Flexi Cap Funds are amongst the most preferred mutual fund investments to have not only diversification of portfolio but also exposure large pool of companies across various industries. Being a Flexi-cap fund it has the advantage of flexibility on the fund’s allocation since the fund manager can invest in a company of all caps; large-cap, mid-cap and small-cap. For the record, here are 5 major advantages of investing in the UTI Flexi Cap Fund:
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Diversified Portfolio
Portfolio-wise UTI Flexi Cap Fund invests across sectors and large-cap, mid-cap and small-cap companies. Balances the gains and losses and comes with added stability when the back and forth between the particular market is high. For the investors this diversification brings relief, knowing the fact that their investment is not tied to one single pathway of growth.
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Flexibility in Allocation
While some funds are limited to exposure to either large-cap, mid-cap or small-cap stocks, the UTI Flexi Cap Fund is free to invest in large, mid and small-cap stocks. It also means that the fund has ways to effect change in response to the market and seize growth in different areas. Therefore, investors can benefit from the market through a strategic plan that suits a bull and bear market.
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Expert Fund Management
It is a Flexi Cap Fund offered by UTI Mutual Fund House being managed by professional fund managers who do bottom-up stock picking. By doing so, their experience assists investors in investing in markets which may be in the process of transformation and thus, enhance their performance. Hence, investors can rely on confidence that their investment decisions are properly informed by market data.
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Long-Term Growth Potential
The UTI Flexi Cap Fund provides exposure to high-growth pent-up potential sector-wise. By investing in new entrants in the market and those industries with high growth potential the fund appeals to investors with long-term vision of the way to accumulate wealth. In the long run, it provides the investors with an opportunity to create a good financial base for their future use.
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Tax Efficiency
The UTI Flexi Cap Fund offers tax efficiency with returns that are held for over a year and classified as long-term capital gain taxed at a lower rate. It is also free from most of the negative features of other forms of funding, particularly because it has more tax benefits since it is considered an equity investment. But before I tell you about them, understand that these tax advantages can add a lot of value to the total return of your investment.
Another investment that is still attractive is the diversified, flexible, professionally managed, long-term growth-oriented and tax-efficient Flexi Cap Fund. These funds including that of UTI or HDFC flexi cap fund are a valuable investment instrument in an investor’s portfolio because it gives the investor a chance to exploit opportunities in various markets, whether they are large-cap, mid-cap, or small-cap markets. Some of these platforms include 5paisa which builds up on this by providing more insights and research features. The platform also supports the wise saying that investors should always do their assessment on the level of risk they are willing to tag along with the amount of money that is intended to be invested.
