Stocks of listed companies are what equity mutual funds such as multi cap, flexi cap, and focused equity funds all invest in. All these funds invest differently in companies and generate wealth for investors based on their risk profile and financial goals. According to SEBI regulations, multi cap funds must have a minimum of 25% allocation in large caps, midcaps, and small caps whereas flexi cap funds must have at least 65% in equities and no market cap-related limits. As opposed to these funds, focused equity funds are mutual funds that invest in up to 30 stocks, with no restrictions on market cap or sectors. So for a beginner, which mutual fund category will suit better, let’s know from different industry experts.
