All You Need to Know About the Flexi Cap Category - UTI Mutual Funds 

<p>The Securities and Exchange Board of India (SEBI) has defined different categories of mutual fund schemes, by sharing guidelines as a broader mandate to design the investment portfolio. Such funds are broadly categorised based on assets they invest in, like <a href="https://www.utimf.com/mutual-fund-products/equity-mutual-funds/">equity funds</a>, <a href="https://www.utimf.com/mutual-fund-products/debt-funds/">debt funds</a>, <a href="https://www.utimf.com/mutual-fund-products/hybrid-funds/">hybrid funds,</a> etc. Read on to know about flexi cap funds.</p>

<h2 style="font-size: 21px">Flexi cap fund meaning: What is a flexi cap fund?</h2>

<p>A flexi cap fund invests predominantly in equity and equity-related securities flexibly across the market capitalisation spectrum. Since no single market capitalisation segment has consistently outperformed the markets, such flexibility to invest across different market segments enables the fund manager to aim for better returns. Flexi-cap funds must put at least 65% of their total assets in equity and equity-related securities.</p>

<p>These funds give your investments exposure to equity shares of large-cap, mid-cap and small-cap companies across the sectors. They typically invest in reliable companies which are market leaders in their domain, follow robust business models and have healthy balance sheets.</p>

<p>With a focus on investing across the market cap segments, flexi cap funds offer both growth and value to investors while striking a balance between risk and volatility in a single portfolio.</p>

<h2 style="font-size: 21px">Why invest in flexi cap fund?</h2>

<p>Now that we&rsquo;ve covered flexi cap fund meaning, the next question that may arise in an investor&rsquo;s mind would be &ndash; why invest in flexi cap mutual funds? Flexi cap funds are designed to pick out growth opportunities in a rising market and reduce the downtrend in a falling market. These funds are also a good option for investors who want to participate in the full market cycle over a medium to long term. Flexi Cap funds allow <a href="https://www.utimf.com/about/key-people/fund-managers/">fund managers</a> to invest without staying anchored to a prescribed sub-limit to a particular capitalisation segment.</p>

<h2 style="font-size: 21px">Who should invest in flexi cap funds?</h2>

<ul>
<li>Investors who wish to build their core equity portfolio holding that invests in quality businesses that have the potential to generate economic value for an extended period.</li>
<li>Investors in search of a fund which brings a disciplined approach to the portfolio.</li>
<li>Ideal for investors with moderate risk profiles who want to stay invested for 5 to 7 years to meet their long-term financial goal.</li>
</ul>

<h2 style="font-size: 21px">How are flexi cap funds taxed?</h2>

<p>Flexi cap mutual funds are part of equity-oriented schemes and will be taxed similarly to other equity mutual funds. Based on the holding period, the capital gains tax is classified into two categories:</p>

<table border="1" cellpadding="1" cellspacing="1" height="207" width="628">
<tbody>
<tr>
<td>Capital Gain Tax</td>
<td>Duration</td>
<td>Tax Rate</td>
</tr>
<tr>
<td>Short-Term Capital Gain<br />
(STCG)</td>
<td>Within 12 months of<br />
investment</td>
<td>15% + cess + applicable<br />
surcharge</td>
</tr>
<tr>
<td>Long-Term Capital Gain (STCG)</td>
<td>After 12 months of investment</td>
<td>
<p>12% + cess + applicable<br />
surcharge*</p>
</td>
</tr>
</tbody>
</table>

<p>*LTCG of up to ₹1 lakh in a year is not taxable. The limit is inclusive of LTCG on equity shares and equity-oriented mutual funds.</p>

<p>Disclaimer:</p>

<p><b>Mutual Fund investments are subject to market risks, read all scheme related documents carefully.</b></p>

<p>The tax provisions, as mentioned in the article, are for illustrative purposes only, and are updated as per the Union Budget 2020 passed by the Parliament. The tax rates for capital gains will be as per the tax laws applicable on the date of redemption/ sale and not on the date of investment.</p>

<p><img alt="" height="1" src="https://doc.utimf.com/v1/AUTH_5b9dd00b-8132-4a21-a800-711111810cee/UTIC…; style="width: 1px !important; height: 1px !important; opacity: 0;" width="1" /></p>