Flexi cap funds for beginners, mid career, and retirees: Investing for different life stages

Choosing a suitable investment option from the many mutual fund schemes available in India can feel overwhelming. However, if market volatility is a concern and you're uncertain about which market capitalisation to focus on, flexi cap funds can serve as a suitable choice. Flexi cap funds offer flexibility and growth potential over long term, making them a reasonable investment avenue for all stages of life.

Let's explore how these versatile funds can cater to the investment needs of beginners, mid-career individuals, and even retirees, potentially helping them achieve their financial goals.

• Table of contents

1. What are flexi cap funds?
2. Flexi cap funds for beginners
3. Flexi cap funds for mid-career individuals
4. Flexi cap funds for retirees
5. Bajaj Finserv Flexi Cap Fund
6. FAQ

What are flexi cap funds?

Flexi cap funds invest in companies spanning the entire market capitalisation spectrum, including large cap, mid cap, and small cap stocks. Unlike large cap, mid cap or small cap funds, which adhere strictly to market capitalisation-based stock selection, flexi cap fund managers have the flexibility to invest in companies irrespective of their size. Thanks to their flexible investment mandate, these funds present an opportunity for investors to diversify their portfolios for effective risk mitigation.

The flexi cap fund manager plays a pivotal role in this strategy, evaluating the growth potential of companies without being constrained by their size. The approach allows for a judicious allocation of funds across diverse market segments and companies, aligning with the objective of optimising the return potential while maintaining a balanced risk profile.

Flexi cap funds for beginners

Starting your investment journey? Flexi cap funds offer a simplified way to diversify your portfolio. Here's why one should consider flexi cap funds for beginners:

One-stop solution: Invest in large, mid, and small cap stocks with a single fund, reducing the need to choose separate options.

Dynamic asset allocation: Fund managers adjust the mix of stocks based on market conditions, mitigating risk and optimising the return potential.

Longer investment horizon: Suitable for a long-term horizon, which allows the fund to ride out short-term market fluctuations and capture growth opportunities.

Risk/Return profile: These funds offer a balance between risk and return potential, making them suitable for building a strong foundation for your portfolio.

Flexi cap funds for mid-career individuals

Flexi cap funds for mid-career individuals are a smart investment choice because:

Higher growth potential: Flexi cap funds offer good exposure to equities, leading to a relatively better long-term return potential.

Capital appreciation: Suitable for long-term goals like retirement planning or children's education, where capital growth is crucial.

Active management: Fund managers' expertise guides asset allocation, freeing you from monitoring the market closely.

Flexibility to adjust: As your risk tolerance or goals evolve, you can choose from various flexi cap funds with different investment strategies.

Flexi cap funds for retirees

Flexi cap funds for retirees can play a role in:

Hedging against inflation: Equities have the potential to outpace inflation over the long term, thus protecting your purchasing power.

Flexibility for future needs: Flexi cap funds can remain a part of a portfolio even during retirement as they offer flexibility to adapt the market cap allocation to suit one’s changing financial needs.

Bajaj Finserv Flexi Cap Fund

Bajaj Finserv Asset Management Limited offers the Bajaj Finserv Flexi Cap Fund, an open-ended equity scheme designed to invest across large cap, mid cap, and small cap stocks. The fund's primary goal is to foster long-term capital appreciation by predominantly investing in equity and equity-related instruments across different market capitalisations. With the S&P BSE 500 TRI as the benchmark index, this scheme caters to investors seeking wealth creation and capital appreciation over the long haul. The fund offers both direct and regular plans to suit diverse preferences. However, it's important for investors to acknowledge the high-risk nature of their principal investment. For a detailed scheme information, click here.

Conclusion

Flexi cap funds offer versatile investment opportunities suitable for different life stages, be it the early career phase, family-raising period, educational planning, retirement, or legacy considerations. Their adaptability serves as an invaluable tool in navigating the intricacies of financial planning. However, investors should always seek guidance from a financial advisor to ensure their investment strategy aligns with their individual life journey. By incorporating flexi cap funds into one’s financial plan, one can potentially pave the way for a financially prosperous future.

FAQs:

What is the minimum investment amount required for flexi cap funds?
A. The minimum investment amount for flexi cap mutual funds may vary among different schemes, with some allowing investments as low as Rs. 500.

Can I switch between different flexi cap funds?
A. Yes, you can switch between flexi cap funds, but exit loads may apply plus you have to consider taxation impact as well. Consult your financial advisor before switching.

How often should I review and rebalance my flexi cap fund portfolio?
A. Review your portfolio annually or when your life goals or risk tolerance change. Adjust your fund choices if needed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.