Key Points
While these are similar to flexi-cap funds in that both invest across the market-cap spectrum, the key difference is in the relative exposure to large-cap, mid-cap and smallcap stocks..
To ensure a true to label positioning, multi-cap funds were required to park a minimum 25% of the corpus in each of the three market-cap segments..
The data for 31 August shows flexi-cap funds holding 61% of assets in large caps, 18% in mid caps, and 13% in small caps...
Juzer Gabajiwala, Director, Ventura Securities, remarks, All funds in the flexi-cap category tend to hug large caps, irrespective of the market conditions, which defeats the very premise of the category..
Niranjan Avasthi, Head, Product, Marketing and Digital, Edelweiss AMC, whose multi-cap NFO is currently active, observes, Taking market-cap related calls in flexi-cap funds is difficult given the benchmark positioning...
