Equity funds are a category of mutual funds that primarily invest in stocks of various companies listed on the stock exchange. These funds pool money from multiple investors with the objective of seeking a relatively better return potential by participating in the stock market. Additionally, equity funds offer an opportunity for individuals to indirectly invest in a diversified portfolio of stocks, even with a modest amount of capital.

Flexi cap mutual funds belong to the equity mutual fund category and are characterized by their adaptable investment strategy. Unlike other funds with predefined allocations to specific market segments (such as large-cap, mid-cap, or small-cap stocks), flexi cap funds have the flexibility to invest across the entire spectrum of stocks based on market conditions and the fund manager's discretion. This approach allows fund managers to seize opportunities across different market capitalizations, sectors, and themes, making the scheme a suitable choice for investors seeking diversification.