DSP Flexi Cap Fund

A flexi cap fund is a type of an equity mutual fund that has the flexibility of investing across different market capitalization segments. Unlike funds with market cap mandates, such as large-cap or mid-cap funds or large and midcap funds, flexi-cap funds can invest dynamically across all the three market cap segments based on the fund manager's outlook and prevailing market conditions. DSP Flexi Cap fund invests flexibly across carefully selected companies of different sizes- large, mid, or small.

To invest in the DSP Flexi Cap fund, click on the green INVEST button on the left-hand side of the webpage (Click here). If you are an existing DSP Mutual Fund investor, you can start investing immediately. If you are new to DSP Mutual Funds, you will need to create a portfolio by filling out the necessary details. If you are new to mutual Funds, you will have to fulfill KYC requirements. Follow the on-screen instructions to get started. You can also invest in DSP Flexi Cap Fund through your mutual fund distributor.

Returns of DSP Flexicap Fund will depend on prevailing market conditions and investment horizon. Historical data shows that equity as an asset class, has the potential to outperform other asset classes over a long investment horizon. DSP Flexicap Fund has the potential to outperform large cap funds over long investment tenures. At the same, it can limit downside risks compared to mid-cap and small-cap funds in volatile markets.

Investors can check the past performance of DSP Flexicap Fund by clicking on the (performance) section. You can can check both lump sum and SIP returns. We have shown how DSP Flexicap Fund has performed versus its benchmark index (Nifty 500 TRI) and its additional benchmark (Nifty 50 TRI) over the last 1, 3, 5 years and since inception. One should always evaluate an equity fund?s performance over long investment periods.

• Winners rotate across market cap segments: Historical data shows that winners rotate across different market cap segments. Flexi cap fund managers can create alpha by prudently rotating allocations to different market cap segments based on their market outlook.
• Potential to create higher alphas: Large cap funds invest at least 80% of their assets in large cap stocks (top 100 stocks by market capitalization). Large cap stocks have high percentage of institutional ownership, are more researched and therefore have better price discovery. In other words, market prices of large caps are closer to their fair valuation (due to more efficient price discovery) compared to midcaps and small caps which maybe trading at significant discounts to their intrinsic value. Flexicap fund managers may be able to find quality mid and small cap stocks at attractive valuations, thereby creating alpha for investors over long investment horizons.
• Richer diversification: The investment universe of flexi cap funds spans all three market cap segments, adding more diversification to your investment portfolio.
• Less volatile than mid and small caps: Mid and small-cap funds invest at least 65% of their assets in midcap and small cap stocks respectively. While mid and small cap stocks tend to outperform large caps in bull markets, they are much more volatile than large caps. Flexi cap Fund managers have the flexibility to quickly shed risks in volatile markets and reduce downside risks for investors.

• Ideal for retail investors: Flexi cap funds are ideal for investors who are not able to decide how much allocation they should have towards each market cap segment and want the fund managers to decide on market cap allocations. Flexi cap fund managers aim for long-term capital appreciation while trying to limit downside risks in the short term. Hence, flexi cap funds can be part of the core equity portfolio of investors.