Key Points
Tarun Birani, Founder & CEO, TBNG Capital Advisors, says flexicap funds have the mandate to move into any capitalisation, but maybe last three-four years of data, what we have been getting, is giving us indication that the tilt of flexicap category is moving more towards largecaps because the benchmark and all those benchmark understanding of the flexicap is also more towards largecaps..
Tarun Birani: The most important objective of this category was flexibility. This category gives fund managers the flexibility to move across categories, across market capitalisation in large, mid or small categories..
This adaptive investment strategy is one of the biggest positive points about the flexicap strategy as it allows the fund managers to shift allocation depending on market conditions and opportunities...
For any fund manager in a flexicap portfolio, it is how much proportion of midcap, smallcap or largecap they have built in as the returns have come based on that...
My suggestion would be to take a pure largecap fund portfolio because a flexicap fund can keep changing based on the market environment..
