Total assets under the newly created flexi-cap category stood at Rs1,58,725 crore as of March end and constituted 16% of the overall assets of open-end equity funds, second only after large-cap funds, a report by Morningstar India showed.
In November 2020, the Securities and Exchange Board of India (Sebi) had launched a “flexi-cap" category for mutual funds, requiring them to invest at least 65% of the corpus in equity but having no restriction on investing in large-, mid-, or small-cap stocks. This came after the markets regulator in September had introduced new norms for asset-allocation rules for the multi-cap funds, mandating a minimum of 25% allocation each in large-, mid-, and small-cap stocks.
