inflows, these funds deserve consideration as a viable investment option for the future.