But that doesn’t worry you as you can just go to the store’s website and order the one you want. So, now you can buy your clothes from the comfort of your home. Quality and flexibility are really a blessing, isn’t it?
Here is a fund that allows the fund manager to invest in quality companies with growth opportunities in market capitalization.
Introducing Flexi-Cap Fund
Flexi Cap Fund There is a new category of mutual funds, which invest minimum 65% of their fund corpus in equities. In this fund category, the fund manager has the flexibility to take exposure in large cap, mid cap and small cap segments without any restrictions. Hence, flexi cap funds invest your funds in the market capitalization. This means that fund managers have complete control over limiting or maximizing exposure to a particular market cap segment, based on how they view that segment in the future. And this decision is based on the growth potential, historical performance record and risks of these companies and sectors. Generally, flexi cap funds have a portfolio of companies with professional management and growth capabilities.
Why are Flexi Cap Funds beneficial for you?
diversified portfolio
Favorable Risk-Return Ratio
Flexi cap funds provide exposure to a broad equity spectrum including all sectors and companies. This can lead to a portfolio with a good combination of equities that can generate moderate returns. Also, if invested for a long term, this fund gives a lot of scope to manage the risk of market volatility.Captures opportunities across market caps
Flexi Cap Funds are equipped with the flexibility to cross market caps and tap the opportunities available in each market cap segmentbeat inflation
Equities as an asset class may have the potential to beat inflation in the long run. Since flexi cap funds invest in equities, the chances of your investments to beat inflation in the long run can be quite high.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 the rate of 15% along with applicable cess.Long Term Capital Gains (LTCG) Tax
If the tenure of your investment is more than one year then LTCG tax will be applicable to you. Here you will be charged 10% and applicable cess on capital gains above Rs 1 lakh.Are Flexi Cap Funds Right For You?
Flexi Cap Mutual Fund would be a suitable investment option where you can expect reasonable returns in terms of growth over a long investment horizon.
Conclusion:
It is important that the Flexi Cap Fund scheme suits your investment objective. The investment expertise of the fund manager is also paramount. Hence, research thoroughly and if necessary, consult a mutual fund distributor [MFD] To help you make the right decision.(Flexi Cap – As per SEBI classification it is an open-ended dynamic equity scheme that invests in large-cap, mid-cap, small-cap stocks. The minimum investment in equity and equity related instruments is 65% of the total assets )
Disclaimer-An Investor Education Initiative by UTI Mutual Fund
Mutual fund investments are subject to market risks, read all the scheme related documents carefully.
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(SEBI Score Portal). This content is part of UTI Mutual Fund’s investor education and awareness initiative.