Flexi-Cap Fund on WebNotes

Flexi Cap mutual fund in India

Sat, 16 May 2026 00:00:00 +0000

A Flexi Cap mutual fund in India is an open-ended actively managed equity scheme that invests a minimum of 65 per cent of total assets in equity and equity-related instruments across the full market-capitalisation spectrum, with no mandatory minimum allocation to any individual market-cap segment (large-cap, mid-cap, or small-cap). The category was introduced by SEBI through Circular SEBI/HO/IMD/DF3/CIR/P/2020/228 dated 6 November 2020, as a direct response to industry concerns following the September 2020 multi-cap reclassification that had mandated a 25-25-25 large-mid-small allocation for the Multi Cap Fund category. The Flexi Cap category was created to preserve the structural flexibility that the pre-September-2020 Multi Cap framework had provided, allowing AMCs to maintain genuinely market-cap-flexible equity funds without the new Multi Cap allocation constraints.

PPFAS approach to small-cap and micro-cap allocation

Sat, 16 May 2026 00:00:00 +0000

The PPFAS approach to small-cap and micro-cap allocation is the body of policy and operational practice through which PPFAS Mutual Fund , at the Parag Parikh Flexi Cap Fund and related schemes, addresses the small-cap (typically the 251st to 500th by market capitalisation) and micro-cap (typically below the 500th by market capitalisation) segments of the Indian listed equity universe. The approach is characterised by theoretical permission within the Flexi Cap regulatory framework combined with practical structural constraints that limit small-cap and micro-cap exposure to materially below the percentages typically observed at peer Flexi Cap and Multi-Cap funds.

Multi-cap fund vs flexi-cap fund in India

Tue, 12 May 2026 00:00:00 +0000

SEBI’s October 2017 categorisation circular originally created a single “Multi-cap” fund category requiring diversified equity investment across market capitalisations. In January 2021, SEBI split this into two distinct categories, multi-cap and flexi-cap, with materially different mandatory allocation constraints. This article explains the distinction between the two categories and their practical implications for investors.

SEBI definitions

Multi-cap fund

SEBI’s September 2020 circular (SEBI/HO/IMD/DF3/CIR/P/2020/130) redefined multi-cap funds. The mandatory allocation requirement is: