Go for flexi-cap funds to navigate market volatility

DYNAMIC REBALANCING ENABLES THESE FUNDS TO GENERATE ALPHA CONSISTENTLY

- SAIKAT NEOGI

INDIVIDUALS SHOULD CONSIDER investing in flexi-cap funds as they are more resilient in volatile markets. The flexibility of fund managers to allocate money across market capitalization helps them to generate alpha consistently in these funds.

The appeal of flexi-cap funds is growing. In the first half of this year, about ₹31,500 crore has flowed into these funds.

Most of these funds have taken higher exposure to large-caps—on category level around 58.1%—with 19.8% in mid-caps, 16.1% in small-caps, and the rest in cash. This defensive stance helps them manage downside risk during uncertain times.