Should you go for flexi cap funds when markets are at an all time high?

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At a time when the stock markets are trading at all time high levels, in the world of mutual funds, one can see heightened activity especially the category of flexi-cap funds which is witnessing a lot of action of late. Manish Gunwani, CIO – Equity Investments spoke to Money9 on why is there an increasing interest of retail investors in this space and is it a great option.

“Flexi-cap funds offer the flexibility for fund managers to pick and choose stocks across market capitalizations. The strategy can dynamically adapt to varied market scenarios and thus has the potential to outperform across market cycles. The ability of flexi-cap funds to deliver alpha will depend on the fund manager’s ability to identify the right trends”, he said.

Nippon India Mutual Fund (NIMF) recently launched Nippon India Flexi Cap Fund- an open-ended dynamic equity scheme investing across market caps. The New Fund Offer (NFO) opened on 26th July and will close on 9th August. The fund will be benchmarked against NIFTY 500 TRI and the minimum investment required is Rs 500 and in multiples of Re 1 thereafter.