Flexi-cap mutual funds delivered 20% returns in 1 year:Investing in this is less risky; learn the key details here

Many people are investing in the stock market to earn higher returns than fixed deposits. However, if you have limited knowledge about the stock market, you can invest in it through mutual funds. You can earn good returns by investing in flexi-cap mutual funds. This category has given returns of up to 20% over the past year. Today, we are telling you about flexi-cap funds. What a flexi-cap fund is? A flexi-cap fund is an equity mutual fund that offers flexibility in investment. The fund manager invests investors’ money in small-cap, mid-cap, or large-cap stocks at their discretion. The fund manager is not required to invest a specific amount in any particular fund category. These Are Suitable for Long-Term Investment According to experts, investments in these schemes should be made with a time horizon of at least 5 years. The category may not perform well over a short period, but it can provide better returns over the long term. Investing Through SIPs Is Better According to experts, instead of investing a lump sum in mutual funds, one should invest through a Systematic Investment Plan, or SIP. Through an SIP, you invest a fixed amount every month. This reduces the risk, as the investment is less affected by market fluctuations. Who should invest in this scheme? If you want to invest in equity funds but do not want to take on too much risk, you can invest in top-rated flexi-cap funds. These funds are also well diversified across market capitalizations. When the market remains stable, these funds may deliver lower returns than small- and mid-cap funds, but they are less risky during volatile market conditions. Therefore, if you want a fund with lower risk, you can invest in a flexi-cap fund.