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Flexi-cap fund selection is the most important single equity decision for most retail investors. It is the core portfolio holding; everything else is satellite. Pick well and hold long.
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Market-risk disclaimer. Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. Flexi-cap drawdowns of 30-45% are normal.
Step-by-step procedure
See the procedure infobox above for the eight steps.
Flexi-cap vs multi-cap vs large & mid
Category
Mandate
Flexi-cap
Any market cap, manager’s discretion
Multi-cap
Min 25% each in large/mid/small
Large & Mid
Min 35% large + 35% mid
Flexi-cap = max manager flexibility. Multi-cap = forced diversification across caps.
Step-by-step playbook for selecting a mid-cap equity mutual fund. Covers SEBI categorisation, benchmark comparison, drawdown tolerance, fund …
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