mutual fund investment
The manner in which global tension has dominated the equity market in the last few months has greatly dented the market sentiment. The market has seen a lot of ups and downs since Trump came to power. In such a situation, many experts consider investing in mutual funds as safer and more profitable than investing in shares. Data also shows that the number of demat accounts is increasing rapidly. Investing through SIP has made the process of investing in mutual funds simple and accessible to the public. In such a situation, the question arises that among all the fund options available in the market, which one is better for you? To answer this question, we are going to tell you in detail about two major categories of funds in the market, Multi Asset and Flexi Cap.
Multi-asset funds are funds that invest in three or more asset classes, such as equity, debt and gold. Having a mix of shares, bonds and gold in the same fund helps in spreading the risk. If the stock market falls, then gold or debt balances it, due to which the investor does not face a big shock. The returns of these funds in the short term have ranged from -0.78 percent to +0.46 percent. This shows normal fluctuations, but over a period of three and six months many funds have provided returns of 8 to 11 percent.
flexi-cap fund
At the same time, flexi-cap funds invest entirely in equities, but the fund manager has complete freedom to change the ratio as per his wish between large, mid and small-cap companies. The market remained quite volatile in 2025 and fell by about 8 per cent in the middle of the year, but despite this, most large flexi-cap funds outperformed the Nifty 500 TRI. In the last one year, 8 out of 10 large flexi-cap funds gave returns of 10 percent to 13 percent, while the benchmark could give only about 8 percent.