We have been hearing a lot about Flexicap Funds of late. In this article I intend to discuss the various aspects of the flexicap fund category and why it makes sense for you to invest in a flexicap fund.
Historical Background
Looking at the fact that a majority of mutual fund schemes were not true to their label and would invest predominantly outside of the sphere to which these supposedly belonged, SEBI issued a circular on the 6th October 2017 and prescribed various limits for investment of their capital so as to ensure that various schemes would remain true to their labels. The circular also defined the investment universe for broader categories of equity schemes of large cap, midcap and small cap funds. Under this circular, for Multicap Funds, SEBI prescribed a limit of 65% investments of their capital in equity and equity products.
